Response Genetics, Inc. (OTCMKTS:RGDX) Suffers After NASDAQ Delisting

[[tagnumber 0]][[tagnumber 1]]The first and the last time we wrote about Response Genetics, Inc. (OTCMKTS:RGDX) was back in October 13 when the company was still trading on the NASDAQ national exchange. Usually covering OTC penny stocks there had to be a pretty good reason to look into a NASDAQ listed company.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And trust us, there was. Back then the company was the target of a pump campaign, something you rarely see with entities listed on national exchanges. Still, it appeared that the promotion wasn’t paid for so it might have just been some outlets trying to make a name for themself.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The pump didn’t yield any results either. Meantime, the company hasn’t been in such great shape financially. Here is what their quarterly for the period ended March 31, 2015 contained.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 13]] [[tagnumber 14]]cash: $1.73 million[[tagnumber 15]] [[tagnumber 14]]current assets: $8.75 million[[tagnumber 15]] [[tagnumber 14]]current liabilities: $4.87 million[[tagnumber 15]] [[tagnumber 14]]quarterly revenues: $3.79 million[[tagnumber 15]] [[tagnumber 14]]quarterly net loss: $4.01 million[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is looking good by the standards of the companies we usually write about, but you shouldn’t forget that [[tagnumber 28]]RGDX[[tagnumber 29]] is trade on the NASDAQ, or at least, was traded on the NASDAQ. A form 8K filed on July 6 informed the general public that the company is being delisted from the national exchange and will continue to trade over at the OTC markets.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The results were immediate and devastating. [[tagnumber 28]]RGDX[[tagnumber 29]] lost nearly half of its value in the day of the filing. It dropped a further 12.73% in Tuesday’s session and tried to regain some value, adding 25% on Wednesday.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The recovery, however, was shortlived and we saw [[tagnumber 28]]RGDX[[tagnumber 29]] lose 20.67% in yesterday’s session and slide to a close at $0.119. And even though the volume was massive compared to the 30day average of the stock the 803 thousand shares that changed their owners generated only $93 thousand in daily trade value.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Today’s session isn’t going very well either and we see [[tagnumber 28]]RGDX[[tagnumber 29]] sitting 6.72% down as of the writing of this article. With a market cap of $5 million, however, it seems the company is a bit undervalued compared to other companies that have far less to show in their balance sheet.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And while we might see [[tagnumber 28]]RGDX[[tagnumber 29]] make somewhat of a recovery nothing is for certain so you should be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]

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