Tbh, I am expecting it to test near the 52 week low within the next two months. If im wrong great! I guess we will see.
I liked the update from the CEO, but I think he is wrong about a few points. Firstly, the CEO said the following:
"Unfortunately the market did not react favorably following our data announcement, and BSTG traded down approximately 15% that day, it appears largely due to funding concerns despite our March 31, 2016 cash position of $4.8 million."
There are so many institutional companies listed on Yahoo Finance for this stock. That in itself is a strong indication that there are plenty of other investment firms out there that would love to give them money. I do not know why the CEO thinks the fact that they were low on cash led investors to believe that they wouldn't be able to get funds. Thats bs. I think my second point addresses this in more detail.
Secondly, he mentioned nobody likes dilution. We get that but when you do a $5 million offering and the company at the time was near $20 million market cap....now at $14 million...what does he expect will happen? Of course people will be selling thats a lot of dilution. That is the main reason why people sold.... Not because they were worried if the company was going to get money...they knew they would get it...they were worried about the amount raised and overall dilution.
He made it seem like investors were worried that the company wouldn't be able to get capital...but in reality this is false... Investors saw that 4.8M cash balance and thought to themselves.... "How much will they need and what are the implications related to dilution?"
Just my overall thoughts and opinions on the update. Let me know what everyone thinks!
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