Borislav Tonev

Applied DNA Sciences Inc (OTCMKTS:APDN) Attempts Another Recovery

by Borislav Tonev October 22, 2013
1APDN.pngBack in May, not more than five months ago, Applied DNA Sciences Inc (OTCMKTS:APDN, APDN message board)'s share price was comfortably hovering above the $0.20 per share mark and, although there was some hesitation, few people believed that it could drop below $0.10. Yet, it did. On September 27, the ticker closed the session at $0.098 and cemented APDN's reputation as one of the worst no-pump performers on the OTC Markets.

The rather horrific downfall is somewhat illogical considering the press releases that have been coming out of the company HQ, but, as we mentioned in our previous articles, there were a couple of factors that have definitely played their role in pushing the price towards the bottom of the charts. We are, of course, talking about the rather severe dilution that the shareholders have gone through over the last couple of years and the less than perfect financial results for the second quarter of 2013.

The dramatic loss in value is also something of a shame since APDN do appear to have a great piece of technology and during the second quarter, they did show us that it's not all wishful thinking either by starting the sales of their SigNature DNA markers. Still, as evident from the chart above, clever products and an interesting business plan don't always translate into a steady growth in the price.

The ticker is trying to recover, though. It first attempted to get back above $0.10 around the beginning of October and it managed to do it. Unfortunately, the run was extremely short-lived and a few sessions later, it was back where it started. For the last couple of days we have seen another rally and this time it seems more serious. APDN hasn't had a red session since last Monday and trading proved to be particularly intense yesterday. A trading volume of around 4 million shares resulted in a 15% price increase and the ticker finally managed to break through the $0.10 barrier closing at $0.115, its high of the day.

The price hasn't moved by more than 10% in quite a while and some people are starting to think that this might be the start of a new, more prolonged run in the right direction. Is that the case, though?

Well, the surge was caused by a press release which, normally, isn't a very good sign. On October 15, APDN announced that they have signed a contract with one of the top four American Defense Contractors, according to which the latter is going to be regularly purchasing SigNature DNA markers for a period of ten years. APDN have apparently already received $62 thousand as part of the deal and the 10-year term means that it should aid them in the long run. Without a doubt, this is some good news, but we're not sure if the effect on the share price will last for much longer, especially considering the established downward trend over the last couple of months. What's more, the 8-K describing the agreement says that the contract "severely restricts" the publicity from the two sides which means that the only way of knowing how positive the effects are, is to wait for the official filings.

12APDN_logo.gifUnfortunately, the next report to come out of APDN's HQ will be the one covering the twelve months ended September 30 and we'll need to wait for a while until it gets published. Until then, the price movement remains unpredictable, which means that considering all the risks (like the patent infringement lawsuits that we mentioned in one of our previous articles) is absolutely crucial.

While APDN was gaining momentum yesterday, OncoSec Medical Inc (OTCMKTS:ONCS) was losing it. When the closing bell rang ONCS was around 8.5% below Friday's value while the dollar volume amounted to more than $1 million. Things were even worse for Nestor, Inc. (OTCMKTS:NEST) - a ticker that wiped out more than half of its value, erasing a large portion of the massive gains registered on Friday due to a misunderstanding of an interview given by Mr. Al Gore.

Comments 1

1. Guest
October 23, 2013, 04:04PM

Quotes I have never seen a sight that will not disclose the purchase price before taking you credit card info!

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