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Sunday, June 08, 2008

PLBI Stock Gains More Than 130%. Still Has Hurdles to Overcome

Friday's gains of 130.77% ($0.03) demonstrate that Proton Laboratories, although well below its all-time high share price of $2.49, is building some momentum in the market. The company is currently seeking financing of $1 Million with an aggregate line of equity of $6 Million in order to facilitate bringing their mister product to market.

In recent weeks, PLBI has announced results from Hill Top Research backing the efficacy of its electrolyzed water and its effects on MRSA (Staph) along with its licensed and proprietary cooling tower process that utilizes the company’s advanced electrolysis technology. As we hope for more news in coming weeks lets take a look at why now may be a most beneficial time to consider taking an ownership position in PLBI.

The company began trading back on January 14, 2004 at a price of $0.85. Within just a little over nine weeks, PLBI saw gains of 188%, hitting $2.45, just four cents below its all- time high. Since then, stock price has fallen dramatically, hitting as low as $0.013 on June 6, 2008 on volume of a measly 6,000. This decrease is attributable to the company’s first line of equity of $10 Million from EFUND SMALL CAP FUND II, LP that gave the equity line investor the ability to convert stock at a discounted rate, which ultimately diluted the value of the stock.

Friday’s gains are promising however, because although PLBI is trading at just $0.03, the market has taken notice of their technology and its benefits to our environment, a topic that is all over the news and on the top of presidential candidate’s agendas.

PLBI’s efforts now appear to be focused on securing financing for its mister product, which in return will give them the ability to expand operations and enter into additional markets of interest as their technology becomes recognized as a leading, affordable solution to a growing global problem.

If PLBI can't secure critical funding for its mister product, share price will likely continue to hover in the low penny range and potentially force the company to take on unfavorable equity financing to fund operations.

With this in mind, Proton Laboratories has several key hurdles to overcome before achieving potential greatness, but management is determined to fix them and doing so will be a huge help to their overall success. This being said, my recommendation is to keep a close eye on PLBI over the next few weeks because history tends to repeat itself and any positive news should boost the stock after Friday's surge.

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