Neah Power Systems, Inc. (OTCBB:NPWZ) Keeps Rising

After a long period of descending the charts, Neah Power Systems, Inc. (OTCBB:NPWZ) began climbing and did it with a fast pace. The gains were huge and we also saw bigger investor interest, expressed in the increasing amounts of traded shares.

This was most probably due to an article on Wall Street Cheat Sheet (WSCS), touting the company stock. The latter was published on January 23 and we saw a massive 80% jump the very same day, while the stock traded in more than four times its average volume.

The end of the week was another success for NPWZ as they jumped another 29.41% in value and closed at $0.0022 on even bigger volumes. The total amount of shares that were traded in the last session before the weekend came at 21.4 million and generated $481 thousand in dollar volume.

We don’t see any compensation listed for the so called article, but we are quite sure that there was some sort of a bargain. This is due to the fact that the guys at WSCS don’t express an unbiased opinion when comparing NPWZ to other companies.

One of these companies is FuelCell Energy, Inc. (NASDAQ:FCEL) and the reason for which we have such an opinion is because they only list their losses for the past three years while saying to word for the revenue that it has been produced, or any of the other numbers in their filings, so that we can have a better understanding for both the companies.

Even though FCEL‘s net loss for the year ended October 30, 2013 is $37 million, the guys at WSCS fail to mention that it is 26% of the produced revenues that were $145 million, while NPWZ‘s losses (even though they are much smaller) are 1500% of the revenues produced for the yearly period ended September 30, 2013.

Furthermore, one simply can not compare the tiny $18.3 thousand that NPWZ has got on hand to the $77.6 million that FCEL has in the bank. Nonetheless, this “article” led to a massive jump, but how far can NPWZ go. We think that NPWZ is ready for a correction and it will come rather sooner than later.

In any case, be sure to do a lot of due diligence and weigh out the risks before jumping in on the hype, because you might get burned easily.

Mentor Capital, Inc. (OTCMKTS:MNTR) also had a good gain in Friday, jumping 36%, even though their press release was put to question on investor forums.