A storm after the calm. Yes, this is how the stock performance of CNS Response, Inc. (OTC:CNSO) in the last two consecutive sessions can be best described.
On the one hand, both sessions were very much alike as they succeeded in shifting in excess of 2 million shares, with the first one setting a 52-week high of 2.9 million. On the other hand, however, these two sessions were diametrically opposite as far as the price movement is concerned. The huge volume generated on Oct. 5 literally smashed the value of CNSO stock by 76%. As a result, CNSO closed at a 12-month low, setting a new negative record for the company. It was not until the next trading session that CNSO somehow managed to recover with a bang, in spite of the massive turnover which again reached a significant level, this time landing in at a little over 2 million shares. By the end of the day, CNSO had gone up a staggering 67%, closing at $0.10.
Yet, CNSO has a long way to go before regaining its usual market position. Until a couple of months ago, CNSO shares were traded around and above the $0.50 level. Unfortunately, there has been no news for the last four weeks or so, which might have contributed to the negative price trend.
Just like many other regular information providers, CNSO filed a complete 10-Q report with the SEC on Aug. 15. The report, which covers the quarter ended Jun. 30, 2011, revealed:
- $910K in cash;
- working capital deficit in excess of $9 million;
- nine-month net loss in excess of $6.1 million.
For a company whose working capital gap is ten times its cash reserves, the situation seems far from flawless. On the contrary, CNSO will have a long way to go before going profitable. Yet, coming up with a stellar product on the market is still an option one should not forget about.
