Guided Therapeutics Inc (OTCBB:GTHP) Shoots Up The Chart On Record Volume

The chart performance of Guided Therapeutics Inc (OTCBB:GTHP) has been nothing short of depressing for quite a while. Unable to form a more prolonged recovery the company has fallen from prices of over 24 cents in April to a new record low of $0.0358 last Thursday. After hitting such prices, however, it seems that things might finally be starting to change for the better.

On Friday the ticker closed with a gain of nearly 6% while yesterday, thanks to a new PR, the stock was propelled upwards adding over 30% to its value. The sheer number of shares that changed hands yesterday was equally as impressive – investors shifted the unprecedented amount of 4.99 million shares. Although the PR contained little new information it still reminded the market that GTHP expect to ship 25 LuViva Advance Cervical Scan units and approximately 40,000 single-patient-use disposables by the end of the year. Most of the products will be sold as part of the Turkish Ministry of Health order that spans four years and totals $14 million. As for 2015 GTHP anticipate generating revenues of $1.1 million.

On November 6 the company will also meet with the Food and Drug Administration (FDA) to review the plan for the premarket application for the LuViva Advanced Cervical Scan. Back in May the FDA declined to approve the application for the product recommending that additional patient data should be included next time. In the days leading up to the meeting GTHP‘s stock might continue to enjoy increased interest from investors.

Using caution, however, may not be a bad idea. Although GTHP have real products and are generating revenues their financial state still raises some concerns. The company has been funding its operations primarily through outside sources of capital and the potential dilution should not be underestimated. During the first nine months of the year the outstanding shares grew from less than 97 million to over 143 million. As of September 25 if all of the outstanding preferred convertible stock, options, and warrants were turned into shares GTHP will have to issue more than 500 million new shares.

A little over a month ago during a special meeting of the stockholders the authorized shares were increase to 500 million. Apparently that wasn’t enough and a new meeting will take place on November 11. This time the shareholders of the company will vote on an increase of the A/S to 1 BILLION shares and a potential reverse split.

When deciding whether to put any money in the stock or not investors should also note that while yesterday’s trading day was extremely positive for GTHP the stock was also influenced by a round of pump emails that were sent out on Sunday. The involved newsletter – PennyStockLocks, Momentum OTC, InsiderStockProvider, were all affiliates of MJ CAPITAL and disclosed a compensation of $11,500. 

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