Stellar Biotechnologies Inc (NASDAQ:SBOT)
Stellar Biotechnologies Inc (NASDAQ:SBOT) failed, on heavy volume, to rise above the $1.38 high reached on October 13. SBOT stock jumped in the morning from an open at $1.15 but after 90 minutes sellers jumped in and pushed the shares back down to $1.22. There have been no news items coming across the wires that may have explained the early jump in price.
Port Hueneme, CA-based Stellar Biotechnologies Inc (NASDAQ:SBOT) has a market capitalization of less than $12 million and a stock float under eight million. The global biotechnology firm specializes in aquaculture, research and development, manufacture, and commercialization of keyhole limpet hemocyanin (KLH) protein. KLH is an immune-stimulating protein used for generation of antibody and cell-mediated immune responses against disease indications such as cancer and immune disorders. It provides its products under the Stellar KLH brand name.
Sales have been increasing for the past three years. In 2014, sales were posted at $400,000 and in 2016 the figure was an impressive $1.3 million. However, share dilution has been plaguing investors. In 2014, there were 7.58 million shares outstanding and that number grew to 8.83 million by 2016. Also of concern is the lack of profit – losses have been posted by Stellar Biotechnologies Inc (NASDAQ:SBOT) since 2012. For 2016 the per share loss was (-$0.57), a worse loss than the (-$0.36) shareholders experienced in 2015.
Zack’s investor Services covers SBOT stock and assigns the shares a rating of “Strong Buy”. However SBOT stock has lost over 46% for the past year, and is down over 17% for the quarter. Still, as of this writing (1 PM EST), shares are up almost 7% for the day. A casual review of a SBOT daily stock chart shows that for the past couple of months, SBOT shares have hit significant support at $1.10.
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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.