PositiveID Corp. (OTCMKTS:PSID) Sliced by a Third
Yesterday marked another turbulent session for PositiveID Corp. (OTCMKTS:PSID). The company came down hard after its latest green spike and trundled over 31% down, completely wiping Friday’s gains and then some. Share volume was significantly higher as well, with 27 million changing hands.
After a six-month, steady descent from $0.10 to $0.03, October brought a dramatic change for PSID. With the first detection of ebola on US soil, panic levels were running high and escalated further with the first death caused by the virus in America. The company’s timing was impeccable, as PSID started appearing in various media and talking about its Firefly Dx product. The Firefly is a portable, point-of-need biological detection device that could return ebola testing results within as little as 20 minutes.
The catch is, the device is not something that sprang up overnight and it’s not ready to market either. According to PSID‘s president the Firefly has been in development for a year and a half and the device will likely be out in the field for testing in Q3 of 2015 – or roughly 12 months from now.
How a point in time so far removed from the current ebola issue could be pertinent to the situation at hand is not too clear. And the ebola issue is the obvious reason why PSID sprang into heavy volume trading come October 1. While some claim that the Firefly is a much-needed tool even if ebola has long been dealt with when the device cleared for mass production and use, there’s no denying the effect the ebola craze had on PSID stock or that the Firefly was a known thing but investors were hardly excited about it before, letting PSID slide heavily in Q2 and Q3.
As we previously mentioned, PSID is currently seeking to increase its authorized shares by roughly 100% – from 470 million to 970 million. This could mean the last reported 96 million outstanding shares have long since increased in number, seeing how PSID‘s filing explains its wish to increase the AS with the continuing need to seek financing through the issuing of stock.
Considering the volatility of the stock and the heavy selling that pushes PSID down after every attempt at a sustained green run, investors are advised to do their own due diligence and research before making any decisions.
