Yesterday, PositiveID Corporation (NASDAQ:PSID) made a significant move up after it announced that the Department of Homeland Security (DHS) has validated the performance of PSID’s Multiplex BioThreat Assay.
The announcement was made early in the morning and when the session started PSID surged immediately. By the end of it it closed at $0.32, below the high of the day, but still with a 24.37% increase. The volume of 1.2 million shares was ten times the average.[BANNER]
Hanover Financial Services paid $25 thousand for a promotion to accompany the news. It seems the validation by the DHS proved to be a solid foundation for the gain. Usually, after a promotional spike the price takes a swift turn down, but in this case PSID kept a stable price level through the whole session.
The validation is indeed an important milestone, but it may take something more to push the price further up. Perhaps, if PSID’s MBA starts bringing in revenue it would help the situation.
As of the end of Q1 of 2011, PSID had enough cash to cover its liabilities, but was still operating at a loss. The revenue and cash at hand wouldn’t be enough to support the operations, given the spending rate remains the same.
