DiaDexus, Inc. (OTCMKTS:DDXS) Logs Three Strong Days

Waiting for news may be more interesting than the news itself, and there is some serious waiting with bated breath for news from DiaDexus, Inc. (OTCMKTS:DDXS). DDXS added about 5% on Friday to reach $1.10 on trading volumes a bit above $550,000. In the case of DDXS, the expected news are a conference call to discuss the financial results of the company, and perhaps share bits of information that could outline the future prospects of the biopharmaceutical company. DDXS0730.png

In the last three days, DDXS traded on very strong buying volumes, standing at three-year heights. The climb was a long and gradual one, and there are no recorded promotions which could have affected DDXS disproportionately. APPA0730.png

The previous financial filing from May lists the following:

  • $12.7 million cash
  • $17.12 million total current assets
  • $12 million total liabilities
  • $5.5 million revenues
  • $1.1 million net loss

While DDXS is still losing, it seems to be bridging the gap, and moving toward profitability, This would explain why the results would be so much expected. Such a solid-looking company is rarely taken up by promoters, which prefer wilder, unknown bets.

For now, DDXS has not released any news on upcoming treatments, which could be a greater boost to the shares. But those expectations don’t always work in a company’s favor. AP Pharma, Inc. (OTCBB:APPA) is a notorious case of sudden fall when the expectations for a new drug did not come through. And Titan Pharmaceuticals, Inc. (OTCBB:TTNP), despite its experience and power, could not resist the exodus of investors and the stock dropped by 75% in two short days.

Also, DDXS has taken the path of diagnostic tools, a more stable and less risky stream of revenues. Most penny stock companies would put their eggs in one basket, relying solely on drug development. The better-quality stocks would also hold a business that would supply the medical industry constantly.

Still, DDXS contains some risk, as the record buying in the past was usually followed by periods of low activity and a retreat in the price. DDXS moves in a medium range, with lows at around 15 cents, but most usually standing around 40 or 50 cents. The current levels are yet to prove themselves sustainable.

While DDXS may remain strong, the $1 levels are quite unusual, and it is best to do your own due diligence. Stay away from this stock at its peak, unless you are also able to absorb a significant correction to lower levels. The webcast for the financial results will be on August 8th, which means the days leading up to that day may be busier.

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