Georgi Kamburov

The Climb of Decision Diagnostics Corp. (OTCBB:DECN) Continues

by Georgi Kamburov September 18, 2013
DCENchart.pngYesterday the strong momentum that is building behind the stock of Decision Diagnostics Corp. (OTCBB:DECN, DECN message board) helped elevate them to price levels that the company hasn't visited since the start of 2012. The ticker surged past half a dollar per share and closed at $0.65, just shy of its intraday high of $0.68. Volumes are still hovering at almost record numbers with 971 thousand shares traded.

The company offers prescription and non-prescription diagnostics, home testing products and health technologies that can be used in most smart phones. But in recent years they have let most of the distribution agreements expire in an attempt to focus solely on the marketing and commercialization of the Shasta Genstrip, a strip for at-home blood glucose testing. This restructuring has had a detrimental effect on their balance sheet. Revenues have fallen dramatically while net loss is going upwards. For the quarter ending June 30 the company disclosed the following financials:

  • $160 thousand cash
  • $3.5 million total current assets
  • $4 million total current liabilities
  • $377 thousand revenues
  • $1,7 million net loss

DECN are facing even bigger problems. Their Genstrip is designed to work with Johnson & Johnson's Lifescan Ultra meters and is a direct competitor to J&J's own testing strips. In an effort to preserve their market share against the much cheaper alternative offered by DECN, in late 2011 J&J filed a patent infringement suit against the smaller company. Although it is never easy to battle such an enormous entity as J&J recent events have put DECN in a favorable position.

They managed to lift the stay that was put on their product and have started shipping it to their sales distributors. And maybe equally as important a judge panel within the US. Patents and Trademarks Office announced that it is their opinion that DECN's counter-claims will prevail. This outcome has sparked numerous rumors about a possible J&J buyout of the company.

8WTERchart.pngFor now nothing is certain and the court still hasn't come to a final decision. Investors should also keep in mind that the stock may begin to falter after reaching such high prices.

Yesterday marked the start of new multymillion pump, this time for the stock of Media Analytics Corp (OTCBB:MEDA). The company has total assets of only $2400 which may in fact explain why the promo campaign will need a budget of $3.8 million. Alkaline Water Co., Inc. (OTCBB:WTER), who are a subject of a $3 million pump, managed to stop their crash and slid down by only 1% during the last session sitting at $0.47 per share.

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