traded volume exceeded 1 million shares for the day.No other explanation on the sudden price jump can be found, except the recent announcement by HLCS on its new technology on cancer research. This is the latest press release from the positive announcement series, published by the company over the last month. Apparently, these have attracted the investors’ attention and the stock started to climb.[BANNER]
Helicos BioSciences Corporation is a life sciences company, which has developed technology focused on the research, drug discovery and clinical diagnostics markets. Historical data shows that last year the company traded much higher and in September the price moved up to nearly $3.00 per share. However, after that it began to fall down and a downtrend occurred. Presently, HLCS trades under $1.00 per share and the analysts expect the price to move down again.
The financial results of the company don’t look much promising. Since its inception, HLCS has incurred losses and has not generated positive cash flows from operations. The company expects the losses to continue and claims they can affect its working capital. This year, revenue and gross profit of Helicos have increased, though its net loss remained much higher.
As the company doesn’t have sufficient cash to cover its operations, it will need significant additional capital before the end of the third quarter of this year.
In its latest quarter report, HLCS states: “In the first quarter of 2010, we began a process of considering alternatives to our existing long-term strategic focus, including a repositioning of the company in the genetic analysis markets.”
Currently, the stock continues to move up progressively, though the facts are quite contradictory and no one can be certain on its future movement.
