NEW YORK (TheStreet) -- Shares of Atossa Genetics (ATOS) are down 8.5% to $1.72 on heavy trading volume after the healthcare company, focused on the development and marketing of cellular and molecular diagnostic risk assessment products for breast cancer, was said to face liquidity issues, according to MarketsEmerging.com.
The site noted that in its latest 10-Q, Atossa states that it has sufficient resources to fund operations potentially only through Q1. "On a dubious note," Markets Emerging said, "the firm has apparently hired BDO USA as its accountant. BDO covered Robert Allen Stanford's $7B Ponzi scheme."
The company's stock had jumped 31.5% perhaps, Markets Emerging continued, on an optimistic report issued by Zacks Investment Research, after the company announced on December 19 that its subsidiary in Seattle, WA had begun pharmacogenetics testing as a service to physicians to assist them in prescribing drugs.
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Separately, TheStreet Ratings team rates ATOSSA GENETICS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ATOSSA GENETICS INC (ATOS) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has declined marginally to -$2.98 million or 8.72% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, ATOSSA GENETICS INC has marginally lower results.
- ATOS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.00%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ATOSSA GENETICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ATOS, with its very weak revenue results, has greatly underperformed against the industry average of 7.2%. Since the same quarter one year prior, revenues plummeted by 96.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- ATOSSA GENETICS INC has improved earnings per share by 40.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ATOSSA GENETICS INC reported poor results of -$0.68 versus -$0.44 in the prior year. This year, the market expects an improvement in earnings (-$0.50 versus -$0.68).
- You can view the full analysis from the report here: ATOS Ratings Report