Health Enhancement Products, Inc. (OTC:HEPI) Holds Ground

Health Enhancement Products, Inc. (OTC:HEPI) is certainly seeing a good enhancement of its stock, marking a healthy rise in the past months to a good round 50 cents. To reach this level, the company made semi–regular publicity efforts, but we have not intercepted a promotion for this ticker. However, the company regularly posts developments on its experimental therapies or upcoming drugs, thus ensuring strong interest in the stock. [[tagnumber 0]] [[tagnumber 1]]With so much development going on, we were curious how the company was padded financially. HEPI‘s latest filings reveal:[[tagnumber 2]][[tagnumber 3]] [[tagnumber 4]] [[tagnumber 5]]$47,000 cash[[tagnumber 6]] [[tagnumber 5]]$3.36 million total current liabilities[[tagnumber 6]] [[tagnumber 5]]Zero revenues[[tagnumber 6]] [[tagnumber 5]]$3.2 million annual net loss[[tagnumber 6]] [[tagnumber 13]] [[tagnumber 1]]It seems the long development process has taken its toll, with accumulation of debt and losses. But still, HEPI is an active ticker over time, moving between $1 and lows around 10 cents, with almost equally divided time between rise and fall. Since the beginning of 2013, HEPI is moving like many other pharmaceutical companies, boosted by new hope, and the corrections were only temporary.[[tagnumber 3]] [[tagnumber 1]]HEPI remains serious about continuing its business, as it recently secured another $3.5 million loan just for that purpose. The company specializes in algae food supplements, but so far has not reached the markets. The only thing it manages are reportedly successful laboratory studies, which only serve as future promises.[[tagnumber 3]] [[tagnumber 1]]If you decide to take up this health supplement company, you will be sure to rely on healthy volumes, but also enough volatility to cause jitters and corrections of between 30 and 50% within weeks. However, HEPI holds some long–term potential. The company is still listed as a pink sheet by search engines, although OTC lists it as a regular BB–market stock, a higher grade.[[tagnumber 3]] [[tagnumber 1]]On the plus side, HEPI seems unswayed by the medical marijuana fad which many other food supplement companies took up when they could not succeed with their other products. Such is the case of Neutra Corp. (OTC:NTRR), which spiked up on promises it would enter the therapeutic cannabis business, but later erased the easily–made gains. Although HEPI is much more solid, it is best to avoid penny stock companies unless you have done your own due diligence and made a real informed choice.[[tagnumber 3]]