As a few have pointed out, Dermisonics has been trading down of late on an almost daily basis. I have suggested that if the stock was getting past your pain threshold, to simply sell it and move on.
Today, just before the market opened, we learned why the stock has been trading so poorly of late, and it’s about as ugly as it gets.
Dermisonics has been “warned” by NASDAQ competitior Sontra Medical (SONT) that its transdermal insulin delivery systems will infringe on SONT’s patents in this area. The news release does not specify there has been a lawsuit filed- it states “upon commercialization” they would be infringing.
I have no way of gauging whether this news is a death knell for their technology, however, my guess is the news will effect the company in a major negative way from another front.
As I have noted in the past, DMSI needed to raise capital in order to continue its development. This news will certainly hamper the company’s ability to raise cash, and perhaps choke off its resources all together. I know the company was attempting to raise money in a very creative overseas financing which would not have been toxic to shareholders. My guess is that process will now be signficantly derailed.
No two ways about it- this chart is ugly. My advice- sell this one, take your loss, and move on. I have seen many situations like this in the past, and they rarely right themselves in the intermdiate term.
In the short term my guess is the stock could bounce back up a little. Today’s news was published by SONT, and DMSI has not responded yet. DMSI will probably put out news stating SONT’s claims are without merit, and the stock could rebound a little from there. That would be your opportunity to sell.
Hopefully, you are holding one or two of the OTC Journal’s recent wins to offset the pain here. I know most who invested in this company own it between $.80 and $1.00. As I write today’s BLOG, it is trading at pitiful $.36.
When speculating on microcap stocks, sometimes it happens. It’s like cancer. The best thing you can do is cut it out and let the patient heal.
I will now be formally dropping coverage of this company. There are better situations to look at.
Wish me luck, I bought today at $.38. Just a small amount, 3000 shares. This will probably be a trade if we get a kick dead cat bounce.
Editor: $.50 would be a good target in my view.
Good idea Tom, I grabbed some at .37 and .39. I bet ur .38 bid is what made me not get any more at .37 hehe. 7200 shares total, should be a nice little return if they ever announce they acquired more funding!
Editor: Good luck to you contrarians.
Congratulations to you two guys above. Unforturnately, I bought DMSI at average $0.75 per share, (ouch) and held onto it because i had confidence that their product (no pun intended) was a solid advancement towards the daily treatment of diabetics and would eventually skyrocket. After watching this stock decline day after day, i just sold my shares today at $0.45 (ouch again) to get out of this misery. Live and learn. However, TLPE help today to offset the DMSI loss. The next stock to dump is UPSN as soon as it / if it comes up a little bit to cut my losses. Walt
Editor: I’m with you there. UPSN is too whacky. The only way to be in that stock is to buy it when it performs one of its one day swoons. Very unhappy about that one. You will always be better off accepting the losers and moving on. Consider MDSM for the DMSI money. That company is going to get very interesting.
a german analyst initiated a spec buy rating on dmsi yesterday, do a google to find it. It’s in German, but there are translators online to help out! =) Might be some news overseas that we don’t know about yet? Sounds like a good thing….we’ll see in the weeks to come.
Editor: I have officially dropped coverage. I’ll be taking this BLOG down soon as well. If you want to hang in there, good luck with it.