In last week of June, the stock price of PositiveID Corp (OTCMKTS:PSID) spiked to a new eight month high of close to 5 cents a share. The ticker failed to sustain at these levels for long and finished the months with strong gains surging from less than $0.02 to all way to more than $0.04. What was the reason behind the sharp upsurge in PSID stock?
PositiveID made substantial progress with the development of handheld prototype PCR ‘pathogen detection system’ that the company calls as Firefly Dx. It released a mid-year update highlighting the most important events that materialized since the start of year. The update failed to get a ecstatic response from the market and the stock closed in deep red after the news.
The latest surge in PositiveID stock is more due to the numerous paid pumps and emails released in last some time. These promotional campaigns succeeded in creating immense artificial hype surrounding the company. The paid promotions are common things in the industry of penny stocks. However, it is unusual to witness a company paying for its own promotion, and PositiveID has been doing exactly same.
PositiveID Corp (OTCMKTS:PSID) engaged The Wealthy Biotech Trader and paid it compensation amount of $25,000 per month and a convertible note worth $62,500 to tout company’s stock. Even the other outfits SmallCapCrowd and OTPick received 500,000 restricted shares to promote PSID. Another outfit firm, the Daily Stock Reporter featured PositiveID in one of their PRs. They received compensation of $25,000 from Hanover Financial Services.
It appears that PositiveID is trying to hide its dismal financials by opting for promotional campaigns. As per the latest report, the company had $598,000 in cash, $608,000 in current assets and $9.7 million as current liabilities. The revenue in quarter was $131,000.
In last trading session, the stock price of PSID declined more than 12% to close the trading session at $0.0278. The decline came at a share volume of 13.97 million compared to average share volume of 10.46 million.