Is $60,000 much for you? Or these are only pennies? For me this amount of money is moderately large. However, Applied DNA Sciences Inc. (APDN.OB) is of a different opinion. A provider of DNA-based security solutions paid this sum to Super Hot Penny Stocks which is to promote the company and its stock. It seems to be helping the company: yesterday the stock reached $0.124 which is about 13% higher than in the previous trade.
Although the stock price may be affected by these manipulations, the financial analysis reveals all the secrets. I have decided to compare the latest two quarters, one of which is the last quarter of 2008, while another is the first one of the year 2009. From the income statements, it is seen that operating loss has been increasing over the period: in September it was $812,000, and in December this loss sprout up to $2,833,000. At the same time, gross profit fell down more than twice.
From the analysis of the balance sheet, the two quarters do not look inviting: current assets are 41% down, as well as liabilities. In case of the current liabilities, this is a positive sign. However, it is still not enough that a company would be noticed by investors.
