Todor Pichurov

Decision Diagnostics, Inc. (OTCBB:DECN) Surges Near Half a Dollar

by Todor Pichurov September 17, 2013
DECN_chart.pngYesterday's session saw the stock of Decision Diagnostics, Inc. (OTCBB:DECN, DECN message board) gain 60% and close at $0.48 per share. DECN was having a strong month but the last session added more to the share price than all September sessions so far combined.

The company focus is medical products, with DECN developing both smartphone apps and physical medical supplies. The company's product of primary interest however is their testing strips for diabetes patients marketed under the Genstrip name.

The company encroached on Johnson & Johnson (J&J) territory, as they were the name dominating the market with their diagnostic device using their own testing strips. In late 2011 J&J filed a suit for infringement, as DECN's strips were to be used in J&J's device. The suit has still not come to its resolution all this time later.

Nearly two months ago, DECN filed its own counterclaim against J&J, stipulating that the bigger company misleadingly states its own strips, which are the more expensive variety, provide more accurate results. DECN was later notified by a panel of judges that there is 'reasonable likelihood' that their claim will prevail, which further boosted the confidence of traders.

Financially, DECN is not in a very favorable condition, with $160 thousand in cash and revenues for the first half of 2013 shrinking about 70% year-over-year, while net loss more than tripled. The make or break factor for the company is probably going to be the outcome of the two court cases and those will very likely influence the price of the stock far more than balance sheets and sales. There is also talk of much bigger J&J swallowing DECN whole, dealing with the competitive product and minimizing potential legal costs, but this remains speculation, at least for now.

05PWEI_chart.pngOther stocks that held investor attention yesterday include Awesome Penny Stock's newest pick - PacWest Equities, Inc. (OTCMKTS:PWEI), who rose 10% to a close of $0.09 per share. Globalstar, Inc. (OTCMKTS:GSAT) had a strong session as well, ending Monday 12% green, at $0.98.

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