HyperSolar, Inc. (OTCMKTS:HYSR)’s Upward Rush
HyperSolar, Inc. (OTCMKTS:HYSR) had an impressive start of the month, fueled by an optimistic press release, however, the hype dwindled away and the stock lost nearly 50% of the value it had gained.
Despite the tough weeks of sliding down the charts, we saw some optimism yesterday, as the company announced that it has filed a patent application for a “method of manufacture of multi-junction artificial photosynthetic cells.” with the University of California, Santa Barbara.
Also, the PR didn’t forget the partnership between Walmart Stores, Inc. (NYSE:WMT) and Plug Power, Inc. (NASDAQ:PLUG) and the increased attention that BMW and Hyundai are comitting to hydrogen fuel technology.
HYSR also bragged that they are close to reaching the 1.5 volts that are required to split water molecules into oxygen and hydrogen, but the question we raised in our previous article remains – will they manage to have a revenue-producing business before they accumulate too much liabilities and their stock price sinks.
- cash: $57 thousand
- current assets: $62 thousand
- current liabilities: $1.7 million
- revenues: $0
- quarterly net loss: $127 thousand
These are the figures from their report for Q4 of 2013 and what bothers us the most is the fact that they have stated the decrease of payments for research and development as a reason for the smaller net loss, which leads us to wonder if this would have an outcome on the rate at which they progress towards a finished product.
Nonetheless, yesterday’s optimistic news, that were posted in the middle of the night before the session, provided for a 78% gain in price and HYSR closed at $0.065 on its highest volume in 2 weeks, generating $3.9 million in trade value.
In any case, avoid taking a pick without doing your due diligence and weighing out the risks first, especially when dealing with companies whose revenue-generating capabilities are currently none and it is unknown when there would be any, or if that time will even come.
Primco Management, Inc. (OTCBB:PMCM) also registered a session in the green yesterday, as they closed the day with a 56% gain in share price. Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) shareholders weren’t as fortunate, with the company stock losing a quarter of its value after a good upward run.