Volatile SQL Stock Could Give Risk-Tolerant Investors a Wild Ride

Not long ago, SeqLL (NASDAQ:SQL) was in the headlines because it announced a two-year agreement with the Federal Bureau of Investigation (FBI). After this event, SQL stock experienced a great deal of volatility, and this may be a deal-breaker for cautious financial traders.

Hailing from Massachusetts, SeqLL describes itself as “providing life sciences instrumentation and research services.” It’s a relatively tiny company with a recent market capitalization of around $10.5 million.

To be more specific, SeqLL might be considered a genetic sequencing specialist. This could be a high-conviction field of science over the coming years, and SeqLL might deserve a place on your watch list, though it won’t appeal to everyone.

What’s Happening with SQL Stock?

The reason SQL stock won’t appeal to everyone is because it has exhibited a high degree of volatility, and this adds an element of risk. Also, small science companies are generally prone to risk since smaller businesses aren’t as well-capitalized as bigger ones.

Recently, SeqLL closed a registered direct offering of 2 million common stock shares, at a purchase price of 90 cents apiece. SeqLL shares traded near that price in mid-February, though they’ve been as high as $2.40 during the past 12 months.

On Feb. 10, SQL stock rallied 126% in a single day. There didn’t seem to be any company-specific news on that day. It just goes to show that low-priced stocks representing small companies can move very far, even without an immediate catalyst. So, please keep this in mind if you’re considering taking a share position in SeqLL.

FBI Taps SeqLL for High-Tech Forensic Science

Snagging a government contract can be a game-changing event for a small company like SeqLL. Therefore, it was a real headline-grabber when SeqLL announced its two-year Cooperative Research and Development Agreement (CRADA) with the FBI.

Along with the FBI Laboratory Division (FBI LD), SeqLL will “seek to evaluate and determine the forensic capabilities of direct RNA sequencing.” To help achieve this, SeqLL will deploy its True Single Molecule Sequencing (tSMS) platform.

Believe it or not, SQL stock shot up 256% when this news item was released. Again, volatility is to be expected with this stock. Still, the market’s positive reaction was understandable. The FBI contract will allow SeqLL to showcase the capabilities of its tSMS platform.

Eric Pokorak, Assistant Director, FBI Laboratory Division, also seems to be quite pleased with this arrangement. “We are excited to collaborate with SeqLL to evaluate the potential of this capability in forensic casework,” Pokorak stated.

What You Can Do Now

The government contract got many financial traders excited about SeqLL. However, not everyone will want to jump into this trade and ride out the ups and downs.

You can certainly take a closer look at SeqLL, learn about the company and its operations, and determine if a share position is right for you. If so, then hold on for what could be a thrilling ride with SQL stock.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.