Sanomedics Intl Hldg (OTCMKTS:SIMH) Slumps Again

It seems the tables may have turned for Sanomedics International Holdings, Inc. (OTCMKTS:SIMH). Following the spectacular trip the share price took from one cent per share to an intra-day high of $0.60, SIMH has fallen into a pattern of a big red dip, followed by a minor bounce, then another big red session. Yesterday the ticker dropped 18% to a close of $0.05 per share, on slightly faded volume of 12 million shares traded.

We have been covering the company since it first shot to the top of the biggest OTC daily movers. SIMH is the maker of the Caregiver contact-free thermometer. After the CDC in Atlanta ordered just under 100 units of the thermoteter, SIMH ripped up the charts. However, the percentile increase in share price of over 2000% within two sessions proved unsustainable and the price started tumbling back down.

There could be further correction, given the new information that traders now have. The company’s last reported issued and outstanding share number at the time of the October 10 price surge was 18 million common shares. As we previously wrote, it was highly unlikely that this number was current, considering SIMH traded 31 million shares on Oct 15.

The company’s latest filing from Tuesday contains a more current outstanding shares figure – 33.8 million common shares as of October 13. This means that SIMH diluted its common stock by about 90% within two months.

Additionally, the company’s Twitter account is still used to disseminate misinformation and statements that are simply not true. A new tweet made yesterday states that “There is only ONE Clinical Grade Non Contact Thermometer”, and it is the company’s Caregiver. This statement is in sharp contrast with the existence of clinical infrared contact-free thermometers produced by companies such as VeraTemp, TempIR and Santa Medical.