Implant Sciences Corp. (PINK:IMSC) Surges on Boston Tragedy
Yesterday, shortly after explosions erupted near the finish line of the Boston Marathon, killing and injuring people, the stock of Implant Sciences Corp. (PINK:IMSC) took off sharply and closed the day 18% on frenzied volume in the afternoon.
IMSC is a company that strives for success in the defense and security business. Yesterday its stock was trading slowly before the tragic end of the marathon and was in the red, then saw an immediate reversal as the horror of the explosions loomed, traders scrambling for shares.
The company’s flagship product appears to be the Quantum Sniffer, an explosive detector device that has been the focal point of press releases over the last couple of months. The highlight of those was possibly IMSC winning a government contract valued at over half a million for the sale of Sniffers.
This admirable number will be logged in a future report from IMSC, if the contract goes through. At the moment, investors have the 10-Q for the quarter ended December to look at, and that contains both encouraging and disappointing figures:
- $34 thousand in cash
- $42 million in current liabilities
- $8.3 million revenue for Jul-Dec 2012
- $16.4 million in net loss for Jul-Dec 2012
The revenue figure is admirable for an OTC company, especially considering this was generated in six months. However, the company seems unable to contain expenses and the bottom line is eight-digit loss. IMSC is also facing a pile of credit debt to DMRJ Group LLC, in convertible notes worth millions.
In light of the tragic events in Boston, stocks similar to IMSC may continue to run for some time, driven largely by events external to the companies’ performance. Investors are advised to be extra careful with such stocks and do their own research.
