diaDexus, Inc. (OTCMKTS:DDXS) Still Inching Up on Strong Volume
Yesterday marked another strong trading session for diaDexus, Inc. (OTCMKTS:DDXS). The company moved a record volume of nearly 4.5 million shares – an unprecedented number, driven by a huge volume spike in the late afternoon.
The company’s climb that shot the stock price through the $1.00 mark happened last Thursday, when after months of very low-volume trading, the company shifted nearly 3 million shares and closed 25.9% up. The impetus that possibly aided the sudden jump was a news announcement that informed the public analysts had initiated coverage of the company and attached a ‘strong buy’ rating.
DDXS is a pharmaceutical OTC enterprise with a bit of a difference. Unlike many of their same-tier peers they have a FDA-approved product – their PLAC test that diagnoses increased risk of cardio-vascular disease. Following last week’s major surge, the company posted another press release informing shareholders of an upcoming conference call on Aug 8 when Q2 financial results will be discussed, which possibly helped keep the limelight on DDXS and stabilize the price after the jump, with the stock still climbing.
DDXS is doing quite well in 2013, with the stock steadily climbing on the charts and now sitting about three times higher than its January values, following a mostly stable increase with no drastic retraces. The company posted the following financials in its report for Q1 of this year:
- $12.7 million in cash
- $4.4 million in current liabilities
- $5.5 million in Q1 revenues
- $1.1 million in Q1 net loss
DDXS does have a very comfortable amount of cash on its hands and despite still logging net loss, the loss is relatively moderate and it has shrunk a little year-over-year, while revenues have gone up, especially the portion derived from product sales. Additionally, the company has never been targeted by stock pumpers.
How things are going to pan out will largely be determined by the Q2 results discussion next week but if the company managed to show growth on a quarter-over-quarter basis, shareholders may be in for a treat. Traders looking to enter should just keep in mind the dangers associated with chasing stocks after larger jumps and should proceed with caution and after doing their own due diligence.
Other stocks that kept moving up in Tuesday’s session include Affymax, Inc. (OTCMKTS:AFFY) who closed 15% up on strong volume. The stock odyssey of Xumanii, Inc. (OTCMKTS:XUII) goes on, with XUII closing 6% and making up some more of the huge crash that sent it down into the thirties after the stock was trading as high as $0.75 last week.
