The last time SWK Holdings Corp (OTC:SWKH) moved up or down by more than 5% was seven months ago. So, if you expected some big movement of SWKH stock yesterday, you’d better give it up because the result was not even close.
What actually happened during yesterday’s session was another far-from-stellar performance delivered by SWKH stock. Closing trade at $0.889 per share, SWKH gained 2.18% in value. While this figure might appear pretty minuscule to some investors, it occurred on pretty substantial volume with more than 300 thousand SWKH shares changing hands. The latter is not only a six-week high, but also ten times higher than the daily average trading volume.
As seen from the bright side, however, SWKH stock has remained remarkably consistent in pennystockland for quite a while now and the MA (200) is a positive evidence thereof. Moreover, SWKH stock’s resistance is even more extraordinary given that the company has not issued any corporate updates for ages.
Nevertheless, SWKH is a diligent SEC filer, hence its OTCQB status. Last month, it published a brand-new quarterly report. According to the 10-Q form which covers the period ended Mar. 31, 2011, the company has:
- $39 million in cash;
- $180 thousand in liabilities;
- zero revenue;
- net loss in excess of $126 thousand.
Seems incredible, doesn’t it? Luckily, everything has its explanation. As stated in the very 10-Q, ‘the Company sold substantially all of its assets to Kay Technology (the “Asset Sale”) in exchange for cash consideration of $40.6 million, plus additional escrow funds that were received by the Company during 2010 and 2011’. Whatever SWKH embarks on in the future, it had better start generating revenues. Otherwise, the outcome is clear and simple.
