MedX Health Corp. (CVE:MDX) (PINK:MDXHF) stock price continued to roll down after an FDA approval last week because the company hasn’t laid down a plan for further actions.
The stock lost another 6.25% under the negative market conditions, erasing most of the gains from the promising rally it had amid last week. The tanking markets clearly had an influence on the stock performance, but it was the fundamentals of the company that added the most negativity.
The trading volume, that was in millions during the rally, has finally settled down, meaning the selling pressure is easing off. Short selling this stock was the only option over the last couple of sessions, but could be challenging for individual traders because of the liquidity issues.
MedX received an FDA approval for MolaMate – the skin imaging system dedicated to evaluate moles and lesions. MoleMate makes use of a hand-held device for inspecting moles. The approval is for sales in the US, while the device was already available in Australia and the United Kingdom.
The company has very poor fundamentals, thus justifying the tanking price:
• Working capital deficit of $4.4 million;
• Only minuscule income and constant losses;
• Recorded 21.9% dilution to shareholders over the past year.
