Lightwave Logic, Inc. (OTCMKTS:LWLG) Surges Past $0.90 Again
About a month ago, Lightwave Logic, Inc. (OTCMKTS:LWLG) jumped out of the blue and in a matter of a single session it managed to run from $0.75 all the way to $0.90. Unfortunately, it failed to remain at these levels for long and three weeks later, it was back where it started. Right now, we’re seeing something similar.
On Wednesday, investors traded around 283 thousand shares while the ticker gained a modest 3.8%. Yesterday’s performance was much more impressive. More than 376 thousand shares changed hands meaning that the dollar volume at the end of the day stood at $335 thousand. LWLG added 13.4% to its value and it currently stands at $0.93 per share.
The logical question is: “Will it manage to remain calm under the pressure, or will it drop like it did last month?“.
The reason for the increased interest seems to be a Form 4 published on Wednesday. It says that Ronald Bucchi, one of LWLG‘s Directors, has purchased 13,400 shares of common stock and the same number of warrants during a recent private placement. Investors perceive this as a good sign and it should be noted that seeing one of the insiders put his own money on the line is never a bad thing. It means that he has some trust in the company. But does that necessarily mean that LWLG is going to make it?
Only time will tell. The company is developing a clever piece of technology which could have numerous applications and they do have some money in the bank. Here’s a summary of the financials they recorded at the end of the first quarter of 2014:
- cash: $1.9 million
- current assets: $2 million
- current liabilities: $312 thousand
- revenue: $2,500
- quarterly net loss: $987 thousand
LWLG tell us that the cash reserves should be enough for a few more months of operations, but unfortunately, they’re not too keen on telling us when full production should begin. As we mentioned in our previous article, they have missed a fair few deadlines so far and guarantees are nowhere to be found.
Having said that, the appearance of some figures under the revenues section of the latest report is definitely a good sign.
All in all, LWLG is a waiting game at the moment. People are hoping to see the end of the development stage soon, but right now, no one can say for sure when that’ll happen. This means that a potential investment is still risky. Especially considering the exercising of warrants that took place during the first quarter.
The Stockholders’ Equity part of the latest 10-Q (Page 17) tells us that during Q1, some warrants were turned into common stock at rates ranging from $0.25 to $0.34 per share. For the record, LWLG hasn’t been traded under the $0.50 mark for the last four years. The number of issued shares is not huge, but we reckon that bearing it in mind might not be a bad call.