Volume Spike Investor

It looks a lot like Power Medical Interventions, Inc. (NASDAQ: PMII) should have had its own intervention.  The company released earnings yesterday and Wall Street isn’t trusting its addressing challenges that slowed the adoption of its new products.  Sales were only $2.2 million, which was flat and more importantly the company lowered its guidance.  It now sees a wider than expected loss at $36 to $39 million on $10 million to $14 million in sales.

While its market cap was $85 million before this morning’s drop, these shares are being murdered.  We are seeing a 50% haircut to $2.40 on only about 8,600 shares having traded hands.  Its 52-week trading range was $3.71 to $14.64.  This stock only trades about 23,000 shares per day, and you can bet you’ll see quite a bit more than that as this company has only been public since early this year.

8:53 AM EST

Jon C. Ogg
August 14, 2008