Gediminas Jasionis

Rumors Of Potential Create Interest In PositiveID Corporation (NASDAQ:PSID)

by Gediminas Jasionis June 23, 2010
PSID_chart.pngPositiveID Corporation (NASDAQ:PSID, PSID message board) is looking at somewhat improved price action, as speculations and rumors create buying volume.

Tuesday delivered some interesting progress for this penny stock. It had only a modest 3.88% gain at the end of day, but demonstrated that people are following the news closely and are relatively susceptive to message board talks.

The latest rumors were derived from Australian government's decision to make it mandatory for all citizens to have their medical records related to a personal 16 digit electronic health number on the new e-health system that is being developed. PositiveID holds the potential to deliver the technology required for this project, but their financials and their capacity limitation stand in the way of even trying.

Other companies have more chances to use the opportunity, and obstacles also arise from the PSID's questionable ability to produce the possible amounts required. And on top of that, there is yet no official announcement from them confirming the possibility of Australian government even looking at their products in the first place.

positiveid_logo.jpgThe price reaction is still vague, expressing the rising interest in the trading volume, but also showing people are not willing to pay more for the stock covered with uncertainties. Furthermore, the current financial situation of PositiveID is rather unfavorable, causing them to rely on stock issuing as a source for funds, while trying to deliver fully functioning products.

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