Will Hybrid Coating Technologies Inc. (OTCMKTS:HCTI)’s Recovery Last

Hybrid Coating Technologies Inc. (OTCMKTS:HCTI) managed to spike 28.79% again yesterday, after its horrible crash the day before.

The news that HCTI‘s own Green Polyurethane won the Presidential Green Chemistry Challenge Award did miracles for the stock two days ago. However, it was clear from the very start, the ticker’s ascent was entirely hype-driven – and hype jumps don’t last.

Case in point – HCTI promptly crashed, and crashed horribly. And how could it not crash? If the company’s latest financial report is any indication, the HCTI literally has nothing but hype going for it:

  • Total current assets – $1821
  • Intangible assets – $1.8 million
  • Accounts payable – $957 thousand
  • Total liabilities – $8.3
  • Net loss – $2.2 million

This is why investors should be doubly wary of HCTI. The volatility that the ticker still displays means that there is still money to be made from trading the ticker by opportunistic investors.

However, the risks involved in trading should not be underestimated, by any means. As the charts can attest, that same volatility that keeps pushing the ticker up explosively can send it spiraling down on a whim at a moment’s notice. As the hype surrounding the ticker once more dissipates, there’s a high probability that this will happen again, and soon.

Investors should consider that risk before committing to HCTI stock.

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