Rock Creek Pharmaceuticals Inc. (OTCMKTS:RCPI)’s Crash Has Begun
Rock Creek Pharmaceuticals Inc. (OTCMKTS:RCPI) lost 24.58% of its market value on Friday, dropping like a rock and halting a full dime below the dollar threshold.
As we warned in out previous articles discussing RCPI, this was bound to happen sooner or later. As much as some people would like to believe that an ex-NYSE company is impressive just because it was listed on a prestigious exchange in the past, unfortunately that is not necessarily always the case.
RCPI‘s rampant climb a few days ago could only be explained with just such enthusiasm. Simply put, investors thought that even though it didn’t make a good NYSE company, RCPI might be a good OTC Markets company.
Well, unfortunately, RCPI‘s achievements are underwhelming even by the exceedingly low standards of the OTC Markets. Its latest financial report showed investors a rather grim picture:
- cash – $146 thousand
- current assets – $996 thousand
- current liabilities – $11.18 million
- revenues – ZERO
- net loss – $2.84 million
With only these numbers going for it, it is really no wonder that the ticker crashed as bad as it did. But will it bounce?
Well, there is always that possibility. However, even RCPI it did manage to recover for any amount of time, in the end there would still be nothing but hype holding the ticker up.
Investors wanting to make money out of trading RCPI stock should be on the lookout for any and all signs that a wave of hype is incoming, as well as news that might spark a wave of selling or buying. They also need to factor in the fact that dollar volumes seem to be diminishing over time, and that this could prove problematic if nothing changes any time soon.