Advanced Medical Isotope Corp. (OTCMKTS:ADMD) is a company that has recently been facing sever fluctuations in stock. Investors’ sees disconnect between the between the financial report issued by the company and the news surrounding the company. The company develops brachytherapy devices and isotopes used in medical diagnostics. Advanced Medical is amongst the leading contenders of its field and any news that points towards an increase in sales can push the stocks up.
Unfortunately, the company does not have a good financial standing to keep its stock high up; it barely has enough cash for new projects. The last financial report of the company indicated:
- $525 in cash.
- A deficit of $9.5million.
- No revenues.
- $866 thousand in losses.
Buyers may go for the company’s stock based on latest news and will certainly be attracted by the falling price, but once they look at the financial reports they might just become panicky to sell their shares again.
The company had been stuck below the triple zero mark last year, but a number of announcements and news from the company lead to the ticker rising. The last four weeks have seen the stock rising, with small decline in the middle, to reach its current value of $0.0035. Much of this hype comes from news released by the company last December, when it announced that its Y-90 radio gel device was undergoing approval from the FDA.
Once the product enters market, it can help the company generate its much-needed finances. Currently, the company has been surviving by dilution of its stock and conversion of debt. The number of outstanding stocks has tripled over the past year and a further 208 million shares were added by the company. Even if the FDA approves the product of the company, there is still the question of commercializing and marketing the product. Advanced Medical Isotope Corp. (OTCMKTS:ADMD) lacks the cash needed for this purpose and might just have to take a loan. Little is expected to change in the value of this stock.