Innovative MedTech Inc. (IMTH)

[Banker2]

If that were the case, then most OTC stocks would have to pay people to take their stock, because half of them lose money to begin with.

What sheep is saying is that the volatility of this stock, as with most OTC's coming into the light, is relatively high. Take a new "lighted" OTC stock, ZVTK. The company LITERALLY hasn't made a single dime (on paper so far), and the price shot up to around .015, before settling down to +0.005's. There's hardly any fundamentals in OTC's...which is why they're extremely risky.

Valuations work on major exchanges, but they're really hard to guage on OTC's. Since this stock in particular is a "development stage company", the multiplier would have to be exceedingly higher than the average established, major exchange stock. Basically, when I started trading OTC's, I tried doing the same thing...trading off fundamentals, but its nearly impossible. I'd pass up stocks everyday because they'd have some ridiculously absurd O/S count and non-current or non-existent financial statements...only to find that the stock "popped" the next day because of some PR...be it fluff PR, or substance PR.

Back in November when the company went from .002, to the current ~.02 PPS, the fundamentals still weren't there, but yet, it popped and hasn't returned.