IDLM Stock Performance:
IDLM started trading in April 2010. Since then, the stock has traded $7.2M / 27M shares. In regard to the current bid, $147K / 1.3M shares have traded below 12.5 cents. This represents 4.8% of the shares and 2% of the dollars. One interesting thing to note is that it appears only $3K has traded below 10 cents. In regard to the “pumpers”, $190K / 143K shares have traded above $1. This represents 0.5% of the shares and 2.6% of the dollars. Those are nice estimated statistics, but what do they tell us?
I think if we want to examine things better, we should focus on 2011 and 2012. In 2011, 12.9M shares traded. In 2012, 6.5M shares traded. What’s more interesting is that the average price for both years is right around 20 cents. I’m calculating by an average daily sale price, so it might be slightly off, but my numbers show the average price in 2011 to be 20.3 cents and the average price in 2012 to be 19.8 cents. If I was a trader, I guess I might say the thing to do is buy under 20 and sell over 20. As an investor, I’ve done a lot of the first. Looking at the current ask, I guess I might ask why is this person selling? We all have our reasons. Perhaps a low margin flipper, someone desperate for cash, or someone who’s just fed up with waiting.
But what has really affected the trade of this stock? On 2/28/2011, the company announced a restatement. Prior to that it was trading in the high 20s / low 30s and it very quickly dropped below 20 where it pretty much remained for the next year – most of the time below 15 cents. This was quite frustrating for shareholders, with very little information and the elimination of PRs. The next major event was on 3/8/2012 when the company announced they would cease reporting and go black for a period of time to re-register. Though this again was frustrating, it represented a plan. And the stock began moving back to the high teens until 6/13/2012 when the 10/12G was released. This quickly sent the stock back into the 20s. But it wasn’t until mid-August when initial statement of ownership filings came out and quarterly results were released that people really felt we were ready to go, and the stock moved into the 30s. But this was short lived – helped a bit by the announcement that the company had bought back 4M shares at a price of 5 cents each. There was no approval of the registration. We still lacked PRs. And here we sit today, waiting…back in the teens.
What do we take from all this about where the stock is going next? All I can give is my opinion. We have a 10K coming. I also believe we have a registration approval coming, though I don’t know the date. When that happens, we will also have PRs coming and a company focus on marketing the stock. History tells me that this stock will move easily to the 30s when people feel we are ready to move forward. It also tells traders, I think, to buy below 20 and sell above 20. My recommendation: Hold.
