Yesterday, Lightwave Logic’s stock lost another 1.87% of its value, making thus a total loss of 32% since the beginning of the month. The market closed at $1.05 and during the day the price approached the yearly bottom at $0.65 as suddenly investors sold out a large number of their shares in LWLG. The total volume “gain” was also not encouraging, almost 330,000 shares were sold, representing seven times the average volume.
The market started selling LWLG already about a week ago and as the 10-Q was filed this Monday, the stock only continued the started down move. Since then, Lightwave’s attempts to bring in some positive thinking do not seem like their could achieve that goal.
Yesterday, a press release announced that a conference call is scheduled for next Tuesday, in which interested shareholders will have the chance to get updated on the “positive technology progress and developments” of the company, further details about that progress not being mentioned. Unfortunately, the previous updating event of that kind in July did not have much of effect on the stock price.
During the first six months of the year, Lightwave Logic burnt out 63.8% of the cash it had end of December last year. The result was actually encouraging. The company recorded in that period the first revenues since its inception in January 2004, coming from a research project. But the expectations were obviously much higher, if we consider LWLG’s still impressive P/S ratio of nearly 14,000 as compared to an average of 5.16 for the sector.[BANNER]
What is left from the cash is barely enough for LWLG to survive the current quarter and but in the latest quarter report the company states that it has recently commenced a $1,5 million private offering of its equity. The amount to be raised is still not determined, but the current market valuation suggests that there are investors, who find Lightwave Logic’s business model attractive enough to buy their shares.
