CardioComm Solutions Inc. (CVE:EKG) (PINK:EKGGF) stock price started to lose ground as the preceding rally exhausted and the collapse rate might increase with time.
The stock price has over-extended in a rally that happened a couple of sessions earlier and now resides at hardly sustainable levels.
EKG began to fall shortly after hitting its new multi-year high on Wednesday. A sharp and quick correction doesn’t seem to be underway, though, because of the effect of the recent news, but a slow degradation in price would be a natural response here.
The problem with the current stock valuation is that it reflects the news that will only benefit CardioComm in the future, and the extent of that benefit is yet unknown.
Traders were reacting to the FDA clearance the company received and announced on January 24, and under which they were allowed to proceed with over-the-counter sales of HeartCheck handheld ECG.
An ISO audit that was performed on the company found that they have properly implemented and well documented resource planning, design, development and other processes and thus passed the requirements imposed by related ISO standards.
The company still needs to confirm sales channels, finalize technology infrastructure and check agency representation across global markets. In other words, there’s still a lot to do before the products can begin to roll.
