Senesco Technologies, Inc. (OTCMKTS:SNTI) Bought Up as Underpriced Sensation
Senesco Technologies, Inc. (OTCMKTS:SNTI) called in more than $1 million from buyers, as after a long slide the biotech company was suddenly announced underpriced. On Tuesday, the ticker added ore than 59% to stand at 4 cents, a still rather accessible price. The ticker is otherwise not currently promoted, but is supported by press releases and analysis.
SNTI was beset by a common pattern of biotech companies- a slide in the stock price as the long development process took its toll. Gradually, SNTI slid from 35-20 cents to its current levels. The upward swing certainly shows a lot of energy.
The market cap of SNTI is quite out of tune with its real market potential and research success. So far, the company easily holds:
- $1.5 million cash
- $6.8 million total assets
- $3.5 million total liabilities
- Still zero revenues
- $61 million net loss since inception
- $986,719 quarterly loss
This picture shows a company that is devoted to its research options, but still makes no money and sinks in losses and growing debt. The high expected valuation, according to experts, is due to the company’s upcoming achievements. But this means the enthusiasm for SNTI may suddenly reverse if there are negative news on its research, or the treatments don’t get close to market in due time. Also, the company is financing itself through equity, with 194 million shares outstanding and a further 350 million authorized, which may cause dilution.
AP Pharma, Inc. (OTCBB:APPA) is still trying to recover from precisely the same optimism, when a while back the company did not get a much anticipated green light on one of its drugs. The company is trading actively, but still cannot reach the levels before the massive exodus of investors.
A similar story unfolded for Titan Pharmaceutucals, Inc. (OTCBB:TTNP) as the company received a negative opinion from the FDA and lost 75% of its value in a few short days.
Currently, SNTI is not in the radar of paid promoters, but it is not out of the question that a pumper may pick up the ticker to improve its record. The company regularly mentions its research results, and it it engaged in several phase 2 or phase 3 trials, but still quite far from being a household name in medical practices. So while with a market cap of 9 million SNTI seems underpriced, keep in mind that biopharmaceutical stocks are notorious for falling unexpectedly.