Rock Creek Pharmaceutical Inc. (OTCMKTS:RCPI)’s Horrible Crash Continues
Rock Creek Pharmaceutical Inc. (OTCMKTS:RCPI) tumbled 25% down the charts yesterday, and by the look of its early trading, today is not likely to treat the ticker any kinder.
Many investors have remarked that this is the absolute lowest which we have seen RCPI over the years, and that this is an excellent entry point. The first of those statements is absolutely correct – with a market cap of less than 200 thousand, RCPI seems to not only have found rock bottom and started drilling a hole in it.
While the second statement is also true, it begs the question – why would you commit to RCPI now of all times?
We’re looking at a development stage company that’s far from rolling out a product on the market, who has $20 million worth of debt to its name in the for of convertible notes, and a balance sheet that looks like this:
- cash – $552 thousand
- current assets – $1.1 million
- current liabilities – $21.83 million
- current portion of long term debt – $12.3 million
- revenues – ZERO
- net loss – $2.69 million
With shortcomings such as these, it’s no wonder that RCPI‘s market cap is nearly non-existent. Things being as they are, it wouldn’t really be surprising to see the ticker drop into double zero land today, or in the couple of sessions to come.
Naturally, there’s also the possibility that RCPI somehow manages to evade illiquid obscurity – but its path to recovery is barred by so many red flags that at this seems highly improbable.
