PositiveID Corp (OTCMKTS:PSID) Jumps On Touts

PositiveID Corp (OTCMKTS:PSID) added another 13.81% last Friday, when a report touting its stock cropped up in its newsfeed.

Said “report” claimed that “the long term benefit of this [PISD’s latest] acquisition should more than outweigh the short term issues”. Essentially the report was optimistic about the future, in spite of the possibility that the ride “in the short term it may be a little bumpy”.

A careful look at the whole picture after some serious due diligence is done determines that that’s something of an understatement. With more than $500 thousand worth of new debt paid in the form of preferred shares of convertible stock, the ride may become more than a bit rough.

In fact, it wouldn’t be surprising to see the ticker plummet right back down to the bottom of the charts, once the temptation to make a profit becomes too great for the noteholders to resist and the opportunity presents itself.

Since various entities, such as financialstrend.com and microcapdaily.com, keep touting PSID on a semi-regular basis, it’s more than a bit likely that an opportunity to do so will present itself before too long.

Now, this is not to say that opportunistic traders can’t or won’t make money trading PSID in the future. What it does mean is that said enterprising investors could end up in quite a pickle if they let their guard down for even a second, or even if they just end up being unlucky.