Decision Diagnostics Corp (OTCMKTS:DECN) Dropping Despite Positive News
The first couple of months went pretty well for the stock of Decision Diagnostics Corp (OTCMKTS:DECN) and we saw the ticker gain a lot of altitude, breaking the 50 cent per share barrier and going further up the charts.
After climbing that high, however, DECN began to slowly slide down the charts in the end of April. Meanwhile, the financial report for the first quarter of this year didn’t manage to inspire much investor confidence. Here are some of the numbers of prime interest that were contained in its balance sheet.
- cash: $1.41 million
- current assets: $3.23 million
- current liabilities: $3.86 million
- revenues: $163 thousand
- net loss: $1.46 million
Those numbers aren’t that bad, but they are not perfect either. We see that the cash reserves have gone up significantly since the end of last year, but the current liabilities have also increased around two times. The revenues are bigger, but the net loss is still significant.
This explains why investors weren’t too excited by the financial report when it came out in the middle of last month. What is even more interesting is that even the victory in the long patent litigation with Johnson & Johnson (NYSE:JNJ) didn’t manage to provide a positive movement for DECN.
The victory was announced on June 2 and we saw the ticker slide 2% in the same session. The next day saw DECN drop another 11.56% in value and close at 26 cents per share. Trading was rather slow and the 405 thousand shares that changed their owners generated $109 thousand in daily trade value.
The negative sentiment can still be felt in today’s early trading so you should be sure to do your due diligence and weigh out the risks before putting any money on the line.
