Monday’s Small Cap Market Watch (PSPW, IGXT, NEOM, WAVX)

In this report: 3Power Energy Group Inc. (OTC:PSPW), IntelGenx Technologies Corp. (OTC:IGXT), NeoMedia Technologies Inc. (OTC:NEOM), Wave Systems Corp. (NASDAQ:WAVX)

3Power Energy Group Inc. (OTC:PSPW) is a small sustainable energy company with only 5 full-time employees. Despite this fact, last Friday their volume nearly tripled, and they posted a 19.73% increase for a closing price of 0.54. There’s no doubt that companies in this field are seeing a lot of investor interest, but what caused this stock to see a nice little boost last Friday. Near last Thursday’s close they put out a piece of news that could have attributed to the surge, and maybe that explains it. The companies trading volume, even though it nearly tripled, was still quite low, so this to us indicates existing shareholders getting a little excited about the news piece. PSPW has a market cap of around 57.85M, -81.8% quarterly revenue decrease (yoy), and a book value per share of -0.03. Whatever the case is with last Friday’s slight jump, it’s obvious that in order for this company to make it, they are going to need to pick up their socks, so don’t get too excited. The volume is too low, and the rest of the numbers are seriously questionable.

IntelGenx Technologies Corp. (OTC:IGXT) trading very curiously last Friday. Despite a very promising announcement made by the company in which they stated, “announced that the U.S. Food and Drug Administration (FDA) has approved IntelGenx’ lead product, CPI-300, for patients with Major Depressive Disorder.”, the company closed the day down -10.92%, at 0.53 per share. Their volume also spiked dramatically last Friday where they traded 5.37M shares, compared to their daily average volume of around 530K/day. The day’s range on Friday (0.47 – 0.72) leads us to believe day traders got a hold of this stock, took their profits, and this may have caused some hysteria in the market for IGXT.

NeoMedia Technologies Inc. (OTC:NEOM) nearly quadrupled their trading volume last Friday trading 31.33M shares compared to their daily average of 7.9M. They also posted some serious percentage gains at the closing bell, finishing off the day at 0.0164 (+42.61%). Their balance sheet is seriously in the negative, and despite news put out by the company wherein they announced an Unregistered sale of security, are we to believe this news alone caused this major surge in both price, and volume in this small company with negative earnings, and a terrible income statement, or were they just trying to free up some stock to flood the market with?

Wave Systems Corp. (NASDAQ:WAVX) is the most exciting, and promising company in this report. With 129 full-time employees, this company focuses on developing, producing, and marketing hardware based digital security. Last Friday WAVX traded under their daily trading average, but posted a closing gain of +2.85% at 2.53/share. WAVX is a definite for anyones watch list; they just announced last Thursday that their Q3 NET Revenues rose by 42% to a record 9.5M. This undoubtably has caused shareholder interest to rise in WAVX.

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