Adamis Pharmaceuticals (NASDAQ: ADMP) stock is back down 40% this morning, After yesterday’s up to 480% rise in ADMP stock that is, although the close was at 170% up. The net of this - at least so far, - is that ADMP is up about 80 cents, or perhaps 50% overall. Which is nice, sure it is, although less nice for those who bought in yesterday at $7 and the like. From which we can draw an interesting little lesson. Sure, microcaps ($11 million market capitalisation although that obviously depends upon which hour we use here) can have volatile stock prices. We’re traders, we want volatility. But we also need to be on the right side of that volatility and it’s not obvious that all that many people were here. For there was no real reason for the rise, no real reason for it to stop either. Opinions changed out there and so that’s what happened.
We’ve looked before at Adamis: “Adamis Pharmaceutical (NASDAQ: ADMP) stock has not done well for investors these past few years. 89% value destruction in the past 12 months, 99% in the past 5 years, 26% down just on the one day, last Friday. The ADMP stock price will rise by a factor of 70, or 7,000%, at the open on Monday. But sadly this will be a purely nominal price change unlike all those falls which were real money being lost. The reason is of course that the past performance has meant that a reverse stock split must be undertaken.
Adamis Pharma should, we might have thought, be doing well. They're working with allergy treatments and we all know that allergies are on the rise. They do opioid overdose reversal treatments - we're all aware that those are being used more and more. It's just that despite being in these right areas the company never really does seem to succeed. The last annual results (the 10K) showed that revenue was of the $5 million level, cost of goods sold was more like $6 million. So there's a gross loss - even before we get to overheads, research and all the rest. Add all of those in and we get to a $25 million loss for the year. It's possible to see why the stock price has been dropping. They also had a million in cash, not a lot to face such losses with. Sure, they issued more stock to raise $3 million but that's not a lot in the face of such results either. “ 
Adamis Pharmaceuticals share price from Google Finance
Now, yes, the business has changed since then. They’ve been able to sell off the rubble of their compounding business. They’re now to concentrate on their alternative to Narcan (the fentanyl reviver). But they still face that basic costs problem. So, no, we don’t see it here - other than as merely a bounce around in a small cap stock at the whims of the crowd.
