At first sight, looking at it might seem shocking as Applied DNA Sciences Inc(OTC:APDN) stock has been a guest of $0.05-0.06 levels for quite some time now. Yet, considering the overall performance during 2011, it is not really anything new for this stock to show such sharp spikes. 
Now, the session yesterday closed at $0.081 per share, supported by 4.5 million shares exchanging hands. A good 31% increase for the day. The reason for this increased trading activity appears to be the news from the first two days of the week:
- July 19th – Martin Guitar to Protect Against Counterfeiting via Partnership With Applied DNA Sciences;
- July 18th – Applied DNA Sciences Closes $5.0 Million Round in Company’s First Institutional Financing;
Good news, indeed. The things is, it is not really regular traders who are responsible for this 4.5 million shares exchanging hands. A closer look reveals that shorters also had a busy day yesterday. Short selling activity amounts to 2.5 million shares, or more than 50% of the total trading volume for the day. A point to keep in mind.
Another point to keep in mind – financing and balance sheets. There have been some vivid discussions about the company`s future, management compensation and its connection to growing quarterly revenues. Yet, as good as this sounds, the last 10-Q filed, covering the first 3 months of 2011, indicates the following: [BANNER]
- $122k in cash;
- $274k in total current assets;
- $3.3 million in total current liabilities;
- $155 million in accumulated deficit;
- $140k in sales;
- $2.5 million in net loss;
Obviously, a tough target lies ahead for the management. If, indeed, revenues increase, and sustain growth for several consecutive quarters, a patter of stability and growth is also likely to form on the stock market. If, however, the balance sheet remains the same for the months to come, uncertainty is most likely to prevail, as it does presently.
