Aug 27, 2010 10:04 AM PDT
There are lots of big stories and big movers from the penny stock world today, but four of them are particularly noteworthy. Vonage Holdings Corporation (VG), Inovio Biomedical Corporation (INO), EcoSystem Corp. (ESYM.OB), and SpongeTech Delivery Systems, Inc. (SPNG.OB) are today's hot potatoes from the micro cap world. Here's a closer look at each.
Vonage Holdings Corporation (VG) made a major about-face today, opening much higher, and then moving much lower. Traders consider it an outside reversal bar, which would be bearish in this case.
The tumble came despite the fact that Vonage posted a profit in Q2 by cutting its expenses. The market was more focused on the bigger challenge of lower revenues as a result of lost subscribers. It's still better than taking a loss on higher revenue, but the market doesn't seem to care.
Inovio Biomedical Corporation (INO) announced this morning, in a collaborative effort with the University of Southampton, that they have developed a humoral immune (antibody) response with a prostate cancer DNA vaccine using electroporation.
Though the news and explanation is likely to be over most investor's heads, the market sure liked the way it sounded; INO shares are up sharply. On the other hand, they're also pulling back from intra-day highs.
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Bulletin board penny stock EcoSystem Corp. (ESYM) must be doing something compelling in investors' eyes - the company managed to raise $76 million according to today's announcement.
EcoSystem, which acquires and improves corn ethanol production facilities, received the funding from five different investment funds. The money will be used to acquire distressed ethanol production facilities and then to integrate EcoSystem's Cellulosic Corn(tm) technology into those facilities.
Another bulletin board penny stock, SpongeTech Delivery Systems, Inc. (SPNG) hasn't been shy when it comes to talking about itself. The latest salvo was today's double shot.
Before the market opened, SpongeTech announced they'd entered into a marketing and promotional agreement with the Tampa Bay Buccaneers. Shortly after that, the company announced that its stain remover pen partner - NXGen Holdings - had been featured in Investors Business Daily.
The news hasn't helped SPNG shares much today, though the selling volume over the last two days has been very light. The uptrend hasn't been killed yet.
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