Hydrogen Future Corp. (OTCMKTS:HFCO) Cut Down by Massive Selling
All the buying from Tuesday turned to selling as holders dropped Hydrogen Future Corp. (OTCMKTS:HFCO) like a hot potato. After the initial fast climb, HFCO stepped down by 42% to $0.023, on selling volumes above $791,000. This is not unusual, given the minor OTC bubble forming around fuel cell companies. 
Investors’ forums show an appreciation of the upward momentum, but there is doubt in the quality of the company, which switched identities not so long ago. The discussions are extremely lively, and there are several optimistic opinions as well. It seems that HFCO is lumped together with other fuel cell companies, and the expectations for upward momentum are spread to the whole sector.
Of course, the usual worrying aspect of a penny stock are the vast deficits in the financial filings:
- Zero cash
- $206,000 total assets
- $1.46 million total current liabilities
- No revenues
- $4.37 million net loss since inception
This would not be a problem if HFCO was a bit more active with promotions, but as it is easily seen, the limited publicity and financial filings only serve so far. Now, HFCO has to meet the coming weekend with prices that are still away from the post-split peaks, but unusually high compared to the dropping trend in the last months of 2013.
HFCO is compared to another newcomer in the battery boom, Hypersolar, Inc. (OTCMKTS:HYSR). So far, this ticker hangs onto $0.06, an unusually high position after bursting upward from the double-zero levels. HYSR is a veteran of self-promotion, with constant reiterations of its forthcoming fuel cell technology- which is still at the testing and research level, while mainstream companies already hold most of the hydrogen fuel cell market.
Otherwise, hydrogen power companies are more often on the NASDAQ list, just like Plug Power, Inc. (NASDAQ:PLUG), which has had a smoother run upward from below the dollar to more than $11. Now, PLUG is also retreating, wiping out a lot of value in a day, to $6.
Already mainstream media noticed that the fuel cell stocks have picked up strongly in 2013, and the trend coming onto the OTC markets may already be old. Also, the offers we are seeing are of extremely underpriced tichers, which easily stage a short-term run, but we are yet to see if those companies present anything close to the stable upward trend of PLUG.
Other selections such as Quantum Materials, Corp. (OTCMKTS:QTMM) are trading with much more volatility, though this particular ticker is hanging on at the $0.06 position, with little change in the past couple of days.
So if you are interested in HFCO or similar opportunities, keep in mind that separate industries have their heyday on the OTC markets, and we have seen many groups of stocks go upward on a fashionable sector, such as ecological energy or a rare mining asset. Usually, after the hype ends, the stocks end up depressed.
