12.50% and its volume jumped up to over 3 million shares traded. It appeared to be a significant value for HDC as compared to its average volume of 238 thousand shares traded.We notice that the high trade occurred when the company reported it was to issue to an unnamed investor warrants to buy 6.87 million shares. According to the announcement, the investor has claimed rights to up to 146.66 million shares. However, HDC denied his claims and expected to receive an over $1 million charge, plus approximately $598 thousand non-cash charges.[BANNER]
It seems that this news has attracted investors’ attention, though the company has not obtained any cash yet.
Health Discovery Corporation is a pattern recognition company that uses mathematical techniques to analyze large amounts of data for uncovering undetectable patterns. The Historical data shows that HDC has traded much higher over the past 12 months, when the price pointed $0.40 per share. However, it started to move down after that. This February the stock had another high trade period, though since then a downtrend has occurred.
The first quarter results of the company don’t look much satisfying. HDC has generated higher revenue and net income, though its net loss increased by over $1 million, which is approximately 50% than the year before. This year, the net loss attributable to common shareholders also exceeded $1 million, compared to about $557 thousand in 2009.
According to the financial report, the liquidity position of HDC has improved, though the company still has some liability charges to cover. However, the corporation claims that it presently has: “sufficient resources to meet all of our current obligations”.
Based on all the information above and on the fact that nobody can predict the future movement of the stock, it is too early any conclusions to be made.
