Great Basin Scientific (GBSN) - Let’s do the analysis..
Ziyad Nazem the Author, does not hold any current positions in GBSN or the competitors in this article. Now, let’s ignore anything else about GBSN and look a technical only analysis of the company.
Great Basic Scientific (GBSN), is a rapid diagnostic medical test (Nucleic Acid Assay Testing) firm. After reading company filings, the company faces competition from at least 11 larger competitors (based on revenue estimates) with revenues ranging from $20 million to $49.8 billion compared to GBSN’s 2014 annual revenue of $1.6 million.
Is GBSN a pump and dump? It could be, but we’re not coming to any conclusions yet..
Dawson James Securities, Inc., the underwriter of GBSN’s October 2014 IPO and its February 2015 secondary offering, is headquartered in Boca Raton, Florida where many pump and dumps we have come across are born.
GBSN appears to be in continual need of capital, and they have a high cash burn rate. They raised $8 million during the IPO in October of 2014, giving them a post IPO cash balance of $11 million.  At the time of GBSN’s $24 million secondary offering in February of 2015, the cash balance was sitting at about $2 million.  GBSN’s 2014 annual sales were a meager $1.6 million compared to a fully diluted market cap of around $158 million.
We are still in the process of performing our due diligence into the company’s product and competitors. However, here are some of our initial thoughts:
GBSN is not the only company with Nucleic Acid Assay Testing. There are several mentioned by the company including:
Cepheid (NASDAQ:CPHD)
Nanosphere Inc. (NASDAQ:NSPH)
Meridian Bioscience Inc. (NASDAQ:VIVO)
Qiagen N.V. (NASDAQ:QGEN)
Roche Diagnostics (ROG.VX)
Quidel Corporation (NASDAQ:QDEL)
T2 Biosystems Inc. (NASDAQ:TTOO)
Becton Dickinson And Company C (NYSE:BDX)
Genmark Diagnostics Inc. (NASDAQ:GNMK)
Hologic Inc. (NASDAQ:HOLX)
BioMerieux (BIM.PA)
Again, this is a preliminary overview of my take on GBSN and more details may be forthcoming as due diligence progresses. Be advised that when dealing with speculative pump and dump style stocks, especially in the biotech arena, there is always a risk of unexpected and unreasonable runs upward.
