On a volume of over 2.61 million shares, the price of CEMI stock closed 37.5% higher yesterday at $0.33, six cents below the 52-week high. Very bullish signals appeared on the chart, showing that the demand for the shares is growing and that a moving averages crossover is about to occur. Apart from the reported in the 10-Q progress in the company’s operations, there was also a promotional disclosure for CEMI yesterday that could have enhanced the interest of traders. Trading alerts have been distributed, but no compensation for the service is given so far.
Chembio’s incredible progress is noticed when comparing the financial results for the nine months ended this September with the same period last year. As the company has advanced with the development of its diagnostic tests, milestone payments and grants for $2.3 have been received in that period, as compared to less than a million last year. License and royalty revenues also jumped up by almost 380%, which all together made the net result from operations grow to over $643,000 from only about $100,000 last year.
It looks like that progress has not been reflected by the market yet, as it still gives a much lower premium on the share price as compared to the average for the industry.
Another interesting issue in the company’s earnings press release is maybe also that the management is pursuing a potential acquisition of Chembio by two companies, but no potential sale agreement with a particular company has advanced enough to get disclosed.
