Neohydro Technologies, Corp. (OTCMKTS:NHYT) Marks Records on Money Runners Email

Neohydro Technologies, Corp. (OTCMKTS:NHYT) marked a record Friday, leaving the new week opening as a great unknown. The company, traded only sporadically about a month ago, went wild with a promotional campaign. The culmination was a mail by Money Runners, which shot the ticker up by nearly 30% to 5 cents on dollar volumes in excess of $500,000, an all-time high.

NHYT is using a classic bait, the fuel economy enhancing system that reportedly uses hydrogen to make engines run cleaner, and on less gas. Recently, the company also started claiming it would clean up water used in the fracking process. The entity is still listed as a development stage business, so let’s see if the finances show any serious intentions to produce the above mentioned technologies. NHYT shows:

• $14,023 cash

• $88,095 total current liabilities

• Zero revenues

• $22,148 net loss

While NHYT announced it would attract $100,000 in a private placement, this does nothing for the fact that the company lost $1.3 million in about five years, and that its product is nowhere near market. And hydrogen fuel economy systems have always been around, if not in the mainstream, then at least as a fringe product with dubious benefits. There is also no website showing the actual product.

The $100,000 placement has also a downside: the company has agreed to sell the shares at 30 cents, and the period for purchase is 90 days, possibly extended to 120 days. This deal, combined with the promotion, means that an insider would have the motivation and opportunity to sell the newly issued shares at the higher market prices. Not to mention that the buyer, Craigstone, Ltd., also bought a warrant to buy a further $100,000 worth of shares in the next two years, again at 3 cents.

NHYT was mentioned by several promoters, for a small compensation of $5,000. The June campaign seriously lifted the volumes that led up to the record last Friday. The main financing party for NHYT was 007 Stock Chat, a promoter with a long history of past selections that exposed investors to various risks.

A previous selection, GDT Tech, Inc. (OTCMKTS:GDTK) lost more than 80% of its value since the last email on May 21st. Medifirst Solutions, Inc. (OTCMKTS:MFST) moved from inactivity to a promotional height of 39 cents before slumping to below 6 cents.

While NHYT could hold upward potential, it is best to stay away from this ticker unless you can afford a correction similar or greater than the above examples. Combining a fringe, unproven product and insider holdings of underpriced shares makes this selection extremely risky, so it is best to be prepared with your own research and not rely too much on promises and paid hype.