A5 Laboratories Inc (OTC:AFLB) share price added over 25% today with the help of a stock marketing campaign.
The promoting efforts helped to pick the share price up from the bottom and added some market depth to the stock, that hit its all-time low a couple days ago. Trading volume wasn’t very spectacular compared to the historical rallies of similar proportions, but, at around 822 thousand shares traded, it was more than twice the 50 day average. The volume remained heavy by the end of the trading day as well, thus some follow up for this spike looks reasonable from a technical point of view. Furthermore, the price is now above a strong support level at 40 cents.
However, since there were no real updates on the business, the chance for a decline remains high as well. The marketing emails and articles on promoters’ websites contained no new information. The same ad has been running since the first time it aired, exhibiting A5 Laboratories as one of the prime takeover targets for Pfizer, Inc. (NYSE:PFE).[BANNER]
While the promotions talk about possible takeovers, the company is actually heading to test their products first. A5 has an agreement with Zabolotny Institute of Microbiology to help them produce interferon based products for testing, as the company doesn’t maintain the necessary equipment themselves.
Their lack of working capital is alerting and obstructs fluent development of the highly advertised cheaper-to-produce version of interferon. The micro cap company held only $162.5 thousand in assets by the end of the second quarter 2010.
