Ceres, Inc. (NASDAQ:CERE) Erased the Losses in One Strike

[[tagnumber 0]]A few weeks after Ceres, Inc. (NASDAQ:CERE) announced a new equity offering that diluted shareholders the company‘s stock recovered all the losses in just one session yesterday, and even hit a new 52–week high. CERE said it received a milestone patent for its crops development technology.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]CERE gained over 116% during the last trading session and closed the market at $2.06. Total trading volume was a record as well with over 22 million traded shares. Technically, the chart suggests that CERE could continue the rally by the end of the week as the volume of shorted shares also exploded yesterday.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]The company‘s latest quarter report was not very promising, although it looked like sales increased significantly. Research and government grants make up for the largest part of CERE revenues and the increase came from the recognition of revenue as work on various project had been completed.[[tagnumber 10]][[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]The news about the patent for the iCODE multi–gene trait development system could open the way for much more licensing and research revenue, however, costs are expected to grow as well as the company continues the restructuring of the business towards food and forage development technologies.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]The problem of the funding limits the stock growth as CERE operating cashflows are negative and it will keep accumulating losses for the foreseeable future. The latest round of equity financing took place at the end of July. The company raised around $1.5 million and diluted the shareholders with 1,2 million new shares. In addition, investors were also issued warrants to purchase another 1,2 million shares at an exercised price of $1.62 per share.[[tagnumber 1]] [[tagnumber 20]] [[tagnumber 1]]