If the investor message boards of Advanced Medical Isotope Corp. (OTCMKTS:ADMD) is analyzed, there are many people who are calling the company a ‘diamond in the rough.’ What is the reason behind such popularity of the company? It is not definitely because of the financial numbers.
The last 10-Q report covers 3Q2014 results and states that at end of September 2014, Advanced Medical had cash of $525. Here, no thousand or million word is included with the figure stating that cash position is dismal. The working capital deficit was $9.5 million, no revenues and a quarterly net loss of $866,000.
The poor performance
The latest 10-Q report also reflects that the stock has been adversely affected by the devastating dilution. In the first three quarter of FY2014, the count of issued and outstanding shares surged to 345 million from just over 120 million.
Between September 30, 2014 and November 10, 2014 another 208 million shares witnessed the light of day. A large part of them were issued as a conversion of debt. So, on basis of financial numbers Advanced Medical doesn’t appear a precious stone or a diamond in the rough. However, the stock performance in the past few weeks has been splendid.
Advanced Medical stock price first surged in December when few press releases directed it out of triple-zero land. In last week of January, it posted another strong run. In almost last one month, ADMD stock price has jumped more than 230% and yesterday, it surged more than 50% to close the session at $0.00330 for the first time since last October.
The strong momentum started in December with series of press releases. A PR released on December 23, 2014 stated that Advanced Medical filed a de novo submission for Y-90 RadioGel with the FDA. It will be considered as a Class II medical device.