Natural Health Trends, Corp. (OTCMKTS:NHTC): A Rare Opportunity in the Spotlight
Natural Health Trends, Corp. (OTCMKTS:NHTC) is a curious case, an OTC company that has risen relentlessly in the past three years. In the past month, the growth accelerated further, and on Tuesday, NHTC added more than 37% to stand at $3.85, on buying volumes above $372,000. Despite the relatively low sum, the buying levels are the highest in more than a year. In general, NHTC looks like a barely discovered ticker which may start to attract attention.
NHTC is one of those pharmaceutical cash-cows that deal in direct selling of personal care and wellness products. In that way, NHTC has not been as visible as louder pharmaceutical tickers promising revolutionary drugs and therapies. NHTC is also rare in that it has not changed its name or description since the incorporation in 1998. And we have not met it before among pumped tickers, but also investors’ forums are quite inactive. All of this may mean that NHTC may be pulled down by lower volumes.
NHTC is not moving in relation to other pharmaceuticals which aligned themselves with marijuana companies to achieve the boom. There were quite large purchases of shares by insiders since the fall of last year, and this was combined with rumors of uplisting. All of those factors combined could attract a more general audience of investors, lifting the ticker up further.
The latest financial data truly differentiate NHTC from other OTC companies:
- $4.2 million cash
- $6.3 million total current liabilities
- $37.5 million total revenues
- $2.6 million net income from continuing operations
To compare, giant pharma bubbles such as Titan Pharmaceuticals, Inc. (OTCBB:TTNP) have to deal with a much worse balance sheet situation while waiting for profits to materialize from newly released therapies. TTNP was promising a few months back, reaching as high as $1.20, only to deflate to current levels around 63 cents.
The only downside for NHTC would be the disproportionate interest, which could invite shorter-term investors and cause swings in price that may be painful. Also, NHTC could be taken up by pumpers in order to boost the record by engaging promising companies.
If you really like this company, keep in mind that at no level is a company immune to expensive corrections. Plan your time frame accordingly, as even NHTC has had periods of stagnant growth and some setbacks.