$2.5 million – this is the annual remuneration package of Mr. Clark A. Marcus – Chairman of the Board and Chief Executive Officer of Comprehensive Care Corporation (OTC:CHCR). At least for the 2009 financial year, in which his company achieved nothing else but:
- a working capital deficit of $13.8 million;
- a nine-month operating loss exceeding $14 million as of Sept. 30, 2009.
Has this fairly stimulating financial package brought about a better 2010 performance? Not at all. On the contrary, the same indicators reveal even more negative figures.
Nevertheless, yesterday’s market session proved highly successful for CHCR stock both in terms of price and volume. The former shot up by 32%, while the latter closed at 103 thousand – a 630% increase over the previous session and five times higher than the average figure. All that Marcus needed to do in order to inspire investors was to issue a forward-looking statement regarding Q4 of 2010. The rest was left to promoters, who invested $9500 in a massive advertising campaign. [BANNER]
As it seems, Comprehensive Care Corporation, which has existed for more than 40 years now, is supposed to develop special assistance programs aimed at helping people with behavioural health and substance abuse problems. That is why, when the company yesterday announced that it expected twice as much revenue for Q4 as it had generated during Q3, it was met with huge enthusiasm among traders. After all, it was high time CHCR achieved something that at least sounds commercially viable. However, let’s not forget that Marcus’ estimate has not been audited yet and may eventually end up nowhere near the $18 million Marcus longs for.
Though a completely audited report will be out as early as next month, investors seem to have embraced the news and regained their hopes of a real breakthrough. This circumstance might finally bring the company in the black. Moreover, if CHCR has indeed entered into a number of contracts that it has now started to duly execute, as boasted by the management team, the light at the end of the tunnel will only grow stronger.
In order not to lose touch with reality, however, one must keep in mind that CHCR managers have been toying with the idea of issuing millions of warrants every now and then. A few million of them have already come to surface.
