PositiveID Corp (OTCMKTS:PSID) Can’t Stop Its Descent
PositiveID Corp (OTCMKTS:PSID) lost another 13.43% of its market cap on Thursday in its third bright red session in a row.
As the charts can attest, the ticker has already dipped below the $0.03 mark on heavy volume, in spite of the fact that PSID‘s latest press releases are positive and the company seems to have a lot of supporters on the message boards. So why is the price per share heading down so catastrophically?
Well, suffice it to say that the press releases may be the only positive thing to be found about PositiveID. The company sure does talk big, but so far its results can be called unsatisfactory at best. Its latest financial report, for instance, looks quite dreadful:
- Cash – $598 thousand
- current assets – $608 thousand
- current liabilities – $9.7 million
- quarterly revenues – $131 thousand
- net loss – $3.8 million
But bad as those numbers may be, it is what hides in the report’s section on PSID‘s history of dilution that is most disconcerting about the company.
Some very basic research reveals that PSID‘s shares of common stock outstanding have increased from 159 million to 262 million between November 10, 2014 and May 11, 2015. Furthermore, there is proof that most of said shares were issued as a result of toxic conversions of debt at an average price as low as $0.013.
And if that dilution statistic wasn’t bad enough, the company has been on the receiving end of so many paid pump campaigns in the last few months that it is nearly impossible to keep tabs on them all.
Long story short – PSID‘s situation looks grim, and once some due diligence is done it becomes clear that its fall is fully warranted.
