Advanced Medical Isotope Corp (OTCMKTS:ADMD) Jumps On News
Advanced Medical Isotope Corp (OTCMKTS:ADMD) suddenly shot up skyward once again, when it announced that even more of its share structure issues.
Investors jumped on the stock yesterday, as news hit that apparently, in Nov. And Dec. 2014, note holders were issued more stock than they should have been due to a miscalculation, and the problem is being fixed right now.
As evidenced by the 203 million trade volume, long term investors and opportunistic traders alike got stirred into motion because of the news. But was jumping on the ADMD hype train prudent?
True enough, ADMD claims that it has made some significant steps towards clearing its horrible debt situation. Unfortunately, as the company keeps pointing out “It is anticipated that these items will be reflected in the company’s 2nd quarter 10-Q filing.”
Until that moment comes to pass, the company’s actual achievements with regard to improving its horrible share structure will remain unclear.
Thus, investors who wish to do real due diligence are still left with one good source – the company’s latest financial report, for the fiscal year ended Dec. 31 2014. And, as we’ve discussed before, that report shows some pretty horrendous figures:
- Cash – $203 (NUMBER NOT IN THOUSANDS)
- Total current assets – $30 thousand
- Total Assets – $90 thousand
- Total current liabilities – $20.2 million
- Annual Sales – $24 thousand
- Loss from operations – $1.9 million
- Annual Net Loss – $18 million
So even if the company re-negotiates its debt, ADMD is still going to need funding to dig itself out of the financial hole it is presently in. Currently, the company’s management team seems determined to not ruin investor value even further and to fix some of the damage done by reckless and dubious moves in the not so distant past. But how long will that last?
Furthermore, investors should also consider the fact that, by all accounts, it doesn’t seem like all of ADMD debt has been renegotiated. Dumping could still occur at any moment. With this in mind – let the buyer be ware.
