Strikeforce Technologies Inc (PINK:SFOR) had been struggling with the $0.04 since March. After two consecutive positive sessions, SFOR has broken through.
On Monday, SFOR managed to close at $0.038, up 22.58%. Yesterday, with much more consistent trading and price climbing, it closed at $0.0485 for a 27.63% increase on a substantial volume of 2.5 million shares.[BANNER]
While the gain on Monday may or may not have had something to do with SFOR’s press release about the company adding DWCC Ltd. as an European partner, yesterday’s performance has a more clear and defined reason.
An announcement about a Research 2.0 initial report appeared on the Investor Relations page of SFOR’s web site. One could wonder why SFOR hasn’t issued a PR about the report. One could also expect it will happen today when a $70 thousand promotion kicks in.
Research 2.0 provides “independent research”, still investors should keep in mind that they have been compensated by SFOR. Among the other praises, the report gives SFOR a 2012 target price of $0.51. This is, apparently, based on some research model of the company. It assumes SFOR will recapitalize its balance sheet.
The target is based on another assumption too – the accelerated revenue growth from now on. The Q1 results could support such an assumption, but until further financials are published it may be too early to jump to conclusions.
The recapitalization of all the debt into common stock would also mean massive dilution, which would hardly help SFOR get close to the target price. Of course, traders and investors can decide for themselves how realistic this target is. Additionally, promotions tend to provide companies with a spike, followed by an abrupt drop.
