Kraig Biocraft Laboratories Inc (OTC:KBLB) has been climbing up at top speed over the past few days. Yesterday, the stock 
soared approximately 19% and its traded volume increased by 8 million shares.
Apparently, the gain was due to the latest news by the company. On May 31 Kraig reported that it successfully mated new commercial hybrid transgenic silkworms. According to the announcement, the new silkworms were producing significantly larger recombinant silk cocoons and were designed for commercialization.
Having heard the hopes for increasing Kraig’s production capacity, traders started buying its stock intensively and its price jumped up.
It turns out that the silkworm news is always helpful for KBLB, as it’s the usual reason for its gains. Historical data shows that the stock has had regular price jumps as a result of some optimistic news, though the company still hasn’t improved its financial condition.
According to its latest 10-Q report, the liabilities of KBLB are substantially higher than its total assets, while the deficit accumulated during the development stage period jumped over $2 million.[BANNER]
Due to the company’s huge working capital deficiency and stockholders’ deficit, its ability to continue operations remains under substantial doubt. Though, Kraig continues to sell shares of its common stock at top speed, while the management believes it can not satisfy the company’s cash requirements for the next 12 months.
Judging by these facts, KBLB can hardly improve its financials soon, especially when the company is still run by Mr. Kim Thompson, the one and only officer and director of Kraig Labs.
