In yesterday’s trading session, the stock price of TapImmune Inc. (OTCMKTS:TPIV) made a comeback and recorded gains of more than 2% to close at $0.650. The gains came at a massive share volume of 1.85 million compared to monthly average share volume of 840,075. With this the stock of TapImmune recouped a major part of losses recorded in last week.
A look at the company’s recent state of affairs indicates everything is in order. The news coming from the internal management tends to be promising, and considering the claims in PRs, TapImmune is making actual progress in terms of launching a product in the market.
TapImmune financials don’t appear half bad either, particularly for a pharmaceutical OTC firm with no revenues. The revenue in last reported quarter was $0, the loss from operations at $1.1 million and cash reserves at $3.1 million. The current assets stood at $3.2 million while current liabilities were $13 million.
The problem is the figure next to “liabilities” appears extremely high. However, through analysis reveals that most of said amount is due to derivative liabilities, while the actual debt is not that astounding.
It is vital to note that none of the current outstanding debt looks to be of the crushing toxic convertible variety. But, in this matter, it is not the TapImmune present stock issuance associated shenanigans that investors should be worried of, it is the company past funding decisions that can create problems for the investors.
Some time ago, the company reported a private placement and offered investment units worth 12.3 million at $0.20 per share. Each of said investment units comprised of one share of TapImmune common stock and a varying count of warrants for the more stock buying at fixed prices.
TapImmune Inc. (OTCMKTS:TPIV) formed a Doji candle pattern on the daily chart as the final closing price of the last session at $0.65 was almost the same with the opening price of the day at $0.64, reflecting the totally indecisive mindset of the investors in the short term. This Doji pattern can either be the precursor of a reversal in the short term trend or a pause in the prevalent trend, which can be clarified by only the pattern of the next couple of candles. The proximity of the major supply band of $0.70-$0.80 may increase the chance of a reversal.