As I said yesterday, it is all about price and volume action. So one or two things are going on here. Either:
A: With the lack of volume today, so far, and the stock being down, it is possible that the short term sellers are almost out of the stock and it could start to move higher.
-OR-
B: This was a pure pump & dump play and the hype on Ebola is over along with SIMH.
If we all look at this with practicality I would think that 'B' is the more practical choice. The problem with this company and this product is that it is an FDA approved device which really only means something in the United States. Also, once you own one the company has nothing else to sell the buyer. Since the spread of Ebola seems to be over in the United States the hype for SIMH is most likely over too. I notice a year high of $4.75 and a year low of .015c. There is a reason why the stock dropped to a penny and a half and it seems very doubtful that it will get back to its loftier levels. Even if the company sold a bunch of these thermometers as a preventive measure for future Ebola type situations we have to ask ourselves how many could they really sell overall? 5,000? 10,000? 50,000? Even at 50,000 units at $75 a pop you are only looking at 3.8 million in sales. What is their profit margin?
So boys and girls it seems more likely that not that SIMH is DOA and so are the investors who purchased the stock.
