Roka Bioscience Inc (NASDAQ:ROKA)
Roka Bioscience Inc (NASDAQ:ROKA) shares are up almost 50%, to $0.53, on heavy volume despite the lack of any publicly available news that could account for such extreme price action. The company’s last press release was in August of 2017.
Roka Bioscience Inc (NASDAQ:ROKA) is a molecular diagnostics company that develops, markets, and sells advanced testing solutions for the food safety testing market. Their lead product is the Atlas® Detection Assay that integrates proprietary technologies into their Atlas System which automates all aspects of the diagnostic testing on a single, integrated platform. The Atlas System and Detection Assays are designed to provide customers with accurate and rapid test results with reduced labor costs and improved laboratory efficiencies.
Roka Bioscience Asset Sale
In August, Roka Bioscience Inc (NASDAQ:ROKA) announced that it entered into an asset purchase agreement with Rokabio, Inc., a wholly-owned subsidiary of Institute for Environmental Health, Inc., for the sale of substantially all of the assets of Roka Bioscience in an all-cash transaction for an aggregate purchase price of $17.5 million. Shares lost 9% the day the asset sale was announced and have been in a downward trajectory until a few days ago when shares gapped up and briefly traded about the psychologically important $2.50 level.
ROKA Stock Performance
The market capitalization of Roka Bioscience Inc (NASDAQ:ROKA) is less than $7 million with a float of 4.33 million shares. Investors have not had a good year. Year to date, ROKA shares have lost around 75% and, prior to today, lost over 34%. Reports have analyst’s consensus, one year price target at $10.
Sales have been improving every year. In 2012, the company reported just $100,000 in sales but that number improved each year and, in 2016, the company posted $7.2 million in sales. However, the upward momentum has not been seen in earnings. For 2016 the company reported a per share loss of (-$17.42), which was better than the loss of (-$21.18) reported in 2015, and the per share loss of (-$29.30) reported in 2014.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.