GROWING FASTER THAN FACEBOOK
Intertainment Media Inc. (CVE:INT) (PINK:ITMTF) stock price shot up more than 68% when the company said its Ortsbo.com platform had better performance than the first year growth rate of the famous Facebook. The company said to have over 1.1 million users on a weekly basis with a total of 2.1 million active users. For comparison, Facebook has 5.5 million active users by the end of its second year of existence. The promising announcement led to a price surge. Upon breakout, INT broke a trading channel that has been in play since September. Trading volume was roughly 23 times the 90-day average. There is a strong support at 13.5 cents, which should hold in case of retracement. From the technical side, things are looking really good and even show the possibility of further appreciation. However, Intertainment's fundamentals depict a wholly different story: • Liabilities are three times the value of assets • No cash • Current assets are not enough to cover the quarterly expenses • Constant net losses on the record • Quarterly sales have been stalling at the same level for the past year • New stock and debt instruments are constantly used to raise cash ortsbo_logo.jpgThe means of financing provide a threat of dilution for shareholders, as well as a possible default on the debts. The market cap has gone up to $12.9 million with the recent share price jump, although the net tangible worth of the business is actually negative. The potential of one platform is currently not enough to justify such inflated market value. The company compares Ortsbo's potential to that of Facebook. Yet, even with speculated $800 million in revenues and having over 500 million active users, Facebook hesitates to go public. Ortsbo has over 2.1 million users and is growing fast, but the business model might be flawed by the same fact that the company is already public, which forces additional costs and a different management style. https://ca.hotstocked.com/article/3778/intertainment-media-inc-cve-int-pink-itmtf.html