Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) Climbing Up
The stock of Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) was going through a tough period since the beginning of the month. Since the last time we covered them, however, they managed to close last week’s 2 final sessions in the green and are continuing their ascent this week.
The percentile movements that the ticker is making are below 10% and the total gain recorded over the last 3 sessions is estimated at about 21%. The volumes of traded stock are decent, but still lower than the ones recorded while the stock’s price was falling.
Yesterday, BZNE closed with another 7.84% gain, going from $0.51 to $0.55 on a volume 2 times the ticker’s average. The total amount of shares that switched hands in the session was estimated at 2.75 million and helped generate $1.4 million in dollar volume.
The upward run was triggered by a review from October 10, about several biotech stocks from which Dr. Phillip Frost owns a significant amount of shares, that turned out to be successful. The review features BZNE alongside the biggest winner of Dr. Frost, Opko Health, Inc. (NYSE:OPK), which trades above $10 at the moment and a few other smaller success stories.
However, when you compare the financial statements that both companies are filing the parralel between them starts to fade away. Here is what BZNE recorded in Q2 this year.
- cash: $354 thousand
- total current assets: $3.2 million
- total current liabilities: $10 million
- revenue: $1.95 million
- net loss: $745 thousand
What is even worse is the fact that BZNE recorded more than 2 times less in revenue for Q2 of this year than it did for last, while the net loss has remained almost the same, even a little bit bigger. Furthermore, there is too little definitive information at the moment to back up a prolongued climb and if the hype remains to lay on the shoulders of reviews we may see a serious correction soon.
The amount of traded shares isn’t that small either and if we happen to see a dumping fiasco after a small increase in price, things will most definately turn sour with such speed that you might be left with significant losses.
Given all that, we would advise you to do a lot of due diligence, weigh out the risks and proceed with caution if you have any thoughts of investing in BZNE.
Yesterday’s session wasn’t one of the hottest, when it comes to dollar volume. Even Globalstar, Inc. (OTCMKTS:GSAT), who are at the top of the list of tickers with highest trade values registered $3.9 million in trade value, compared to the above $20 million before the weekend.
And while GSAT slid a little bit lower in price, SK3 Group, Inc. (OTCMKTS:SKTO) gained another 44%, closing the session at $0.0143.
