Hard Times for Affymax, Inc. (OTCMKTS:AFFY)
We have been keeping an eye on Affymax, Inc. (OTCMKTS:AFFY) and their dramatic story of a NASDAQ listed company that went on to trade in the OTC Markets after it did the right thing. Even though they took the right decision to voluntarily recall their drug OMONTYS this didn’t help them much with their stock and they are currently struggling to hold their positions until there are more definitive news from the investigation made by Takeda and the FDA.
There aren’t any definitive news about OMONTYS and we are quite sure that the only reason for AFFY‘s stock to stay level is that the volumes in which it is traded are low. Movements of more than 10% are rare and the only time we saw those was in the final days of July when interestingly there were high volumes of traded shares and at one day these volumes even managed to generate a trade value of $9.4 million.
After the upward movement that lasted 5 trade sessions and with which they gained a total of 54% in price things started going south and they finished the next 4 sessions in the red. Most recently they are showing signs of recovery with a 5.33% gain from yesterday’s session, but it’s not sure where they will go from here. Today’s session has led them nowhere so far as they are keeping their price at $1.58.
Lately they filed their quarterly report with the SEC, covering the period ended June 30 so we will take the time to show you the numbers of prime interest contained in it.
- cash: $10 million
- total current assets: $11 million
- revenue: $525 thousand
- net income: $15 million
They seem to be doing alright for the moment, but you cant fail to notice the $30 million less that they have available as cash. A good sign is that they are continuing to generate revenue even though it’s from collaboration. You might notice that they have a net income of $15 million and this might be a big question for you, but it comes from adjustments to impairment charges.Furthermore, the company’s management is anticipating that they will end the year with a net operating loss and this is the reason for them to not record taxes.
Having in mind that the situation might not resolve as quickly as everybody involved wants be sure to do your due diligence and weigh out the risks for yourself, however, do consider that AFFY is probably not the best bet for a short-term play with their current chart movement.
On the other hand we saw big movements on high volumes from Sanborn Resources Ltd (OTCBB:SANB) and Senesco Technologies, Inc. (OTCBB:SNTI) who are currently priced at $0.250 and $0.0367 respectively.
