Shares of Great Basin Scientific Inc (NASDAQ:GBSN) are seeing a much needed rally today on the tail of yesterday’s initiation of that rally. While the stock has plunged more than 98% since the end of November, wiping out over $200 million in market cap, investors may finally feel like the stock has a greater reward ahead than the risk involved in the form of further dilution.
This risk was alleviated somewhat on Wednesday after the company filed an 8K showing the extent of possible dilution. To many shareholder’s surprise, the number of shares outstanding is still at 61,770,877. With that said the company also gave figures on the future dilution that may be coming once Series D warrants and other derivatives are converted into shares. Great Basin Scientific Inc (NASDAQ:GBSN) said that approximately 120.2 million shares are reserved for these purposes. While it’s not great news for shareholders, it does quantify the extent of possible dilution over the months ahead.
With the stock price trading 98% lower, there seems to be some room for a bounce back, and with possible FDA news on the horizon, it could be time to at least consider a position in this stock if you have a very high risk tolerance and trust the company’s executives. On the other hand, penny stocks like these are known for their high fluctuations, scamming mentality, and lack of information. Buyer Beware.
The stock is currently trading higher by 34.15% or $0.071 following the positive news, hitting $0.278 per share at the time of us publishing this article. About 32.59M shares traded hands or up 433.39% from the average. GBSN has declined 99.89% since June 17, 2015 and is currently downtrending. It has underperformed the S&P500 by 91.03%.
The institutional sentiment decreased to 1.6 in Q2 2015. It’s down 1.07, from 2.67 in 2015Q2. The ratio dived, as 5 funds sold all their Great Basin Scientific Inc shares they owned while 0 reduced their positions. 4 funds bought stakes while 4 increased their total positions. Institutions now own 7.69 million shares which is 2268.79% more than the previous share count of 324,542 in 2015Q2.
Green Owl Capital Management Llc holds 0.31% of its total portfolio in Great Basin Scientific Inc, equating to 3.99 million shares. American International Group Inc owns 533 shares representing 0% of their total US portfolio. Moreover, Blackrock Institutional Trust Company N.A. has 0% of their total portfolio invested in the company, equating to 147,378 shares. The Illinois-based Citadel Advisors Llc has a total of 0% of their portfolio invested in the stock. Citigroup Inc, a New York-based fund reported 64 shares owned.
Great Basin Scientific, Inc. is a molecular diagnostic testing company. The company has a market cap of $5.46 million. The Firm is focused on the development and commercialization of its molecular diagnostic platform designed to test for infectious disease. It currently has negative earnings. The Firm has a commercially available test, a diagnostic test for clostridium difficile , which received clearance from the Food and Drug Administration (FDA).