Hipcricket Inc. (OTCBB:HIPP) Falls Yet Again

When we last wrote about Hipcricket Inc. (OTCBB:HIPP) the occasion was a major stock crash. Alas, this time is no different.

This company’s been a real roller-coaster ride as far as investors are concerned. It started to steadily ascend in August 2013, but crashed mid September. After a month of seizures the ticker went up decisively again, but that was followed shortly by another crash. It’s all downhill from then on – share prices established a clear downward pattern that was broken just yesterday. By yet another crash.

During yesterday’s session, HIPP opened at the meager $0.22 but somehow managed to recover some of its standing on the market. By the end of the session the company was gathering upward momentum, but the final bell arrested its ascent at 28.57%. By the end of the day HIPP shares were rated at $0.30 – a significant step back, but certainly not as bad as it could have been.

So what shook the trader’s trust in the company so much to make them abandon it en masse? 

It is most likely that the stock dropped because of the traders’ dissatisfaction with the numbers listed in the company’s last 8-K. After months of minor announcements and setting up the scene for the presentation of the company’s financial improvements, it is not surprising that investors were not impressed by the report for the three months ended November 30, 2013:

 

• Total Assets $72.9 million
• Cash & cash equivalents $4.8 million
• Total liabilities $12 million
• Revenues $6.4 million
• Net loss $5.2 million, compared to last year’s $33.7 million

 

Reducing a company’s net loss totaling in the millions by a factor of six is a truly formidable feat of management, and though HIPP‘s still operating at loss, it’s improving. Obviously investors expected more and were disappointed, which would account for the company’s abysmal opening. It’s anyone’s guess whether the ticker will shoot upwards on the momentum it gathered yesterday, or follow the downward pattern it has established over the last few months.

Another company that fell hard yesterday is Liquidmetal Technologies Inc(OTCBB:LQMT), which crashed more than 20% in a single session.