Alternating a day of gains and a day of losses, IALS now stands for a resolution, and we are yet to see the effect of the August 8th email from MicroCapDigest . Several other small mailers have sent out messages, hoping to hook investors in. The budget for the promotion was $139,000 in total.
We mentioned IALS on Wednesday, as the ticker was becoming more active in the past days, though only on August 7th the first emails rained in.
Before that, IALS rose to visibility on changing its CEO, and acquiring a subsidiary, Tech 7 Systems, Inc. But let's see if IALS has the resources for a true acquisition, or if the deal is just a way to get Mr. Richard Dickieson on board as CEO, and offer exposure to the pink sheet markets. The financial filings of IALS show:- 35 million shares held by same Richard Dickieson
- 68 million shares outstanding, 500 million authorized
- Shares decreased by 1 for 1,000 in March
- Zero cash
- $488,580 current liabilities
- No revenues, $201,000 net loss since inception
And those results were filed under the old name and ticker, active until this June. In fact, the report contains two old names- Dukeshire Ventures Inc., and New Medium Enterprises, Inc. Both companies were in the development stage, used as a vehicle for exposure to the OTC markets. One of then, New Medium, even underwent a decrease in shares, a usual move for a penny stock that has fallen too much on monstrous dilution. In the past, IALS was traded on low activity, as high as $2 or $2, and right after the reverse split it stood for a moment at $14. With so many shares held by the director, those tickers look like a carefully prepared campaign to achieve the right price for selling the insider holdings.
On top of all, IALS has another acquisition of late, of Travel Time Technologies, Inc. At least this company has solid revenues, so in truth the reason for the acquisition may be again exposure to the OTC markets.
So we may expect that as soon as volumes rise enough, selling would be a very probable outcome. Thursday may be a strong day as the messages came in even before the markets opened, but the stock may move faster, and it's anyone's guess when the selling would happen.
