Hypersolar Inc (OTCMKTS:HYSR) Remains Volatile
Despite that marijuana stocks have dominated the market since the start of the year for the past two weeks another company has managed to attract the attention of traders – Hypersolar Inc. (OTCMKTS:HYSR). On March 4 their stock simply exploded with the record 138 million shares resulting in the incredible gain of 429% that brought them right out of the double zero price ranges.
Since then HYSR has gone through a couple of corrections but positive momentum is keeping strong and last Tuesday the stock briefly skyrocketed to its new 52-week high of $0.13. Sitting at prices last visited more than a year and half is surely tempting investors to start taking profits and during Friday’s trading HYSR slid back down by 20% to close at $0.053.
The company is trying to develop a technology that produces renewable hydrogen using sunlight and any source of water for years now which explains the slow decline of their stock over the years with investors starting to lose their patience. The last couple of PRs from the company were able to reinvigorate traders and now optimism among them seems to be keeping strong.
In order to start splitting water into hydrogen and oxygen HYSR need to achieve an approximate voltage of 1.5 volts. Last month they announced that their technology is now capable of producing 1.2 volts bringing them closer to the target.
Although this progress cannot be denied investors shouldn’t get overly excited. For now HYSR still don’t have a completed product and there is no deadline set for when they expect to be ready. Meanwhile their financials are not exactly confidence inspiring. According to the latest quarterly report at the end of December 31 HYSR had:
- $57 thousand cash
- $62 thousand total current assets
- $1.7 million total current liabilities
- zero revenues
- $127 thousand quarterly operating loss
Since inception the accumulated deficit has grown to $4.7 million while the negative working capital stands at $1.6 million.
In order to finance its operations HYSR have entered into quite a few convertible notes and it is starting to have its toll on the number of outstanding shares. Just for the weeks between January 3 and February 4 another 50 million shares saw the light of day. The company even decided to double its authorized shares from 500 million to 1 billion so investors should expect even more dilution.
HYSR may have a promising technology but they may be years away from having a marketable product. Even if you believe in their potential be sure to take into account all the risks associated with the stock before jumping in.
Another alternative energy pennystock that made a remarkable surge at the start of the year – Solar 3D, Inc. (OTCMKTS:SLTD), has since then fallen on hard times. Their stock has been slowly wiping away its gains closing at $0.08 at the end of last week. Still the current market price is nearly four times higher than the one held back in December.
