Verisante Technology Inc. (CVE:VRS) (PINK:VRSEF) stock price found a secure support but fails to entertain the bulls even under influence of promotion.
VRS stock hasn’t shown much reaction to a recent promotion by a newsletter that’s been floating around. The stock ended up with a 1.3% loss on Thursday.
The stock was promoted in a newsletter that came out amid the trading session on Wednesday. InvestorIdeas.com apparently picked up the stock for free, which explains the lack of response on the market.
The newsletter reposted Verisante’s news from October 19 and hasn’t added much of additional information. Back then, the company announced they have obtained a license to sell the Verisant Aura in Canada. The medical device is one of two Verisante’s products for early cancer detection. Approval in Europe and Australia is expected by the end of 2011.
Looking back, the same news had put a stop to the share price decline after the publication and helped in creation of one more support at 76 cents. The stock has been trading around this level for quite some time and is based mostly on Verisante’s potential.
The company holds a market cap of $44.5 million, which is significantly above their net tangible worth of $5 million. VRS had no revenues reported in the last quarter and are constantly issuing more capital stock to cover up expenses.
Apparently, the company holds enough potential to retain the rather too high market capitalization because of the technology they’re trying to start selling. The next two approvals are likely to yield similar temporary increases in the share price, but sustained gains should not be expected until actual revenues are in sight.
