Solgenix, Inc. (OTCBB:SNGX) Rises on News of $26 million Contract
Solgenix, Inc. (OTCBB:SNGX) this time reacted with perfect timing, rising on the news that the company secured a $26 million contract with the US Department of Health. Involvement with government agencies is always a big plus for penny stock companies, 
leading to significant and stable revenues.
SNGX is currently at a two-year peak after the crash of downlisting to the OTCBB markets brought the stock from around $5 to $1. On Thursday, SNGX added a net of more than 8% to stand at $1.94 on buying volumes above $713,000. Activity has been picking up in the later months, and SNGX looks like another comeback story.
Before the big contract, SNGX was handling itself well enough, making losses that could easily be overcome:
- $2.6 million cash
- $3.4 million total current assets
- $1.6 million total current liabilities
- $900 thousand grant revenue
- $1 million net loss
The company has used new share issues to boost cash, and still has a long way to go until using up the 50 million authorized shares.
SNGX has not been pumped, and was just mentioned in an email in July by AllPennyStocks, as a composite mail with several stock recommendations. Probably SNGX was chosen as a way to boost records.
If you like the story of a comeback, Southern ITS Int’l, Inc. (OTCMKTS:SITS) is a recent mover that reached a peak at $0.007 and is struggling to break out to the penny levels. SITS slid back a bit on Thursday, but the fall in price was almost nothing, so we may expect SITS to sit around for a while.
Decision Diagnostics, Corp. (OTCBB:DECN) is another promising small cap that is fighting for a place in the glucose test strip market. DECN slid back a little to 68 cents, but is also sitting on a trend that lifted it more than 300% in the past weeks.
We have to wait and see how SNGX survives Friday’s trading and how it prepares for a new week. While a stock will from time to time rise on its own fundamental factors- a strong business model, a contract or a new drug, such tickers are not immune to serious falling. SNGX could retreat from its nearly $2 price without warning, so it is best to invest only sums that you can afford to lose.
