Transgenomic, Inc. (OTC:TBIO) has been moving up progressively during the past couple of days. Yesterday, the stock added 
the next 10.40% to its price and its traded volume jumped over 451 thousand shares.
Luckily, the last news by the company can easily explain the sudden up move of TBIO. Over the past weeks, Transgenomic has been constantly releasing positive announcements on its activities, as well as on its financials. Apart from these, a New Star analyst ranked the company online.
The noise around TBIO pumped up the stock price at once and now everyone is curious to see what its next move will be. In any case, the company hurried to secure its chart position by its earnings release.
On Wednesday, TBIO announced that its quarterly revenues have increased by 87% year-over-year, reaching $8.3 million. In addition, the company reported its new distribution agreements with A. Menarini Diagnostics and ScreenCell. However, the negatives on the balance sheet of Transgenomic were not mentioned.[BANNER]
According to the company’s 10-Q, its working capital has decreased due primarily to the payment obligations of TBIO related to their notes payable and capital leases, and increased accrued liabilities. The management believes that their existing sources of liquidity are sufficient to meet expected cash needs into 2012.
However, historically TBIO has operated at a loss and financed their operating losses through borrowings, so they might need to secure additional funding in the near future. Otherwise, Transgenomic may not have sufficient sources of liquidity to continue their operations indefinitely.
