Shares of Integrated Media Technology Ltd. (NASDAQ: IMTE) rocketed more than 1,000% Wednesday, on no news and with no word from the company’s public relations agency on an explanation.
The stock ran up as high as 1,626% in intraday trading to a high of $41.26. By end of day, the stock closed 818% higher.
On Tuesday, IMTE traded at just $2.00. But on Wednesday, volume skyrocketed to over 2 million shares from a 30-day average of 471 shares through Tuesday.
As the action heated up, the stock was halted temporarily 10 times on volatility throughout the day on both the way up and on the way down.
IMTE is an Australian-based company that develops visual technology with a focus on glasses-free 3D display technology. Before Wednesday’s spectacular surge, the stock had dropped 65.5% year-to-date.
After the insanity with the stock on Wednesday, shares climbed another 55% on Thursday. With about 2.6 million shares outstanding, the rally pushed IMTE’s market cap to over $89.9 million.
The only real news early this week from the company was on Tuesday when IMTE announced that it had appointed PCG Advisory Group as its new investor relations and corporate communications agency in the U.S.
“With our listing on the NASDAQ in 2017, we are moving ahead with expanding our investor awareness in the U.S. through PCG Advisory Group,” Herbert Ying Chiu Lee, Integrated Media’s Chief Executive, said in a statement. “We are making significant progress with our 3D imaging technology and integrated product lines in the display market through our wholly owned subsidiaries, Marvel Digital Limited and GOXD Technology Limited.”
PCG’s CEO, Jeff Ramson, said, “IMT is making significant progress abroad and we are pleased to become their U.S. Investor and Corporate Communications agency of record. IMT’s strong management team has built a profitable business and has the vision to execute on the opportunities they have created within the swiftly evolving 3D technology market.”
That news alone seemingly isn’t enough to trigger a stock to skyrocket over 1,000% in a single day. So what happened?
IMTE is one of a handful of low-float stocks that have experienced major short-term rallies on little or new news in the last few quarters. As shares start to surge, a flood of momentum traders accompanied by a limited float can lead to a parabolic spike in price really quickly, which is just what happened Wednesday.
Integrated Media only has 400 shares held short for a short percent of float of near zero, according to shortsqueeze.com. That suggests a short squeeze most likely isn’t the cause of the incredible spike.
But IMTE’s 238.37k-share float is tiny, so the huge bump in trading volume explains the extreme volatility. By end of day Thursday, volume was 853,807 compared to its 30-day average trading volume of only 471 shares.
At Thursday’s close, IMTE was up 1,400% for the week and nearly 700% for the month. IMTE looks like a promising company in an industry that is certainly on the rise, and with the growing interest in the company after this week’s spectacular rise, IMTE may be worth keeping an eye on.