By: Dylan Sikes - AllPennyStocks.com News

Monday, August 15, 2016

U.S. equities have kicked off the week on a solid note, with all three major indexes higher in mid-day trading. Last week, all three major indexes in the U.S. closed at record highs, the first this has happened since 1999. The record high finish though has raised concerns over valuations. The S&P 500 is trading at multiples, which are well above the historic average. When you consider that the latest earnings season has been a disappointment, the current valuations certainly don't look justified. However, investors are brushing aside concerns and continuing to pour money into risk assets such as equities.

One of the biggest gainers in trading today is MyDx Inc. (OTCQB:MYDX). Based in San Diego, California, MyDx is a science and technology company focusing on the development and commercialization of technology and devices to measure chemicals of interest in solid, liquid or gas samples. The company’s MyDx product is a portable chemical sensor with a hand-held analyzer and associated mobile application. Its MyDx device includes MyDx Analyzer and MyDx App.

MyDx shares are soaring in trading today after the company announced strong second-quarter financial results. The company also provided robust guidance.

For the second quarter, MYDX reported revenue of $279,000, up 73% on a sequential basis. In the same period last year, the company did not generate any revenue. Revenues for the quarter were driven primary by the sales of its MyDx® analyzer with the CannaDx™ sensor.

Due to improved operating efficiencies, the company’s operating expenses were reduced by approximately 53%, year over year, down from $2.1 million to $990,000. The decrease in operating expenses reflects a 75% reduction in R&D expenditures from $585,000 to $146,000; a 79% decrease in sales and marketing expenditures from $278,000 to $58,000; and, a 37% decrease in general and administrative expenses from $1.2 million to $786,000.

During the second quarter, the company signed a major distribution agreement for its CannaDx product line with Nanolux Technology Inc. It also signed an agreement with Arrow Electronics, a Fortune 150 company, to scale its supply chain and contract manufacturing capabilities for its MyDx product line.

Daniel Yazbeck, Chairman and CEO at MyDx, said that coupled with its sophisticated smart phone application, the MyDx analyzer is a unique product that for the first time places the unrivalled power of testing for chemicals where it belongs – in the hands of consumers.

At last check, MyDx shares were trading 16.07% higher at $0.162 on volume of 88,322. The stock has gained more than 20% in the last three trading sessions alone.

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