In the first half of today’s trading session QuantRX Biomedical Corp. (QTXB) registered a huge jump in its share price which firmly positioned the company in the OTC Markets’ biggest gainers list. It is not very certain, though, whether the company will keep this position till the end of the session as at this stage the reasons for the stock surge seem rather speculative in nature.
In fact there have been no news releases whatsoever from the company or any significant filings which could have ignited the explosion of QTXB stock. In this respect the current surge in the value of QTXB shares would look like coming out of the blue, if earlier today we didn’t receive two newsletters touting the company.
The newsletters were issued by The Stock Psycho and Darth Trader a couple of minutes after the opening bell. Both promoters declared that they had not been compensated to alert QTXB and they didn’t own any position in the company.
Thanks to the charitable bout that had inflicted Darth Trader and The Stock Psycho QTXB stock generated enough trading interest to let the company become one of the notable advancers on OTC Markets today.
According to Quotemedia QTXB opened today’s session with a huge gap at $0.09 which is 400% higher than the previous close at $0.018. Shortly after the opening bell QTXB hit an intraday high at $0.139 per share or 672% higher than the previous close. At the moment QTXB trades at $0.055 per share while the trading volume is close to 3.8 million which is more than a hundred times higher than the average.
Apparently QTXB is experiencing a huge buying pressure at the moment, which is caused not only by the free-of-charge promotion but also by the fact that the company looked cheap with its market cap below $1 million. According to OTC Markets the exact market value of QTXB as of June 03, 2013 was $945,516.
However, QTXB still remains a rather speculative play and there is a series of red flags which suggest that the hype around the stock may not last long. On the first place the company hasn’t issued any news updates recently which is not a welcomed sign by most investors.
The company also doesn’t seem to pay much attention to its online presence as its corporate website listed on its profile on the OTC Markets leads to an “under construction” message. Truth be told, QTXB has had plenty of time since its inception to establish a proper corporate website.
Last but not least QTXB doesn’t seem in a good financial health. Since its inception the company has accumulated a deficit of more than $49 million. According to the last quarterly report QTXB held a working capital deficit of more than $600 thousand as of May 31, 2013 which is hindering the realization of its business plans.
The company has historically financed its operations primarily through issuance of equity and it is obvious that the management will have to continue seeking debt or equity financing in order to continue as a going concern.
QTXB is a company which develops and intends to commercialize its PAD based products for the treatment of hemorrhoids, minor vaginal infection, urinary incontinence and other medical needs. According to the last 10-Q filed by the company it had 52,528,644 shares issued and outstanding as of May 17, 2013.
Thanks to the increased demand, which was produced by the two promotional newsletters mentioned above, the value of QTXB stock exploded today on a heavy trading volume. However, QTXB is not likely to provide enough fundamental support for this bullish run in the long term, so market players must be extremely careful with their positions in this stock, especially once it stops being covered by promoters.