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IGENE Biotechnology, Inc. (OTCMKTS:IGNE) Spikes Higher

IGENE Biotechnology, Inc. (OTCMKTS:IGNE) Spikes Higher
Written by
Jarrod Wesson
Published on
March 15, 2018
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It has been a busy time at IGENE Biotechnology, Inc. (OTCMKTS:IGNE) with the share price having a better month than most of the months. The company's stock price has risen from the previous price of $.0003 when its shares were barely trading at a price of $.0019, where over 200 million shares were traded.Have a look at the recent price action in the chart below:

2 years chart for IGNEThis nearly 500% stock returns spiked our interest in IGNE, leading us to assess whether this price run is merely short-term or an upward trend will continue in the next weeks.BusinessIGNE is a very old entity, incorporated in the State of Maryland on October 27, 1981. Its activities include the development, production, and marketing of biochemical products. The following is a list of the drugs provided in the last quarter:"Igene is a supplier of natural astaxanthin, an essential nutrient in different feed applications and a source of pigment for coloring farmed salmon species. Igene is also venturing to supply astaxanthin as a nutraceutical ingredient. Igene is focused on research and development in the areas of fermentation technology, nutrition and health and the marketing of products and applications worldwide. Igene is the developer of Aquasta(R), a natural astaxanthin product made from yeast, which is used as a source of pigment for coloring farmed salmonids." SourceBut, there is more. The company also developed proprietary processes to convert selected agricultural raw materials or feedstocks into commercially useful and cost-effective products for the food, feed, flavor, and agrochemical industries. The company was said to be using in-house scientific staff as well as several consultants.We could also read that the company has signed several agreements with other partners that created subsidiaries abroad. It was the case of Igene Chile Comercial, Ltda., which was created in Chile in 2000, or the agreement signed in 2003 with Tate & Lyle PLC to produce Aquasta(R) for the aquaculture industry. Finally, the agreement signed with Archer-Daniels-Midland Company was also remarkable, under which they manufacture and sell astaxanthin and derivative products throughout the world.Shareholders are buying - CANACCORD GENUITYWe need to draw the attention of the readers to several filings that appeared in 2017. They show that broker-dealer CANACCORD GENUITY has been acquiring a large amount of stock recently. The following is an image taken from the last document:

Filing - IGENE Biotechnology, Inc. OTCMKTS:IGNEThere are two points to make here. Firstly, the fact that shareholders are buying shares is beneficial, not only for the image of the company but also because of the demand for the stock increases, which usually leads to price appreciation. While we don't believe that this acquisition of shares is making the share price increase, it should be contributing. The second point to be made is making clear for everybody that CANACCORD GENUITY is not really buying the shares. They are the brokers of the real shareholder, which we expect to be some rich individuals/companies interested in the assets of IGNE.No new informationWhile, in reality, the company did not release any new information, the financial media reacted to the astonishing share price move. Just like us in this article, ih.advfn.com also reacted to the incredible value created by IGNE in a short period of time. Read the following text, in which 1,500% stock returns delivered by the company are highlighted: No News - IGENE Biotechnology, Inc. OTCMKTS:IGNEThere is more. The social media activity on this name has exploded up in March. We had a look at the iHub forum and found a massive amount of comments per hour. There seems to be large amount of expectations. Check some of the following comments:#884 IGNE .01+ coming reinstatement 2bil AS low floathumbleboss03/12/18 12:07:55 PM#1235shake done! nice opp for those want in!WiseTrader03/13/18 11:28:44 AM#1234IGNE thanks for the dip, the biggest toolhumbleboss03/13/18 11:27:34 AM#1233Shorty herepatrick_slam03/13/18 11:27:30 AM#1232Lol you're pathetichumbleboss03/13/18 11:25:08 AM#1231hope you took your profits or salvaged yourgonzilee03/13/18 11:25:05 AM#1230watch cant. dilution in play now. typical reinstatementgonzilee03/13/18 11:23:51 AM#1229Wheee thanks for the cheapies!BERKSHIRE AGENT03/13/18 11:23:47 AM#1228You really need a hugCatalin103/13/18 11:22:18 AM#1227B*I*N*G*O !!!hh71803/13/18 11:21:53 AM#1226look out below monthly EMA 62 shut her downTrendTrade201603/13/18 11:19:23 AM#1225So pretty much do the opposite of whatImarket1303/13/18 11:18:13 AM#1224Ha! Tough nut to crack here, hugehh71803/13/18 11:17:59 AM#1223His last pump was RNV* while it washumbleboss03/13/18 11:17:30 AM#1222Exactly lolJH Mcdough03/13/18 11:16:43 AMSourceWith the social media activity increasing, in our view, the recent increase in volume may be partially explained. However, we still believe that we are missing something on this name that we may figure out soon. Ihub Member - IGENE Biotechnology, Inc. OTCMKTS:IGNEFurthermore, there are forum members telling that the company will restate its financial statements soon. While these efforts should be positive for the stock, in our view, the stock reaction is too large. We will try to stay tuned. We also encourage readers to do the same. There may be something in the works that we don't know.Finally, please note that with the recent price volatility seen in the chart, holding a position on this name is risky. Some people have made a large amount of money here, but losses may be also large if the company does not release new information soon explaining what's going on.ConclusionCurrently trading with a market cap of $2.1 million, IGNE is an interesting story among small caps. With 1,565,404,297 shares outstanding, we could read in this old 10-k that insiders owned a large amount of stock. As a result, we believe that IGNE is a low float runner that will exhibit a lot of share price volatility. Be sure to understand how low float micro caps work, since the stock gains can be massive as well as the stock losses.Disclosure: We have no position in IGNE and have not been compensated for this article.Image courtesy of CafeCredit.com

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