Catasys Inc. (OTCMKTS:CATS) Crashes After Pumps
Catasys Inc. (OTCMKTS:CATS) lost 11.11% of its market value yesterday, just one day after a massive barrage of pumps targeting the company hit the web.
As can be seen on the charts, CATS hadn’t seen much trading activity for months before thee touts by PennyStockPicks, StocksImpossible and OtcbbJournal hit the web two days ago.
Interestingly enough, the paid pumps were hardly effective, in spite of being as numerous as they were. In fact, it could well be said that the e-mails proved counter-productive – CATS headed down immediately after the first promotions hit inboxes and hasn’t shown much sign of recovery ever since.
A bit of due diligence reveals why the ticker’s position hasn’t stabilized yet. Put simply – CATS doesn’t have much to its name that it could use to reassure investors. The company’s 10-K for the period ended Dec. 31, 2014 looks like this:
- Cash – $708 thousand
- Total current assets – 1.5 million
- Total current liabilities – 2.9 million
- Annual revenues – $2 million
- Annual Net loss – $27 MILLION
True enough, $19.9 million out of that $27 million that the company documented as net loss was attributed to “Fair value adjustment on warrant liability”, but the net loss is still horrendous – especially for a company that is out of the development stage and is now making revenues.
True enough, the announcement that CATS has begun enrolling members with anxiety disorder in its Kansas “OnTrak Program” is certainly good news. However, it represents a vague possibility that the company’s financial standing may change in the distant future.
On the other hand, CATS‘s market cap in the current moment, looks too high for its achievements to date. Which is why it wouldn’t be surprising to see the ticker plunge even further down the charts, now that it has the investors’ attention, thanks to the paid pumps.
