Chembio Diagnostics, Inc (PINK:CEMI) got really volatile again during Friday session and received extraordinary volume. There is still no particular reason for the huge volume, although there has been a lot of news this month and maybe traders expect more to come out. 
On Friday CEMI share price ranged from $0.43 to $0.53, which does not seem so unusual for this stock. The market closed then at $0.48 for a share, 2.06% lower than the day before and the trading volume was several times higher than the average with over 606,000 traded shares. CEMI fell through the 44 cents support and the next one is at 42 cents, which is already in the previous and lower trading range. Though, there are also some positive indications that could attract more buying today, for example a positive MACD lines crossover.
The latest news from Chembio Diagnostics came out almost three weeks ago when the company said that it will take part in the annual AIDS Walk New York on Sunday, May 15, 2011. CEMI develops and manufactures rapid HIV/AIDS testing products and according to the press release it is also among the sponsors of the walk.
A few days before that, the company also filed its quarter results for the first three months of the year and as a consequence CEMI returned back to the price levels of around 50 cents, which looks like a fair value at present. As of end-March 2011, the company has improved its cash position to nearly $2.8 million. Debt was also reduced, while the sales increased by 36% on an yearly basis, mostly due to a increase in the sales of CEMI FDA-approved rapid HIV tests.
Gross margin has increased by 10% to 43%, which is however still somewhat lower than the industry average. The net results was a loss of $142,000 and CEMI also had outstanding options and warrants for over 8 million new shares of common stock.
