VeriTeQ Corp. (fka VTEQ)

[tpham83]

Questions & probable answers
I was asked a question in PM but right now I don't have PM until I renew my subscription. So I will answer it here.
Q: Why do I think the 8-K will help and if the stock goes down further, how much further?

A: I think the 8-K will help VTEQ due to the exposure to PSID for the new-comers who do not know anything about this company and its background with PSID. All they see is the PPS keeps dropping with no cause. Most of us suspect dilution, and they're right, it is. The O/S went from 30M to 60M in a few months. The A/S was raised from 100M to 500M in June I believe. So of course that is dilution. Most of us are trained to think dilution is a bad thing and yes they're correct, dilution hurts the stock because it de-values your shares and makes it harder to move up. However, you have to ask yourself why they are diluting.

Are they diluting because they're a Pump and Dump?

Are they diluting because they need the money to keep the company going until they can catch a break?

Are they diluting because they need to pay debt?
Is it really them? How about convertible notes and third parties?

Let's take a deep look at some of these questions and try to answer them:

The popular answer to dilution is P&D. But are they really? VTEQ and PSID used to be both the same company, Digital Angel (DIGA). DIGA and PSID once were on the NASDAQ.
So do you honestly think they're a P&D?
Did they get de-listed because they were fraudsters?
Or was it another cause?...Maybe the world wasn’t ready for them in 2006. Go youtube “Verichip” to see what I mean.

Let's talk about PSID, would PSID have a DHS contract with ENSCO if they were a P&D? Would a company on its way back up be vested in a P&D?

Let’s take do some digging and see the history of the two companies:

http://en.wikipedia.org/wiki/Digital_Angel

http://en.wikipedia.org/wiki/VeriChip

As you dig deeper you see these two companies are like parent and child or siblings. They weren’t getting along for a while but now seems like they’re making up.

So how does the 8-K help VTEQ? It explains why they’ve been diluting and trying to raise capital with all the form 4’s. They going to work with PSID to create a new bio-sensing technology with their current portfolio of intellectual property. Something BIG is on the horizon. Bad companies don’t go out of their way to raise capital. P&D companies will just put out a trash PR and dump shares and let it crash. This company does not put out trash PR’s. Look through the recent PR’s and tell me if they’re trying to pump it. They could’ve played this stock as an ebola stock but they didn’t.

Other question: do you think this stock will drop? If further how much?

Honestly, no one can predict what PPS will be. You have to follow your own set of rules for buying and selling. My rule is, on a stock that’s on a down trend, I usually wait for what I THINK the bottom is…typically a few weeks trading within a range and building a base. OR I wait for a large bullish reversal…like a bullish engulfing pattern. So do I think the price will drop further? Yeah most likely because of the convertible notes and dilution. For people who want to get in, I would wait until the price builds a strong base. Looks right now it’s between .002-.0022. I would start getting in a very small steak at this level and average down. That’s only me though because I believe the upside is huge compared to losing only couple hundred dollars. Stocks usually trace back to its 50 MA and 200 MA within time. If you look at the 50MA…well you know the potential profits.

Don’t forget the FDA has MANDATED the UDI final policy starting THIS month. Do you STILL honestly think there’s NOTHING going on and NOTHING is being done to improve this company?

http://seekingalpha.com/article/1939671-new-mandate-will-help-sell-veriteqs-fda-approved-microchip

http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/UniqueDeviceIdentification/CompliancedatesforUDIRequirements/default.htm