Downgrade Alert - HIV

Turning South Here in Penny Stock Pick we rate penny stock by news, market potential, insider, financial statement and technical chart. The average rating of the stock is then used to determine how we would recommend the stock from Strong Buy to Strong Sell. After noticing the weak trend in the stock, we are reducing the rating for Calypte Biomedical Corp. (HIV), the Lake Oswego, Oregon based company developing diagnostic tests for HIV diseases. The recent news also made the stock less attractive as the company annouced wider loss and far less revenue. Belows are the updated analysis and rating on the stock:

Technical
The technical chart shows very negative sign as 50 day moving average has just dropped below 200 day moving average to form Death Cross, a selling sign. In addition KD and MACD both show weak sign as MACD and signal line are below 0 and K line is below D line.

Insider
Although CEO has been bullish about the stock buy buying total of 1,311,736 shares this year, the intitutional players continue to be bearish on the stock and have sold 177,965 or 85% of the shares in the latest quarter.

Financial
The income statement shows negative sign as the revenue has reduced to $427 thousands in 2005 compared to $3.3 million in 2004. The latest quarter seemed even worse as the company only earned 91 thousands the first quarter of 2006, an 86% loss compared to 665 thousdans in the first quarter of last year. From the cash flow statement there is also no positive sign as the company is still selling the stock and borrowing money to maintain cash level.

Penny Stock Score (1~5) 5 is highest
1. Market Potential(AIDS): 4
2. Technical: 1
3. Insider: 3
4. Financial: 2
Recommendation(2.5): Sell