I’ve been watching this stock for the past 2 months now, and I guess this is the perfect time to write about them.

Carrington Labs Inc. (Symbol: CARN) is a bio-tech company which is currently engaged in the development, manufacturing, and marketing of naturally derived complex carbohydrates and other natural product therapeutics for the treatment f major illnesses, the dressing and management of wounds and nutritional supplements.

They consist of three business divisions:

• Medical Services Division - The division that sells prescription and non-prescription medical products. They also provide manufacturing services to the medical markets
• Consumer Services Division - Sells consumer and bulk raw material products and offers product development and manufacturing services to the cosmetic and nutraceutical markets
• DelSite Biotechnologies Inc. - a wholly owned subsidiary that operates independently from the Company’s research and development program, and is responsible for the research, development and marketing of the Company’s GelSite technology

Even though they reported revenue of $28 million for the year 2005, they actually experienced net loss of $5.3 million and that was resulted from increased research and development expenses. Their revenue actually declined by $2 million compared to 2004 revenue.

However, their stock price has actually gone up by $1 since I started monitoring them - which was sometime in February. Had I bought 1,000 shares of them back in February (at $4.66/share), I would’ve made profit of $950 by now (it’s currently traded at $5.61/share). That’s actually not bad at all - considering it’s free money.

Here’s their price history for the period of January - April:

As you can see, the price started climbing at then end of February and it was fluctuating a lot once it’s passed $5/share. However, it was still able to make its way up to $7/share and now currently hovers over $6. I still believe it’s going to go back up to $8/share (maybe once their revenue for Q1 2006 increases). We’ll see what’s going to happen in the next few months..

Quote of the Day:
The trend is your friend. - Technical analysis motto