Last month Viking Systems, Inc. (OTC:VKNG) had a monster session. On May 6 VKNG scored a 16.4% gain on over 8.6 million shares. The appreciation held a little over a month.
Last Friday VKNG dropped back very close to the price from before May 6. With a 13.33% decline, the closing price was $0.26. The volume of approximately 588 thousand shares was nowhere near the number from the blast off session.
The performance from May 6 was fueled by 3 PRs issued by VKNG. Two of them concerned the financial results for the first quarter of 2011, and another one announced a $3 million equity financing.[BANNER]
In the first two PRs, VKNG proclaimed their accomplishments. “Sales increased 63% to $3.1 million in the first quarter of 2011…” The gross profit also increased, but by a smaller percentage because of the higher number of products sold at discount for demonstrations.
The 10-Q was published 6 days later, on May 12, and revealed that the operating and net losses had also increased.
The equity financing came in the form of a private placement of 12 million shares of common stock and warrants for the purchase of up to 9 million more shares. The price for a share and a warrant to purchase 0.75 shares was $0.25.
An SC 13G/A form was received on Jun 8. The price had already retreated to around $0.30. It seems the filing for the placement triggered the drop down even closer to the purchase price announced. Some traders may think the price will drop further as there was significant shorting volume for last Friday.
