Two days ago, Imaging Diagnostic Systems, Inc. (OTC:IMDS) hit the 52-week low at $0.013 for the second time. Actually, this was a pivotal moment for the steadily declining stock.
The truth is, IMDS has been sliding in a downtrend since December last year. During this period, the stock has went down from $0.045 to $0.013 in a slow but steady temp.
The most probable reason for the downfall of IMDS are the huge net losses which the company has been incurring throughout the quarters of last year. The last 10-Q filed by the company doesn’t show any improvements in the this respect.
According to the recently filed financial report, IMDS had finished the quarter ended March 31 with a loss of $1.5 million, while for the same period last year IMDS had $870 thousand in net loss. [BANNER]
Technical indicators are not in favor of IMDS stock as well. The short-term moving averages haven’t made any crosses since the beginning of May and are currently supporting the general bearish sentiment. Only the MACD indicator has just crossed above the moving average, but with a low histogram showing that the stock may not have enough power to make a major turn around.
In general, there are not enough indicators that can give a firm signal that the contraction phase, which has been ruling IMDS stock for quite a while now, has come to an end. Trading volumes are also lower or near the daily average, which means that there is not enough investing interest as well.
