diaDexus, Inc. (OTCMKTS:DDXS) Keeps Heading Up
Ever since late-July the stock of the biotech company diaDexus, Inc. (OTCMKTS:DDXS) has been climbing further and further up the stockchart despite suffering through a couple of corrections. Yesterday the ticker did another major jump when it added 14% and closed at $1.85. The company hasn’t tested such high price levels for the past 5 years and it may start to affect its performance if traders decide to take profits.
The strong support shown by its shareholders has not been facilitated by a paid pump campaign as is often the case when dealing with pennystocks. The last email touts for the company came on August 12 and were distributed for free as an attempt from the newsletters to improve their track record. So with no artificial hype boosting the stock price to disproportionate heights the current uptrend has been possible thanks to DDXS‘s steadily improving financial results.
For the quarter ending June 30 they disclosed the following numbers:
- $11.9 million cash
- $16 million total current assets
- $4 million total current liabilities
- $6.2 million revenues
- $446 thousand net loss
Almost every aspect of the financial report displayed better results. Revenues have been increasing for the past 3 years, net loss has been shrinking and their cash position is large enough to sustain further growth of their operations.
DDXS are planning to increase the marketing of their core product for the US – the PLAC Test ELISA Kit. It is the only FDA-approved blood test used to determine both coronary heart disease and atherosclerosis-related ischemic stroke. The test is also used in two clinical Phase III trials by GlaxoSmithKline the results of which are expected in October. The company may have to deal with the competition when some of their patents expire in 2016. Also some rather cheap warrants are outstanding with an average exercise price of $0.29. The good news is that they amount to only 649 thousand shares.
Another stable medical company – Provectus Pharmaceutical, Inc. (OTCMKTS:PVCT) is still managing to keep its stock above the $1 mark adding close to 3% yesterday and closing at $1.04. Unlike them Plandai Biotechnology Inc (OTCMKTS:PLPL) has been the target of numerous pump campaigns with another one initiated just a day ago. Remember that doing your own due diligence is paramount when dealing with any penny stock company and even more so with pumped stocks.
