This Wednesday, more than 740k shares exchanged hands, the session closing at $0.44 per share. A bit less than 10% decrease for the day. The question at hand – why now? The session before that the trading volume was 10 times smaller. In fact, while Tuesday saw a trading activity amounting to 65k shares, on Wednesday only the short-selling activity went above 100k for the day. An interesting situation.
On the other hand, if this is a one-time burst, the stock would probably keep its price around the $0.5 level, one that it has been holding for a long time now. Yet, there are some objective factors that could change this status quo. One of them is the balance sheet.
Liquidmetal is one of the companies in the penny stock world that offers an interesting balance sheet, one that could be subject of different interpretations. The 10-Q for the first three months of 2011 is a good example. Among other figures, it includes: [BANNER]
- $3.3 million in cash;
- $7.5 million in total current assets;
- $34 million in total current liabilities;
- $177 million in accumulated deficit;
- $2.8 million in revenue;
- $9.1 million in net loss;
So, there is cash at hand to fund operations. There are the revenues which increase compared to the same period in 2010. On the other hand, there are the mounting liabilities and the huge net loss for the quarter in question. A good basis for speculators to exercise their skills. Just one of the many reasons why sustainable growth of the stock price is still a matter of wishful thinking.
