In yesterday’s trading session, the stock price of Therapy Cells Inc (OTCMKTS:TCEL) declined 50% to close the trading session at $0.00040. The decline was supported by massive share volume of 341.78 million compared to average monthly share volume of 31.05 million. Prior to that, the stock closed almost flat, in spite of all the intra-day decline and spikes.
The decline recorded in yesterday’s trading session is not at all surprising. After all, to know where a stock may be moving, one needs to do some thorough analysis of the company’s overall performance. Well, Therapy Cells has not filed its financial report for the second quarter of 2015. As a result, its OTC profile highlights a red warning sign which is comparable to a glaring hint.
There is no evident way to know how company is performing in these days. However, if the last report is analyzed, the investors are going to feel disappointed. As per the last filed report for 1Q2015, Therapy Cell reported cash of $246, with no thousands added to it. The total current assets came at $51,000 whereas the total liabilities stood at $918,000. It has generated no revenue since inception and net loss in 1Q2015 was $7,000.
Even after reading the numbers, there are many investors who are inclined to stay invested in the stock. Well, they should not disregard the horrible state of share dilution. As of March 31, 2014 Therapy Cells outstanding share stood at 153 million which then surged to 1.7 billion in a matter of just one year. The numbers clearly indicate there is a lot of dilution going on, and therefore utmost caution should be followed before any making any substantial investment.
Therapy Cells Inc (OTCMKTS:TCEL) experienced a sharp decline from $0.0011 to $0.0004 in just 2 sessions and the loss of 50% suffered in the last trading session was just a part of it. The volume surged to 341 million against the much poorer daily average of 60 million, reflecting a strong bout of capitulation on the part of frustrated investors. The stock is already trading in the area of the lowest 5 ticks possible and only 3 ticks away from the lowest tick of $0.0001. The congestion zone of $0.0003-$0.0004 can provide a little bit of support but a retest of $0.0001 can’t be ruled out.