days of 2010 and this year the movement of the stock is just about to be seen.Along with the price jump, last Friday traded volume of ACTC reached shocking values, exceeding 53 million shares for a day. But what is the reason for the sudden stock flight?
Historical records show that ACT was lastly promoted on Dec 20 when the stock price jumped up. However, it fell down shortly and remained in the low-trade zone until last week. On Thursday, ACT published a positive announcement about its business, reporting the entry into a securities purchase agreement with Socius CG II, Ltd. According to the agreement, Socius has purchased 400 shares of Series C Preferred for an aggregate purchase price of $4 million. ACT also expected to end the year with approximately $15 million in cash and equivalents and less than $1 million of debt.[BANNER]
After Mr. Gary Rabin, ACT’s Interim Chairman and CEO, stated that his company was entering the new year “in its strongest financial position ever”, the investors’ attention was immediately provoked and the high trade for ACT was on. The only question is how long it’s going to resist this time.
According to the charts, the price change of ACTC has changed sharply over the past months and every time it went up the stock was back down soon. Usually, the reason for the up move was the positive PR strategy of ACT and the stock promotions, though none of these could hold the uptrend much long.
Despite its recently eliminated debt and the new material agreements, the financials of ACT still look disappointing. According to its last 10-Q report, by end-September the company’s liabilities were more than six times higher than its total assets and the operating loss was not covered.
The management team of ACT claimed that due to their limited operating history, “If we continue to suffer losses as we have in the past, investors may not receive any return on their investment”. Now the company states that 2011 will be stronger than ever, however, the results are yet to be seen.
