Ten days after Hitor Group, Inc. (PINK:HITR) told investors that its financial reports for the past six quarters have not been properly prepared, the share price of the stock exploded yesterday. The reason seems to solely an announcement that HITR intends to concur new markets. 
The session yesterday closed at $0.38 for a share as over 1.5 million shares changed hands during the day. HITR got a new 52-week high at $0.39, although it fell also below $0.30 shortly after market open. Such volatility is not so uncommon for HITR recently and it came together with the increased trading activity on the news that came out.
On October 21, Hitor Group filed an 8-K with the SEC according to which the company’s quarter and annual reports for the periods between April 2010 and September 2011 have not been prepared correctly to account for the reversed stock split that was declared effective on April 12, 2010. Although the company says that the revenue and expenses would not be changed, it is still required to file the corresponding amendments.
Market reaction was short-term, probably because traders generally do not consider the company’s financials anyway when trading with the stock. The latest 10-Q shows $0 revenue for the first six months of the year, and states that HITR is still in the process of establishing its business, thus no revenue was to be expected either. The company has also a working capital deficit and negative stockholders’ equity of almost $671,000.
Traders, however, still hope to profit from HITR shares considering yesterday’s reaction to the next in row promising press release. Yesterday, Hitor Group said that it had signed agreements to add some new products like lubricating fluids to the line dedicated to reducing global dependency on traditional fuels. No more details have been given, thus the strong reaction of the share price would probably not last for long.
