One has to love microcap stocks, especially when you can realize a 400% gain over a matter of weeks. This is just what has occured for one small company called Italk Inc (OTCMKTS:TALK) whose stock has risen from $0.0002 to $0.0009 since the start of December. The main cause of this share price appreciation is a reverse merger announced by the company earlier this month with a Wireless Equipment Distributor & Technology Services Provider called United Mobile Solutions Corp.
Because of the fact that approximately 1.2 billion shares are outstanding, and the new company they’ve merged with has annual revenues of $16 million, investors view this stock as grossly undervalued. Currently the market cap is just over $1 million, meaning that revenues are almost 16X the market cap, while growth is also expected.
One thing that’s important to remember when dealing with microcap penny stocks like Italk Inc (OTCMKTS:TALK) is that dilution is always possible as the merged company looks to raise additional capital for expansion. We will be following this company over the remainder of the year to see what additional information pertaining to the merger and future plans come about.
The stock is currently trading higher by 50.00% or $0.0003 following the positive news, hitting $0.0009 per share at the time of us publishing this article. About 78.91 million shares traded hands or up 285.30% from the average. TALK has risen 215.79% since May 20, 2015 and is currently uptrending. It has outperformed the S&P500 by 218.05%.
iTalk, Inc. designs and develops retail voice and data communications services and integrates these services with wireless hardware devices to create communication solutions. The company has a market cap of $1.63 million. The Company’s product, iTalk sleeve, is combined with an iPod Touch, its iTalk application, to provide clients with cellular coverage. It currently has negative earnings. The Company’s other products include iData Personal HotSpot, iData Service Dell Inspiron Mini and iData Tablet Samsung Galaxy Tablet.