At the end of last week, small cap stocks Senesco Technologies, Inc (OTCBB: SNTI), VolitionRX Ltd (OTCMKTS: VNRX) and Micromem Technologies Inc (OTCBB: MMTIF) were all trending upwards – ending up 13.65%, 8.73% and 7.61%, respectively, on Friday. However, it's a new trading week with the last two trading days for the year. So what direction will these three small caps head in for the end of this year and into next year? Here is a quick look to help you decide on a trading or investment strategy:
Senesco Technologies, Inc (OTCBB: SNTI) Announces a MergerSmall cap Senesco Technologies is a clinical-stage biotech company specializing in cancer therapeutics who's proprietary gene regulation technology has demonstrated the ability to kill cancer cells and protect healthy cells from premature death in disease models. On Friday, Senesco Technologies rose 13.65% to $5.66 for a market cap of $17.36 million plus SNTI is down 53.6% since last August and down 90.4% over the past five years according to Google Finance.
What's the Catch With Senesco Technologies, Inc? According to various disclosures, a promoter was paid a cash fee by someone for three (3) months of investor awareness services. Last Thursday, RedChip Companies, Inc, an international small-cap research, investor relations and media company, announced that "The RedChip Money Report: Small Stocks Big Money" television program would be featuring Senesco Technologies and interviewing the Chairman with the episode being broadcasted until Sunday. That probably got the stock moving in time for this morning's announcement that the company had agreed to terms and executed a non-binding Letter of Intent to merge with Fabrus, Inc, a privately-held, biotechnology company focused on expanding the clinical impact of antibodies by addressing drug targets resistant to traditional antibody discovery methods. Fabrus has two collaborations in place with large pharma and biotech companies to discover antibodies to their targets plus they have an internal pipeline that includes next generation antibodies targeting renal cell carcinoma and inflammation. Under the agreement, present shareholders of Senesco Technologies and Fabrus will each receive approximately 50% of the combined companies and the parties expect to sign a definitive agreement in early 2014. However, investors should be aware that a quick a look at Senesco Technologies' financials reveal revenues of $100k (most recent reported quarter), zero, zero and zero for the past four quarters along with net losses of $1,784k (most recent reported quarter), $1,931k, $837k and $1,270k. At the end of September, Senesco Technologies had $789k in cash to cover $3,598k in current liabilities. Those financials are not overly excited but they would be in line with those of many other small cap biotech stocks.
VolitionRX Ltd (OTCMKTS: VNRX) Hires an Investor Relations FirmSmall cap VolitionRX Ltd is a life sciences company focused on developing blood-based diagnostic tests for different types of cancer. On Friday, VolitionRX Ltd rose 8.73% to $2.74 for a market cap of $28.21 million plus VNRX is down 21.7% since last March and up 82.7% since October 2011 according to Google Finance.
What's the Catch With VolitionRX Ltd? According to various disclosures, no transactions have occurred to mention VolitionRX Ltd in various investment newsletters. However and last Monday, VolitionRX Ltd announced that it had engaged the investor relations services of MissionIR – meaning the stock is bound to get more attention. At the beginning of December, VolitionRX Ltd announced new data showing that when two of its proprietary NuQ® assays are combined into one test, they can achieve 85% detection rates at 85% specificity for colorectal cancer and detect more than 50% of precancerous polyps. However, that announcement did not move the stock much. A quick look at VolitionRX Ltd's financials reveals no revenues; net losses of $926k (most recent reported quarter), $1,047k, $908k and $1,477k for the past four quarters; and $473k in cash to cover $585k in total current liabilities and $1,275k in other liabilities at the end of last September. Again, those financials may not be any worst than those of other small cap biotech stocks and the hiring of an investor relations firm is bound to get shares more attention – something that will at least benefit traders.
Micromem Technologies Inc (OTCBB: MMTIF) Says It Has Development Contracts in Excess of $30,000,000Small cap Micromem Technologies is a technology company focused on magnetic sensor applications. On Friday, Micromem Technologies rose 7.61% to $0.990 for a market cap of $151.60 million plus MMTIF is up 421% since the start of the year and up 41.4% over the past five years according to Google Finance.
What's the Catch With Micromem Technologies Inc? According to various disclosures, no transactions have occurred to mention Micromem Technologies in various investment newsletters. In mid-September, Micromem Technologies gave a shareholder update to remind investors about it had already announced client funded product development contracts with two companies in excess of $30,000,000. Micromem Technologies has already collected payments against this and other projects and the company will continue to invoice against completion of each milestone over the next 10 to 12 months. However, a quick look at Micromem Technologies' financials on Google Finance reveals no revenues; net losses of $0.26M (most recent reported quarter), $0.02M and $0.42M and net income of $1.61M for the past four quarters; and had $0.08M in cash to cover $1.27M in current liabilities at the end of last July. So maybe investors should wait for some of that $30,000,000+ worth of client funded product development contracts shows up on the top and bottom lines.
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