Hybrid Coating Technologies Inc. (OTCMKTS:HCTI) Explodes Up The Charts
Hybrid Coating Technologies Inc. (OTCMKTS:HCTI) added an astounding 73.91% to its market value yesterday, after it announced its latest success.
Apparently HCTI‘s Green Polyurethane won the Presidential Green Chemistry Challenge Award, awarded by the U.S. Environmental Protection Agency and the American Chemical Society.
As evidenced by the charts, investor interest was aroused immediately and explosively, and although heads cooled off some by the time the session ended, the ticker still finished the day on an exceedingly high perch.
Still, investors would do well to tread lightly, as said perch is far from stable. Why?
Let’s be honest – HCTI rose on news-driven hype. Investors should be well aware that hype jumps don’t usually last, as hype creates volatility that pushes the ticker up, but when it dissipates, said ticker is left to sink or swim on its own.
True enough – some tickers manage to remain afloat. However, to do so, there must be something in the fundamentals of the company in question to support its elevated position – and if HCTI‘s latest financial report is any indication, it lacks such a thing:
- Total current assets – $1821
- Intangible assets – $1.8 million
- Accounts payable (current liabilities) – $957 thousand
- Total liabilities – $8.3
- NO REVENUES
- Net loss – $2.2 million
Suffice it to say that these numbers do not seem like they belong in the report of a company worthy of praise and hype. No, rather they make HCTI look like just your usual OTC Markets pinksheets penny stock company – dubious and mediocre. This is probably why the company has been on a continuous downward spiral these last few months.
As it is now, investors should be extremely careful with HCTI. Yesterday, the ticker rose on a severely over-inflated hype bubble – but that bubble is likely to burst soon, perhaps even today, leaving the ticker tumbling back to double zero land.
