PositiveID Corp. (OTCMKTS:PSID) Drops Even Lower

PositiveID Corp. (OTCMKTS:PSID) had another nasty 21.31% tumble yesterday, as an online commenter announced that it has reached a peak of shorter activity.

According to hintsnewsnetwork, PSID has suffered an increase of 2837.06% in short interest, and it now takes short sellers 0 days to cover their PSID’s short positions – which could account for the stock’s under-performance. Not even the news that PSID will be showing off its Caregiver at the upcoming Biodefense World Summit at Hilton Baltimore could convince investors to commit after they heard about that frightful statistic – and, truth be told, their reaction was natural.

Then again, if those terrible numbers are accurate, the drop could have been caused by the very short selling activity that we were just talking about.

What’s more, one must also not discount the possibility that it’s not angst or short selling that caused the crash. After all, there’s also the possibility that the company’s past stock-relates shenanigans are coming back to haunt investor value – and PSID more than enough toxic debt to cause its investors quite a bit of grief.

Let’s just say that less than two weeks ago, the company took on $624 thousand worth of debt that converts into shares of PSID common stock at a price “equal to the lower of (i) $0.022 per share or (ii) 65 % of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTC Markets exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future, for the fifteen prior trading days including the day upon which a Notice of Conversion is received by the Company”.

So in the end we can’t know for certain what caused yesterday’s crash. There are just so many factors that could have dragged the ticker kicking and screaming towards the bottom of the charts that it is impossible to tell which one was came in play this time around.

Investors should really take that fact into consideration when making up their minds about PSID.