Decision Diagnostics Corp. (OTCBB: DECN) Soars After Favorable Court Ruling

by · November 18, 2013

DECNchart.pngInvestors who stayed with Decision Diagnostics Corp. (OTCBB:DECN) must have congratulated themselves for making the right decision. On November 4 the U.S. Federal Circuit Court of Appeals sustained DECN‘s appeal, reversed a ruling made by a lower court and more importantly ruled that the Johnson & Johnson Lifescan patent rights were subject to patent exhaustion thus removing the major hurdle that stood in DECN‘s path.

Decision Diagnostics are the sales agent for the Shasta GenStrip, a glucose testing strip that is designed to work with the testing meter produced by Johnson & Johnson. With a product sold at a considerably lower price than the J&J own testing strips almost ensured them a high commercial success. Well, at least that was before J&J’s decision to sue them for patent infringement. Now with most of the litigation cleared away and renewed Genstrip shipments DECN are expecting yearly revenues of $250 million.

Even if only a fraction of this sum is actually achieved it would put them ahead from most of the other medical pennystocks. As a result their stock has started to make a step climb upwards and in early trading today has reached $0.9 per share. Although it will be some time before the financials of the company start to reflect the current increase in sales it is still worth it to look at their fundamentals. Last Friday DECN filed the quarterly report for the period ending September 30 and it contained:

  • $41 thousand cash
  • $4.6 million total current assets
  • $4.1 million total current liabilities
  • $304 thousand revenues
  • $771 thousand net loss

They have a positive working capital but the amount of the net loss is still considerable. On October 29 the company was able to significantly improve its cash reserves by entering into a $12.5 million revolving credit facility with Alpha Credit Resources, LLC, a division of Platinum Credit Management LP. Unlike the usual credit deals we see in the pennystock world this credit will feature no equity conversion and thus spare investors from suffering any dilution.5PGLOchart1.png

Last Friday Sovereign Lithium Inc (OTCMKTS:SLCO) got suspended by the SEC just a day after a paper mailer touting the company was revealed. SLCO is no stranger to paid pumps, in fact, under their previous name and ticker Great American Energy Inc. (SRBL) they were among the most heavily pumped tickers for 2013. On the other hand the pump for Pan Global Corp. (OTCMKTS:PGLO) is still going on with new email alerts sent over the weekend. In early trading today the stock is 22% up trading for $0.7 per share.

Tags:

You may also like...

Follow: