IGSM continues to defy gravity and has now closed higher for an eighth straight session. The best part about this rally, and the reason why I think this stock is going to break a penny and more, is because this run has been measured. What I mean by that is the stock has moved methodically, never getting too far ahead of itself and always retracing some of its gains. Each day is a day of consolidation and the stock upticks letting new investors in, as well as letting normal profit-taking to occur.
What gets me excited about this stock is the fact that the float of 199 million has remained the same throughout the run. The company is not diluting. Any selling is being done through retail profit takers and shorting of the stock.
Over the course of this run the stock has seen 340 million shares trade hands. At this stage the float is almost certainly in hands of shareholders looking for $.01 and better. Today's volume is telling you that. With 20 million shares, the lowest total volume in the last 7 sessions we closed higher by 20% and at the highest level since the start of this run.
Some may tell you IGSM is over sold, it needs a pull-back, the chart looks like it has topped. Those same people have probably been saying that for days and have never seen a sub-penny stock post a chart quite like IGSM before. These types of stocks can post gains for days or weeks even without a pull back. With IGSM the pull backs are happening within the trading session meaning any type of retrace is being performed intra-day. Once this stops I think IGSM will post a violent move higher.
IGSM has been posting healthy 15-25% daily gains. Picture the recent trading sessions as a dam with a very small leak. Each day the leak gets a little bigger until finally the dam gives way. This is what I see happening with IGSM. With a tight share structure, a float that is almost entirely in strong hands, and positive news, IGSM is on the cusp of a dam bursting type breakout.
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