diaDexus, Inc. (OTCMKTS:DDXS) Rises On A “Strong Buy” Recommendation
diaDexus, Inc. (OTCMKTS:DDXS) is another company from the OTC Markets bandwagon of promising bets, as they have rather good financials, actual products and pretty good revenue. All they need at this moment is to make their business profitable and take better care for their liabilities.
We haven’t written about DDXS for a while, but they are worth your consideration even though they remain a risky stock. The company is working hard in order to improve its financial state and for now it seems that their efforts are paying of. However, how long will it take for them to become profitable and have better growth in price that moves on its own and doesn’t rely on recommendations?
The stock of DDXS has been climbing the charts vigorously since the end of 2011 when their price was very low and things quieted down only on 2 occasions. Once in the beginning of 2012 and once in the end of the year when their stock’s price had 2 longer periods of going in a southern direction. Since the beginning of this year, however, the direction in which their stock price is moving has significantly shifted more in an upward direction and they are gathering cents in value faster.
Even though they have the occasional sessions ending in the red the last 3 months of trading went by with the price of DDXS moving in a seemingly straight line, regaining previous positions after dropping hard. Unlike InVivo Therapeutics Holdings Corporation (OTCBB:NVIV), whose last 3 months were a great race to the top DDXS seemed like it was going nowhere until yesterday.
Yesterday the price of DDXS‘s stock jumped high after it gapped up from the previous day’s $0.81 and opened at $0.94. Even though DDXS is one of the quiet tickers in the OTC Markets with an average volume of 39 thousand shares yesterday they were traded like mad. A total of 2.9 million shares switched hands, mainly in the afternoon, but that didn’t manage to push their price down.
In fact they finished the day with a big gain of 25% after the long period of going nowhere. Their trade value didn’t go above $120 thousand in the last month, but the combination of the upward movement in price combined with the massive amount of traded shares yesterday managed to generate a $2.95 million trade value for the day.
Let’s take a look at what the actual financial state of the company is according to their quarterly report for Q1 this year that was filed with the SEC.
- cash: $12 million
- current liabilities: $4.5 million
- total liabilities: $12 million
- revenue: $5.5 million
- net loss: $1.1 million
It seems they are doing pretty fine and considering the last time we wrote about them back in 2012 when they had improved from their previous report, they are doing pretty good with this one, but they just need to put in a little more effort. Even though they are a fairly good investment choice be sure to do your due diligence and weigh out the risks for yourself.
Another medical company that livened up yesterday was Affymax, Inc. (OTCMKTS:AFFY), who at the moment are well positioned with a 13% gain at $1.33. They are awaiting the investigation in which Takeda an the FDA are cooperating in order to figure out the causes of the 3 deaths that their drug OMONTYS has allegedly caused. Initial speculations are that due to the fact that the 3 fatalities occurred in dialysis centers that were all operated by Fresenius Medical Care AG & Co. (ADR) (NYSE:FMS) and may not be caused by the drug itself, but by the way it is administered.
