In last trading session, the stock price of BIONOVELUS INC (OTCMKTS:ONOV) jumped more than 11% to close the trading session at $0.170. The gains came at a share volume of 1.18 million compared to average monthly share volume of 369,910. A series of paid pumps have brought the stock on investors buy radar.
The fact that Bionovelus is the target of a paid pump should issue warnings bells for seasoned investors in and of itself. The stock has been largely stuck in illiquid OTC market oblivion for months, before the paid pump e-mails hit inboxes.
The company’s last financial report highlights an appalling picture. As per the last report, Bionovelus posted cash of just $7,000, making it almost a cashless company. The total assets stood at $1.1 million against the total liabilities of $1 million. To highlight, the company have never ever generated a dime in revenue while it recorded a net loss of $30,000 in the quarter.
One quick glance at financial report reveals that the company is not even trying to come out of oblivion. The idleness that report indicates it dismal and gets uglier when due diligence is done. The research on past endeavors determines what most OTC investors probably noticed coming with one quick glance at its charts and history. Bionovelus has been involved in some very dubious businesses in the past.
In January 2014, the company was named as First in Wireless Technology Inc. and claimed to spark the much hyped mobile VOIP revolution. Of course, the claimed revolution never happened. However, a large number of ONOV shares made their way into the free market when the hype subsided. At that time, it had to opt for a 1-for-750 reverse split with a change of name as well as management. It appears like company is following its old measures again.