Healthnostics (OTCMKTS:HNSS) With a Strange Volume Spike
A few months ago, Healthnostics (OTCMKTS:HNSS)’s shares structure was absolutely appalling. The number of issued an outstanding shares stood at more than 13 billion while the A/S count was pegged at 30 billion.
Some people weren’t that shocked by this. These people knew that the company is headed by Mr. Michael J. Black and they knew that he is also at the helm of InternetArray Inc (OTCMKTS:INAR) and Safer Shot, Inc. (OTCMKTS:SAFSD). Neither INAR, nor SAFSD can attract investors with a decent-looking share structure.
Nevertheless, in May, Mr. Black decided to tidy things up a little bit at HNSS‘ camp and he effected a 1 for 200 reverse split. Unfortunately, even that wasn’t enough to draw any sort of significant attention to the ticker. Trading remained pretty slow and the stock refused to go anywhere.
Until yesterday, that is. More than 67 million shares changed hands in a matter of six and a half hours which pushed the dollar volume up to around $109 thousand. Sadly, instead of boosting the stock higher, the volume spike actually dragged it under. After a 37% drop, HNSS closed Monday’s session with a price of a little over $0.002 per share.
The crash was pretty terrible, but the silver lining lies with the fact that thanks to the sudden volume spike, there are people paying attention to the stock at the moment. But will they invest in it?
If they find a good enough reason to do so, they will probably consider it. Unfortunately, the “finding a good reason” part seems a bit tricky.
For one, the increased volume from yesterday wasn’t caused by a press release, a new filing or even a promotion that could explain it which means that the spike might turn out to be a one-day wonder which could be followed by months of liquidity problems.
The financials aren’t exactly confidence-inspiring, either. The Q2 report, for example, looks like this:
- cash: $1,000
- current assets: $294,594
- current liabilities: $216,668
- quarterly revenues: $20,334
- quarterly net income: $5,019
In typical pink sheet fashion, HNSS‘ financial statements and the accompanying disclosure documents aren’t extremely informative, but they do tell us that most of the debt that the company had outstanding at the end of June carry a conversion provision in the event of default.
No more details are disclosed which, on its own, could be a bit of a problem for potential investors. Couple this with the rest of the issues, and you end up with an extremely volatile mix which should be approached with caution.
