Great Basin Scientific Inc (NASDAQ:GBSN) has been crushed. There is no other way to put it. The stock traded near $4.00 on May 16th, 2016. Since then it has fallen as low as $0.28 yesterday. The near term low is likely in and I expect a bounce back above $0.50.

Let's go over the reasons why it likely fell. Recently, the company announced a $75 million in funding. When a micro cap gets funding like this they usually have to give a ton of stock to the firm funding them. The firm then sells it on the open market to recoup some of the money they are lending to offset the risk. This is likely what happened. The key is, it appears that between yesterday and today that seller has finished. If that seller is truly done, the stock likely will see more net buyers than sellers and rebound back to the $0.50+ range. In addition, the company appears set to continue the solid growth they have seen in 2016.

I sold it in my Verified Investing portfolio today for over a 24% profit. Then on the dip I added again and will look to see a move above $0.50 this time. This is a high risk micro cap so small positions are key.

Jenny Rebekka