It’s summertime and many of those traders who grind through the hot months to buy penny stocks look for good news announcements to help push their trades into profits. A perfect example would be Intelligent Highway Solutions Inc. (OTC: IHSI) who, after being quiet for the first half of 2015, announced on July 23 news with one of the biggest names on the S&P 500 of a $1M deal. The news was powerful enough to send trading volume into a frenzy on IHSI stock and making traders over 100%, but what happened afterwards was such a disaster that buyers are waiting in the shadows for the aggressive selling to subside.
Find out more about IHSI shares here: $IHSI
Intelligent Highway Solutions is a California based company that deals in custom lighting products for indoor and outdoor applications. Within the company’s filings, one can identify their presence in the market after seeing how, on March 19, 2014, they bagged a purchase order from Honeywell International Inc. (NYSE: HON) for the installation of a temperature control system and associated sensors in a state owned office building in Alameda, California. That deal obviously worked out because, on July 1, 2014, Honeywell gave them a second purchase order for additional work in office buildings owned by the State of California.
The Honeywell connection bodes huge favors for IHSI shareholders in terms that a big board player reaching down to an OTC company for work shows the reality of what Devon Jones, Chief Executive Officer of the Company, has put together. While prior to the July 23 announcement of another $1M order from Honeywell was the first of 2015, it’s no wonder why shares of IHSI stock slowly fell from almost $0.10 share price ($0.0999 at the start of November, 2014) when there was only 29,055,535 shares of the stock out there, 8,904,900 of which were owned by directors.
In September, 2014, ISHI announced it had shipped its 300-watt grow light prototype to an industry-leading medical cannabis facility licensed by the city of Oakland, California. This indirect connection to marijuana was surely the first mistake a real company dealing with Honeywell made. Who really cares about a prototype light and what it can do for healthier yields of cannabis when you reported roughly $250,000 in revenues for each of the three month periods of 2014.
This is really when the lights went out for IHSI stock since $1.27 million of convertible notes were all beginning to become due, starting January, 2015. Between November and May, the company’s Q3 filing and their 10K filing, roughly 5.8 million shares of IHSI stock was issued, 5,150,750 shares of which were issued from January 1 to April to reduce $39,000 of outstanding principal due ($0.00757 per share).
From the start of the year until roughly the end f March, IHSI barely ever had volume in excess of 100,000 shares in a session which is likely the reason for the bombardment of bidwhacks by those who were able to obtain the cheap shares from the debt conversion. Still, during the decline, IHSI PPS managed to maintain itself above the 0.01 mark for almost all of the first 4 months of 2015. As soon as May rolled around, not only did IHSI pretty much go volume dormant, but it couldn’t touch 0.01 if it stood on top of itself and jumped on a pogo stick.
Action showed up in a big way last month just prior to the recent Honeywell order announcement and volume has been at record levels since. Having had 51,465,589 shares issued and outstanding as of May 20, their efforts made to increase the authorized shares from 130 million to 500 million, made back on May 14, has proven to be a costly one for IHSI shareholders. Now that roughly 480 million shares of IHSI has traded since July 20, roughly $1.375 million, could the bottom really be here and is it time to load up the dump truck for a possible bounce?
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