Despite the numerous promotional campaigns and all occasional press releases, no one seems to be able to stop the downfall of Alliqua Inc (OTC:ALQA). And what a steady this downfall has been.
Since the twelve-month high of $0.225 of May 6, ALQA had slumped to its late-August level of $0.084 per share, before getting a breath of fresh air during yesterday’s session. On Jun 23, ALQA stock somehow gained 19% in value, closing the session at $0.10 per share on a three-week high volume of 1.2 million. The latter is also considerably greater than the daily average trading volume of 699K.
The surge happened ‘somehow’, because no apparent reasons seem to have preceded it. The company’s latest official PR dates from May 4. In addition, although ALQA stock has been one of the most heavily advertised penny stocks for 2011, it has not been backed up by promoters for more than 2.5 weeks now. Yet, ALQA shifted twice as many shares as the day before.
Like many other pink sheets from the industry, Alliqua, Inc. specializes in manufacturing biomedical products, as well as developing proprietary technologies for drug delivery, advanced wound care and liver health preservation.
As a regular SEC filer, ALQA has adopted a transparent financial policy toward its stockholders. On May 12, the company killed two birds with one stone by filing not one but two comprehensive reports – a full-blown 10-K annual report for the period ended Dec. 31, 2010 and a fresh 10-Q form covering the quarter ended Mar. 31, 2010. The latter contained the following financial data:
- $1.8 million in cash vs. $1.4 million as of Dec. 31;
- working capital surplus of $2 million as opposed to $1.7 million for Q4 of 2010;
- net revenue of $403 thousand vs. gross loss of $93 thousand;
- net loss in excess of $2.16 million as compared to $393K in the preceding quarter.
While the first two indicators seem fairly positive at the moment, they will gradually melt away if the company continues to generate less income than its cost sales.
