Highline Technical Innovations, Inc. (PINK:HLNT) bounced the support on Friday after a whole week of consecutive declines, but the trading volume remains weak and the current support level will likely be tested a couple more times.
The stock price has found support near $0.01, but the recent streak of declines and support breaks points out the weakness of buyers. Still, despite the prevailing selling pressure throughout the week, shorting was very low on Friday with only 14% of the whole trading volume recorded as short selling. Traders view the company in a more positive way because of the recently revealed slight improvements in fundamentals.[BANNER]
The stock got inflated throughout September when new orders poured from SFC Buy Direct and Anything RV and a joint venture with Dong Feng Motors was made. Highline also reported improved revenues for the third quarter and had a quite solid net profit margin. Balance sheet was not as satisfying though – millions in long term debt on convertible notes pose a serious threat of dilution to shareholders. The company has no means of paying the hefty debt amounts with their current earnings.
Market cap of over $17 million remains very high for a company that retains only around $1 million in tangible book value. Highline had barely any cash by the end of the last reported period, and a large portion of long term assets was recorded as pending payment from the sale of assets.
