Pro-Dex (NASDAQ:PDEX) is a medical device company specializing in rotary drives and motors for physician and dental practitioners. This tiny health care penny stock has a valuation of only $6 million, and as a result, shares are volatile. In May, shares soared to more than $3, thanks in part to an impressive earnings report.
The company generated a profit in excess of $1 million on sales of $7.6 million. The sales number represented an improvement of 24% from the year prior. As quickly as the market bid up shares, the rug was pulled out as sellers emerged. Shares now trade below $2. Investors might have been spooked by the company’s admission that future buying might not be similar to the impressive quarter announced.
That said, Pro-Dex is working hard to diversify its customer base. To the extent they are successful, this stock will rally back to more than $3 per share – and then some.