Hypersolar, Inc. (OTCMKTS:HYSR) Driven by Momentum from Publicity Efforts

Hypersolar, Inc. (OTCMKTS:HYSR) had little hype to show in the last two years, with a generally depressed stock price below the penny levels, and some temporary spikes. But the sudden movement of the ticker with two consecutive days of record and near-record buying volumes are pulling our attention to the stock. HYSR gained more than 45% to $0.0394, and dollar volumes reached more than $3.48 million. Nearly 200 million shares were absorbed in the last two days. HYSR0603.png

HYSR has not been promoted since the fall of 2012, and its own PR feed is rather sporadic. Investors’ forums are relatively inactive, and there is little to justify the sudden activity, except for a recent publicity piece hyping the potential of hydrogen fuel cells. HYSR mentioned several large companies, including WalMart and FedEx that were increasing their use of fuel cells- but no mention whether the company could compete in that market.SLTD0603.png

At least HYSR is a regular filer, but otherwise there is little positive we can say about a financial report that contains:

  • cash: $57 thousand
  • current assets: $62 thousand
  • current liabilities: $1.8 million
  • quarterly operating loss: $127 thousand

It is surprising that the stock price kept up even for a couple of days. But there is still a very high chance of a reversal, as other similar stories unrolled with inevitable corrections after the first initial burst.

And HYSR is indeed little more than hot air. For years, it has touted its intention to create a doubly-ecological fuel cell that generates hydrogen from plain water, and to do this uses solar energy. Unfortunately, the technology has not materialized yet.

Still, HYSR belongs to a class of companies that enjoy the interest of investors with positive messages of green technology just around the corner. It was a similar sentiment that drove Solar3D, Inc. (OTCMKTS:SLTD) from three cents to nearly $0.14. Now, SLTD is a bit depressed around $0.08, but is still keeping a part of the gains.

The eco-technology trend also spread out to producers of lithium, as their contribution may be wanted for the production of batteries, especially those for electric vehicles. This caused quite dramatic parabolic rises for the likes of Lithium Corp. (OTCMKTS:LTUM) and Amerilithium, Corp. (OTCMKTS:AMEL), which increased their stock price several times in two trading days. But now, both tickers are seriously correcting.

Granted, the rise of HYSR is not that dramatic, though the active buying may soon find an outlet in selling. If you still like the ticker for its longer-term potential, keep in mind that its low and stagnant stock price has already made investors wait for quite a long while. Avoid over-investing into the latest exuberant spike, to avoid painful losses with the inevitable correction.

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