PositiveID Corp. (OTCMKTS:PSID) Gets Another Boost
PositiveID Corp. (OTCMKTS:PSID) added another 21.31% to its market value after its CEO got interviewed by SmallCapVoice.com, in spite of the fact that he told the same old story all over again.
As is the norm with PSID, William J. Caragol, Chairman and CEO of PositiveID kept heaping praise on the company’s product and kept referring to it as a unique and indispensable necessity, in spite of the fact that in reality, it is neither innovative nor essential.
It’s somewhat odd that investors seem to jump every time the company starts spewing unsubstantiated claims about the Caregiver, in spite of the fact that it, like PSID, is obviously overhyped.
Experience teaches, hype never lasts, and when it loses its potency, the ticker in question falls, unless it has something serious to support it.
Unfortunately for PSID enthusiasts and supporters, there doesn’t seem to be anything else going for PSID now. As we’ve mentioned on occasion in our previous articles covering the company, its financial sheets present a pretty bleak picture:
- cash – $672 thousand
- total current assets – $767 thousand
- total current liabilities – $10.8 million
- quarterly revenues – $51 thousand
- quarterly net loss – $2.9 million
Sure, some people are hoping that the company’s most recent acquisition brought in some good value – but until PSID actually makes a filing on the matter, there’s no real way to know. All we know is that it added another $750 thousand worth of debt to the already overburdened company, $500 thousand of which are convertible into shares of PSID preferred stock.
That’s $500 thousand worth of potential shares threatening investor value – and, just to be on the clear side – this is not the first time dilution has taken its toll. Suffice it to say that as of November 10, 2014 PSID had 159 million shares outstanding. As of August 7, 2015 the company had as many as 350 MILLION shares outstanding. Who knows how many shares there are currently?
This tendency towards heavy dilution, as well as PSID‘s various other dubious activities, is the reason why investors should be wary when dealing with it, as there is no telling when one of the company’s multitude of faults will drag the ticker to the bottom of the charts.
