Guided Therapeutics Inc (OTCBB:GTHP) was a massive decliner during Monday’s trading session declining by 21% on above average volumes, which were 5.5 times the average turnover. The formation of lower tops and lower bottoms on the charts is indicative that bears are using rallies in the stock as a selling opportunity. Altius currently trades below all important moving averages. The index measuring relative strength continues to slide lower and is a cause for concern. Momentum indicators clearly suggest that bears have the upper hand at the moment. The stock hit a fresh 52-week low during yesterday’s trading session, which is bearish.
The shares of Guided Therapeutics Inc (OTCBB:GTHP) are finding no respite even as the company has published a series of encouraging updates. Earlier this month, the company proudly announced that it has shipped four units of LuViva Advanced Cervical Scan and 10,000 Cervical Guides disposables to the Turkish Ministry of Health (MOH) as per the contract.
Earned a contract
The shipped units are part of $14 million contract as per which the company is supposed to conclude the shipping of a total 25 LuViva units and 40,000 disposable Cervical Guides before the year’s end. Also, the contract stipulated that 150 LuViva units and 275,000 disposable Cervical Guides are needed to be shipped by the company. The contract as a whole stretches to a period of four years, which calls for 1.1 million disposable Cervical Guides and 375 LuViva units.
Following the announcement of the details of the contract, Guided Therapeutics Inc (OTCBB:GTHP) appeared confident about its business model. Also, it stated that the contract justifies the company’s strategy to work with government and secure big orders.
Agreement with FDA
Apart from this, the company reported another development stating that it has signed a general agreement with the U.S. Food and Drug Administration (FDA), as per which, it is reviewing a plan to submit an approvable application for its LuViva Advanced Cervical Scan. The company added that the plan to gather additional patient data in connection with LuViva will be concluded within the next two to three months.
However, such positive developments failed to thrill investors, who seemed to paying more attention to the company’s gloomy financial report for the third quarter. For the period ended on September, the company reported a cash balance of $172,000. The company’s current liabilities are worth $4.96 million while its current assets are at $2.28 million. Its working capital is negative at $2.7 million, whereas its accumulated deficit has crossed the level of $120 million.
The stock price of Guided Therapeutics Inc (OTCBB:GTHP) shed as much as 21.40% during the previous trading session to close at $0.0169.