Metabolix, Inc. (NASDAQ:MBLX) Expected to Improve the Liquidity

[[tagnumber 0]]Metabolix, Inc. (NASDAQ:MBLX) share price surged out of the trading range on Monday as the company‘s stock got excessive trading volume a week after a new announcement. MBLX will issue new shares to an investor for cash over the next 30 months, yet that planned shareholder[[tagnumber 1]] dilution attracted traders to the stock this week.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]MBLX closed at $3.06 for a share yesterday while the traded number of shares was again more than ten times the average for that illiquid stock. The last close represents a gain of 7.75% and the market closed in consolidation though the daily volatility was still high. Technically, the stock has entered the overbought area, though there could be some more upside potential.[[tagnumber 2]] [[tagnumber 0]]According to MBLX latest 8–K, a wee[[tagnumber 8]]k ago the company entered into a common stock purchase agreement with an investor who has committed to purchase up to $20 million of MBLX common stock over a period of 30 months. The shares will be issued and purchased under the company‘s discretion whereby it has the right to decide when to submit a purchase notice for up to 50,000 shares to the investor.[[tagnumber 2]] [[tagnumber 0]]The terms of that agreement do not imply whether MBLX shares are over– or undervalued at the current market price as the purchase price will be set according to the market price at the time of issuance. Traders reacted positively though as that sale of new stock will not only support the company‘s cash position, but also increase the liquidity of the stock which has an average trading volume of around 43,000 shares.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]MBLX second quarter financial report confirms that stock sales are the main source of cash for the company. Last year, the management changed the focus to marketing the PHA biopolymers as specialty materials, yet product sales are still insignificant. In fact, the largest part of the company‘s revenue consists of grants, the rest represents recognized revenue from shipments to customers in previous periods.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]With the current market cap, MBLX has a remarkable price–to–sales ratio, implying that investors may see some growth potential in the stock.[[tagnumber 2]] [[tagnumber 20]] [[tagnumber 2]]