A5 Laboratories Inc (OTC:AFLB) finished a two day rally with a nearly flat note, indicating a possible price retraction. The trading volume indicated a drop in investors’ interest as profit taking and shorting took over.
The two day rally, which occurred by the end of the last week, was created when the company signed a partnership agreement with a European Institute of Microbiology. The new partners agreed to manufacture A5’s interferon products using the technology provided by the company.
News can be taken controversially – it’s good that the company finally found a way to produce interferon products without a need to lay down heavy investment and build their own facilities. On the other hand, no material changes have taken place, and the effectiveness of the products remains as questionable as it was before the company partnered with Institute of Microbiology.[BANNER]
The products are still in research, and manufacturing will only be required for the in-vitro and in-vivo studies, not the commercial production.
A5 Laboratories struggles financially, thus the partnership agreements are essential for this micro cap company.
The stock has been dwelling low for the past half a month, finding support near the $0.40 level. The news got the price bouncing, but the volume appears too weak to trigger anything more than a couple days rally.
