The downward pressure on shares of Applied DNA Sciences Inc. (NASDAQ:APDN) has barely relented since November. Since hitting a low of 90 cents last Thursday, shares have been galloping ahead, though, including the stock being one of the best on the NASDAQ on Tuesday.
The rally got legs following a new release after Friday's closing bell that Applied DNA, experts in molecular technologies for security uses, received an initial order to tag 27.5 million pounds of cotton with its SigNature T DNA. The technology fills an important supply chain need for traceability and transparency.
Today, APDN pressed two different pieces of news. Before the markets opened, the company said it completed initial work under a contract with Aloe vera product maker Lily of the Desert. The goal of the pilot studies are to prove it's possible to create the industry's first traceable and authenticated Aloe vera juices. Proving Aloe vera content is critical within the $2 billion Aloe vera extract market, as exemplified by a class action lawsuit filed against CVS (NYSE:CVS) alleging that there is actually no Aloe vera in CVS branded Aloe vera gels.
APDN believes its technology can overcome shortfalls with traditional Bar Code of Life DNA identification used today to properly identify Aloe vera in finished goods. The company has previously documented its ability to authenticate Aloe vera with its Molecular SigNatures technology, so it doesn't expect any surprises in this study with Lily of the Desert.
While investors digested that news and reacted to the news from late Friday, APDN published another piece of news, disclosing a new license agreement with Himatsingka America. Himatsingka is part of the global home textile major The Himatsingka Group. The two companies already had a relationship and little details were provided on the new pact, which could simply be an extension of the current agreement.
Himatsingka will continue to its global reach to introduce Applied DNA's leading edge track and trace technologies to its clients across the cotton value chain.
Investors are cheering the barrage of positive news, sending shares as high as $1.88 in Tuesday action after closing Monday at $1.40. As the lunch hours draws near, shares of APDN are holding at $1.67, representing a gain of 19.6% so far on the day.
