Ampliphi Biosciences Corp (OTCMKTS:APHB) Gets Bashed To Pieces
Ampliphi Biosciences Corp (OTCMKTS:APHB) lost 11.66% of its market value yesterday, after a popular online stock commenter threw some negativity its way.
Truth be told, Seeking Alpha columnist The Capitalist Pig did make some valid points. Chief Science Officer, Dr. David Harper leaving APHB would not bode well for the company. However, it would probably be wise to at least wait for an official filing or press release to hit the web, before one decides that all hope is lost and rushes off to sell APHB all of his shares.
After all, the developments surrounding the company up to this point in time have been positive. Due diligence on the APHB reveals a picture much better than one would expect from a company that is struggling with the first stages of costly research:
- cash – $16.6 million
- current assets – $17 million
- current liabilities – $2.1 million
- revenues – $102 thousand
- net loss – $14.5 million
True, the net loss APHB suffered in the last quarter alone is worrying – but on the other hand, APHB seems to have enough cash on hand to last it a while, and its short term debt seems manageable. Which is more than many other companies in the same pharmaceutical branch of the OTC Markets can claim.
Still, that does not mean that investors can afford to relax when dealing with APHB, because it does have more than its fair share of shortcomings. The company’s latest financial report stated, up to this point APHB has “primarily financed [their] operations through the sale and issuance of convertible notes and the private placement of equity securities”, and as a result of its activities to date it has an accumulated deficit of a staggering $376 MILLION.
Another serious point of concern for investor value that should definitely be taken into account is APHB‘s tendency to go overboard with the issuance of Series B redeemable convertible preferred stock. Each of those can be converted into 10 shares of common stock – and if the company’s filings are any indication, there are quite a few of them outstanding, and some were issued at prices significantly lower than their actual market worth at the time.
Long story short – there’s currently no way to tell if APHB‘s situation is as grim as online commenters make it out to be – but that doesn’t mean that investors who wish to make money from this ticker can afford to take a breather just yet.
