VaxGen, Inc. (OTCMKTS:DDXS) Has a Correction Day Again
VaxGen, Inc. (OTCMKTS:DDXS) made something of a pattern this August, forming a nice trend only to correct it after several trading days. Monday was a day of reckoning for this ticker, as DDXS lost more than 10% to stand at $1.33.
At this price, one may wonder what the company’s underlying business is. DDXS is one of the biotechs that holds a cash cow department, and does not rely solely on promises of upcoming treatments. The group has an FDA-approved test, already used in the field of cardiology to diagnose the risk of heart attacks. This equipped the company with the following financials:
- $12.7 million in cash
- $4.4 million in current liabilities
- $5.5 million in Q1 revenues (13% up year-over-year)
- $1.1 million in Q1 net loss (12% down year-over-year)
DDXS was last promoted on August 12th, although stock recommendations appeared online on September 8th as well, showing that DDXS is way more solid than run-of-the-mill biotech small caps. Still, this stock has the potential to correct significantly.
On the plus side, DDXS was promoted for free, which means that it was probably taken up as a way to boost past records with a company of better quality.
Another company closely regarded by investors, Nuvilex, Inc. (OTCMKTS:NVLX) is having one of its better days, adding more than 20% to reach the 14-cent levels, after a few days in the red.
If you are looking for one of those higher-priced climbers for comparison, Liberator Medical Holdings, Inc. (OTCMKTS:LBMH) seems to be about to buck the trend, with a small drop on tentative selling this Monday. LBMH retreated to $1.84 on a loss of just half a percent on the day.
In the longer term, DDXS would meet competition after 2016 as its exclusive patent protection on its unique tests expires. Other biotech companies are also looking into ways to diagnose heart disease through blood markers, so this may put DDXS in an even tighter competitive playfield.
But all those factors work much slower than the stock price, which for now must get used to staying above the dollar levels for longer. If you cannot afford the corrections, smaller or deeper, it is best to stay away from DDXS, despite the bright recommendations. Do your own due diligence before you choose this ticker or any other that may be rising on disproportionate and artificially-induced investor interest.