Applied Digital Puzzled By Drop in Share Price

By Pat Beall, The Palm Beach Post, Fla.

May 22–Did the shorts run away with the stock?

Not even the company knows for sure.

The share price of Delray health device maker Applied Digital (Nasdaq: ADSX) has dropped a cool 17 percent since the first of May, the result of a fierce sell-off.

In a statement, CEO Scott R. Silverman said the plunge “is particularly frustrating,” because while “shareholders sell for a variety of reasons… we know of no connection between the recent sales and the performance or prospects of the company.”

Shortsellers are hovering, though.

About six of every 100 outstanding shares are believed held by investors betting the share price will go down. As of Friday, brakes on trading were nowhere in sight.

Share price hit a new 52-week intraday low of $2.11 — and on twice the normal daily volume of sales. It closed at $2.34.

—–

To see more of The Palm Beach Post — including its homes, jobs, cars and other classified listings — or to subscribe to the newspaper, go to http://www.palmbeachpost.com.

Copyright (c) 2006, The Palm Beach Post, Fla.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

ADSX,