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Dhaka Tribune

SenesTech (NASDAQ: SNES) up 104% on, what? Rat contraceptives you say?

What we’ve really got here is wild speculation in a micro-nanocap stock. Most fun, of course.

Update : 13 Nov 2023, 07:07 PM

SenesTech (NASDAQ: SNES) stock is up 104% this morning. This is after a 31% fall on Friday. So, clearly we’re in the middle of some wild speculation. There are several things to be said here and the most obvious is that the base idea of the company isn’t bad at all. Ys, OK, it sounds  little odd when describe as rat contraceptives but it’s not, not really, all that odd at all: “SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. The company offers ContraPest, a liquid bait that limits reproduction of male and female rats”

The problem with trying to poison all the rats is that once a population is wiped out then another will simply move in. It’s also true that trying to poison rats leads to many other animals also being poisoned - especially any that might prey upon them. So, yes, folk would like a different system. Maybe one that simply limits the size of the rat population would be that thing.

The problem though is that SenesTech doesn’t seem to be very good at this. The stock price has fallen - split adjusted - from near $300 to the current levels since 2019. 

SenesTech stock price from Google Finance

Along with that stock price obviously the market capitalisation hsa fallen as well. It’s currently well under $1 million. Not just a microcap, but a nano-microcap possibly. So it really doesn’t take much change in buying by only a few people to drive considerable changes in the stock price. 

Now, it is possible that this really is about to happen: "We accelerated our growth trajectory during the third quarter with strong 44% year-over-year growth in revenues driven by the initiatives we have undertaken to drive sales, improve our product quality, and expand our product options," commented Joel Fruendt, SenesTech's President and Chief Executive Officer. "We expect this growth to further accelerate as we launch our Evolve Soft Bait, the first and only soft bait developed to control pest populations using a breakthrough technology that targets the rat population where it starts, by restricting fertility through nonlethal methods. We have received pre-orders and expect to start shipping product next week."

If there is going to be a turnaround then obviously it does have to start at one particular point. We don’t know whether there will be such a turnaround, obviously. But at least so far we’d suggest that this is just one of those flurries of speculation that microcaps can be subject to, not a solid investment in that turnaround happening right here, right now.

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