Manhattan Scientifics Inc. (OTCMKTS:MHTX) Soaring On PR
Manhattan Scientifics Inc. (OTCMKTS:MHTX) had been on a wobbly ascent ever since it announced that it was moving ahead of schedule in its research. The ticker’s hesitant movement pattern was finally broken decisively a couple of sessions ago, when the company jumped on positive coverage from a popular online stock analyst.
MHTX is just one of the many OTC Markets small cap medical companies that have been stuck in the development stage for what seems forever, researching and developing a specific branch of medical science in the hopes of one day bringing a product to the market. Companies in similar circumstances that have become popular recently include Advanced Cell Technology, Inc. (OTCMKTS:ACTC) and Brainstorm Cell Therapeutics Inc. (OTCBB:BCLI). Although all three are focusing on completely different aspects of medical science, the similarities they share are notable.
Like the other two, MHTX has passable financials for the first quarter of 2014 – at least by the standards of the OTC Markets:
- Cash and cash equivalents – $1.6 million
- Total current assets – $1.9 million
- Revenue – $180 thousand
- Total current liabilities – $2.1 million
- Net Loss – $1.1million
MHTX is collecting royalty payments from CRS, which account for its revenues. It does seem to be progressing in its research, but at the rate things are going, it looks like it may take quite some time for the company to bring a product to the market.
Granted, MHTX recently announced that it had completed the testing phase of its MRX II cancer screening instrument and has delivered it to The University of Texas M.D. Anderson Cancer Center in Houston, TX. Still, as things are now, commercial success does not really seem as close as MHTX enthusiasts would like to believe.
For now, MHTX is rising on PR and popularity generated by public exposure. Whether or not the company can keep this up, or even retain the gains it has registered, remains to be seen. In any case, investors would be wise to acquaint themselves with the all the risks of committing to medical penny stocks before jumping at MHTX‘s stock.
