Bluejay Diagnostics (NASDAQ: BJDX) stock is up 60% or so yesterday. OK. BJDX stock is a microcap ($3.5 million market capitalisation at the start of this) and such price movements can indeed happen. It’s just the nature of the game, small changes in buying behaviour will have a disproportionate effect upon microcap share prices. The thing that’s truly surprising here is the volume of trading in the stock. Average daily trades are perhaps 70k (others say 700k) in volume. Yesterday’s trade was more like 35 million.
And, you know, we don’t believe that number. Think it through, the stock’s around $3.50 (all numbers rounded, just to make it simple to see), market cap’s around $3.5 million and trade is 35 million shares? That means trade is 35 times the entire issued stock of the company in one day. And that didn’t happen. Simply because we don’t see that sort of trade volume but also because if we did we’d see very much more than 60% changes in price.
We think the error is in something we’ve said before about Bluejay Diagnostics: “Blujay Diagnostics (NASDAQ: BJDX) stock will jump some 2,000% at the open today. BJDX stock leaping that 20x is, though, a purely technical response, it's not in fact anything interesting. Interesting as in the sense of their suddenly starting to make money or anything. Bluejay did rise 16% on Friday after the news of this upcoming event and rise, and that's what the real price change was here. The 20x is purely nominal.” That was a one for 20 reverse stock split of course.
Bluejay Diagnostics stock price from Google Finance
What we’re really pretty sure is happening here is that the exchange is reporting stock turnover based upon the pre-consolidation share count. That would make the real stock trade number more like 1.5 to 2.0 times total stock issuance. Sure, that’s still high but in a microcap like Bluejay not impossible if people get really interested.
As to why the price change, well, there was a stock issue which depressed the price (as we said there was likely to be a stock issue, of course) and we think this is all just a bounce back from that. There’s no other news concerning the company.
Which brings us to our real point here. It simply isn’t true that all the information out there can be trusted. Yes, even information from the exchanges can be subject to glitches, as here. If a number looks unbelievable it’s worth checking - simply because it might well be unbelievable, in the sense of not being true.