What would you do if a company whose stock you own announced it had got a grip on a revolutionary technology? If you expect a rapid surge in value, you should think twice, especially if you are a stockholder in EMTA Holdings, Inc. (OTC:GNPG).
Yesterday, GNPG stock was supposed to go through the roof after the company came up with a very special announcement. As it seems, GNPG has now laid its hands on a novel technology. The latter has been described as an ‘in-vehicle hydrogen generator’ aimed at improving fuel economy significantly. By the end of yesterday’s session, however, investors found out that they might have given an overly enthusiastic response to the news.
Losing 13% in value, GNPG stock closed the session at $0.04 per share on a volume of more than 3.1 million. The latter turned out to be a seven-week high for the company, as well as five times higher than the daily average trading volume.
Occupying the OTCQB marketplace, GNPG pretends to be an energy conservation company focused on developing, manufacturing and distributing energy-efficient, petroleum-based solutions. The company has already launched a couple of fuel additives on the market.
GNPG is a diligent SEC filer, sticking to a fairly transparent financial policy towards its stockholders. The most recent 10-Q report came up in February. Covering the quarter ended Dec. 31, 2010, it outlined:
- $100K in cash;
- working capital deficit of a staggering $15 million;
- net income in excess of $167 thousand vs. a net loss of $2.7 million for Q4 of 2009.
Despite the huge gap between GNPG’s current assets and liabilities, the company has shown a vast improvement regarding its income statement. In case the new technology meets with success on the market, GNPG’s stockholders will definitely be in for a great ride on the charts.
