Arrayit Corp (OTCMKTS:ARYC) Registers a Huge Volume Spike
Arrayit Corp (OTCMKTS:ARYC) hasn’t been the most heavily traded company on the OTC Markets. In fact, in July and during the first couple of weeks of August the dollar volume rarely exceeded $10 thousand, but a couple of events changed all that. First, on August 13 a Seeking Alpha contributor who goes by the nickname CBOE Trader published an article that listed all the advantages to be found in ARYC. His optimism clashed with the Q2 financial statement that came out the next day and that drew quite a lot of interest in the ticker, although it didn’t make for the most consistent of performances.
You can read through the article for yourself and decide whether you want to trust it or not and we’ll be sure to go through the figures found in the latest 10-Q, but before we do, we should say that the company does have something going for it. First of all, while there’s been a few name changes over the years, ARYC have never deviated from their original plan – becoming a world-wide provider of clever microarray technology that can increase the efficiency of genetic testing by cutting down the time needed for the trials by a large factor. The business plan, while clever, has no doubt been a bit difficult to understand for the average investor which could explain the negligible trading volumes from the last couple of months.
ARYC, however, have managed to establish a relatively steady stream of revenues – something of a struggle for quite a lot of their small cap counterparts. As we hinted in the first paragraph, however, the latest financial statement also gives out some weaknesses. Here’s a summary of the most important figures:
- cash: $11 thousand
- current assets: $580 thousand
- current liabilities: $7.9 million
- quarterly revenue: $602 thousand
- quarterly net loss: $72 thousand
More worryingly, when you compare the results above with the ones registered during the corresponding quarter of 2012, you’ll see that the revenues have decreased by about 18% and the net loss for this year has been boosted by nearly 22%. Curiously, the same aspects have actually been improved when you compare the figures for the first halves of the two years.
It’s clear that the financial results are still not consistent enough and ARYC still have some work to do before they can achieve profitability. Probably that’s why, the days following the 10-Q resulted in a somewhat hesitant stock performance. Then, on August 26, Small Cap Specialists (OTCBB Journal) tried to raise some awareness by issuing a report comprised of nothing more than a summary of the latest SEC filings and press releases. That, coupled with some optimistic developments that the company talked about sent the ticker towards the higher end of the charts and on September 24, it hit its 52-week high of $0.75. As soon as the excitement died down a bit, however, it took a plunge and between October 2 and October 11, it wiped out more than 40% of its value.
Yesterday seemed like it was going to be a pretty uneventful day but fifteen minutes before the closing bell, a new press release hit the wire informing us about the appointment of a new Director as well as the securing of some additional funding. The announcement doesn’t give us a clear picture of how much money is going to be transferred to ARYC‘s bank account but regardless of this, the ticker made an astonishing surge during the last minutes of the session and closed the day 34% above Friday’s value.
They certainly need the additional funding and the new member of the Board of Directors should bring in some expertise, but is this enough to secure any sort of long-term growth? We’ll need to wait and see. In any case, doing your own due diligence and considering the risks is something you should definitely do before putting your hard-earned cash in ARYC.
Other strong movers from yesterday include SK3 Group Inc (OTCMKTS:SKTO) who, after ending last week’s trading on a positive note, continued ascending towards the higher end of the charts and Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX) who are still fueled by the constant hype coming from the promotional emails.
