PositiveID Corp. (OTCMKTS:PSID) Revs Its Engines Again

PositiveID Corp. (OTCMKTS:PSID) managed another 19% up on Friday, more than making up for the ground it had lost the previous session. So where will it head now?

Thursday’s 12% crash was quite predictable, in spite of PSID making a PR announcement on May 26 – after all, a pullback is normal after a jump as radical as 113.56%. In fact, in light of PSID‘s current situation, it’s something of a surprise that the ticker’s fall didn’t continue for more than one session.

To elaborate on the previous statement – there are quite a few threats to investor value in store for anyone wishing to commit to PSID stock. As we have mentioned on occasion in our analysis, the company is struggling with crippling debt, and a sizable amount of its notes carry provisions allowing note holders to turn them into stock at “62.5% of the lowest VWAP during the 15 Trading Days immediately prior to the applicable amortization date”, or even “55% of the lowest VWAP during the thirty (30) Trading Days immediately prior to the applicable Conversion Date”.

That’s right, note holders could potentially get their hands on shares of PSID common stock as cheap as $0.0033. Meanwhile, PSID shares are being traded for more than a $0.013 a pop.

And, for those that were wondering – no, PSID note holders don’t seem even the least bit shy to cash in on their notes for profit. This can easily be demonstrated by comparing the company’s total shares outstanding over the past year. As of March 2015, there were 221 million shares of PSID common stock outstanding. One year later, there were a staggering 565 million SO.

Admittedly, PSID is one of the few penny stock companies in the OTC Markets pharmaceutical branch that has actually demonstrated some progress with respect to becoming a commercially viable entity lately. It is making revenues, and its science checks out, apparently – which is excellent. However, in spite of this, investors would do well to not give into hype, and only go into trades aware of the potential pitfalls that trying to make a profit out of PSID stock has for them.