Great Basin Scientific Inc (NASDAQ: GBSN)
Great Basin Scientific reaffirmed their guidance today for 2015 customer acquisition. The stock opened today at $3.45, up 51cents from the close on Friday. This represented a 17% gap. As the bell rang at 9:30am Great Basin Scientific surged up an additional 20% representing a 47% move versus Friday’s close.
It is not uncommon for small cap stocks to open with a large gap up and continue the run for the first 30-60min of the trading day. Warrior Trading News has published a day trading strategy called the Gap and Go that focuses exclusively on these types of stocks ( https://www.warriortradingnews.com/gap-go ).
As of 12pm in New York, Great Basin Scientific had already traded over 6 million shares. The stock is on track to have a record volume day. The previous record volume was 9.94 million shares traded on 3/31/15 when the stock surged 70% on news. The average daily volume is less than 700k shares. The stock is currently among the top trending stocks on StockTwits, a social media site for investors and traders.
Great Basin Scientific announced today their goal to increase customers by 70-80% by the end of 2015. “We are executing firmly against our plan to have 170 to 180 U.S. revenue-generating customers by the end of the year and another 40 to 45 sites in active and scheduled evaluations” said CEO Ryan Ashton. The Company is currently providing lap testing equipment for 101 small hospitals. This represents a 20% increase in customers using their technology versus the prior quarter. In the last quarter of 2014 they had 84 customers. ( http://www.prnewswire.com/news-releases/great-basin-reports-101-us-customers-to-end-first-quarter-reaffirms-guidance-for-2015-customer-acquisition-300064354.html )
About the Company
Great Basin Scientific is a bio-tech company that focuses on molecular diagnostic chip-based technologies. The company strives to develop cost-effective testing for infectious diseases and create equipment that can reduce misdiagnoses. (http://www.thestreet.com/story/13109842/1/great-basin-scientific-gbsn-stock-rises-today-after-announcing-increased-number-of-customers.html?puc=TSMKTWATCH&cm_ven=TSMKTWATCH ). The bio-tech sector is currently experience rapid growth that Great Basin Scientific has benefited from. The company has a market cap of $14million and a float of 2million shares. The company had its initial public offering (IPO) on October 9th, 2014. On the IPO day the stock opened at 7.12 and surged to a high 9.08. The stock has yet to revisit the high of its IPO day. With a current high today of 4.95, it is still well off those high.
Due to the low float Great Basin Scientific has already experienced more than 6 trading days in the last 6 months where it had a range greater than 40%. This is not uncommon for low float stocks to experience extreme volatility but it does make them susceptible to manipulators that seek to drive the price up and sell into the moves. The company has been marked as a potential vehicle for pump and dump manipulators as noted in an article posted on Seeking Alpha on April 6th 2015 (http://seekingalpha.com/instablog/39439616-kris-sidial/3887076-investors-beware-of-this-blatant-pump-and-dump-gbsn ). Investors unfamiliar with low float trading should always exercise caution.
Source Great Basin Scientific, Inc. www.gbscience.com