Harbor Island Development Corp. (OTC:HIDC) Roams In from Nowhere
We have yet another ticker zooming in from nowhere, this time Harbor Island Development Corp. (OTC:HIDC), which added 45% to its stock, reaching $0.015. The company lists itself as women’s clothing store, although its stated mission is to consult new entrepreneurs about business development, innovation and marketing, and offer a distribution service of the products through a software platform. 
The most probable reason for the ticker awakening are several announcements concerning a change in business, especially the acquisition of a license for a specialized piece of software, a direct marketing program. The five-year license was sold for a stock compensation, 110 million preferred restricted shares. 
HIDC lists itself as a “shell” on the OTC markets, incorporated in 2010, with hardly any trading before a few days of activity in 2012. In 2012, HIDC increased its shares in a 200 for 1 split. The company’s market cap is $6.7 million, and the vehicle company holds the following financial strengths and weaknesses:
- $8,123 cash
- $223,248 total liabilities
- Zero revenues
- $12,348 quarterly net loss, $257,897 net loss since inception
HIDC has not buries itself in too much debt so far, but the stock may still hold dangers. Such a rapid climb plus a low, single-cent price, may be bait for paid promoters, which could take up the ticker and bring it up to disproportionate heights. Whether HIDC will manage its direct marketing efforts is irrelevant, as the movement in the stock price would happen much faster. The next few days will show if pumpers would need anything like HIDC.
Currently, there are too few companies similar to HIDC. We could compare this ticker to Warrior Girl, Inc. (PINK:WRGL), a company that promises to fund startups and help them in other ways, in order to incubate successful web projects. The company was heavily promoted, jumped to a peak of 2 cents, but crashed later, returning to a tenth of that price, $0.002.
We will be tracking HIDC for any major developments, but it is best to realize that the ticker holds dangers of a sharp correction and plan your investments accordingly. It is best to do your own research and decide the level of affordable losses before taking up the next red hot small cap ticker.
