Guided Therapeutics, Inc. (OTCBB:GTHP) Crushed By Bad News
We rarely see a medical company in the state of Guided Therapeutics, Inc. (OTCBB:GTHP) in the OTC Markets. They seem to be way ahead in the development of their product and are registering revenues. The bad thing is that they are yet to start operating at a profit and the latest news suggest that we might have to wait a little bit longer until that happens.
Unlike most OTC companies GTHP don’t waste their time prating about things that aren’t closely connected with their development. Instead most of the headlines about the company are from reports that GTHP is filing with the SEC concerning the progress that they are making with their research.
One headline from yesterday, however, wasn’t really optimistic and it managed to bring the price of the company stock down on a high volume of traded stock. The press release was concerning questions from the FDA including the cleaning, disinfection, as well as the optics of the company’s LuViva® advanced cervical scan.
This in term meant that the pre-market approval (PMA) of the product cannot be issued and it might take a bit longer to be obtained due to the fact that GTHP have to address the questions in order to get it. We reckon some investors didn’t take the news very well and this is exactly what the charts show.
The session started with an immediate drop in price on the heavy volume of stock generated by people trying to shed their holdings. It reached as low as $0.673, but climbed a bit higher in a matter of minutes. There was another dip right after 10:00 AM followed by a comeback.
After the dumping of stock stopped at around 11:00 AM the ticker’s price stabilized and continued to move in a seemingly straight line through the rest of the day closing the session with a 15% loss at $0.57. The total amount of shares that had switched hands was well above GTHP‘s average of 48 thousand with a massive 1.6 million that helped generate $892 thousand in trade value.
As mentioned before GTHP is one of the rare medical companies in the OTC Markets actually generating revenue. The only trouble at the moment is managing to make it at a profit. Let’s take a quick moment to check the numbers of prime interest from their Q2 report, that are backing up the company’s $37 million market cap.
- cash: $1.98 million
- total assets: $4.39 million
- total current liabilities: $1.6 million
- total liabilities: $2.65 million
- revenue: $222 thousand
- net loss: $1.75 million
As you can see they have decent financials and the liabilities of the company aren’t bigger than the total assets, which we consider a good sign. The revenue is little compared to the recorded net loss, but do have in mind that half of the net loss is due to research and development. Also, don’t forget that GTHP have already issued a receipt for $3 million to the Turkish Ministry of Health for LuViva® devices and disposable sales.
Be sure that at the moment GTHP‘s stock is in a very delicate situation and this is why we advise you to do your due diligence and weigh out the risks before jumping in on this one.
On the other hand, another medical stock is gathering momentum in an upward direction. We are speaking of InVivo Therapeutics Holdings Corp. (OTCBB:NVIV), who gained 14% yesterday on a big volume that helped generate a trade value of $2.8 million for the session putting them in the top of our list of most traded OTC stocks.
The situation with Affymax, Inc. (OTCMKTS:AFFY) isn’t that rosy, because we haven’t heard any news about the OMONTYS investigation led by the FDA and Takeda.
