The following commentary about health stocks was written by Ankit Gupta, who blogs about investing at Selected Financials.
On Tuesday, Authentidate announced $3.4M of capital being raised through the issuance of common stock and warrants, underwritten by Rodman & Renshaw (RODM) .
The warrants are only good for 90 days, though, and exercisable at $1, with the stock recently trading right at $1. There is a clear bet from the investors that something will happen in the next 3 months, causing the stock price to go significantly above $1, making those warrants actually worth something. If the stock stays at its current level, these warrants could be worthless.In the last quarterly report, we saw inventory for telehealth devices increase. These are sold through ExpressMD. The data in the following table image comes directly from their quarterly report. For a company that has such little cash, had to raise $3.4 million, get emergency financing for $3 million from a board member's family member, this is a significant move.
| Sept. 30, 2009
|| June 30, 2009
| Purchased Components
| Finished Goods
| Total Inventory