Another newcomer to the OTC BB trading, HyperSolar Inc (OTC:HYSR) is making a ruckus today as the company was recommended by Penny Stocks Finder. The stock price went 90% higher today even though the company doesn’t look like it could hold this high valuation for long.The stock has showed off some gains during the first few minutes of trading, however it’s not recommended to hold such stocks for more than a day or a few until the momentum is lost. The last notable IPO to perform like this was Smart Holdings Inc (PINK:SMHS). Their stock price tumbled down after just one day of fun.[BANNER]
Fundamentally, HyperSolar has potential only because they are in the novel field of solar panels creation. Seeking to develop a solar concentration technology, the company still has no prototype and they are running low in cash, considering the expenses totaled twice their bank account size over the last quarter.
As a development stage company, they are using stock sales to raise working capital. While this can keep HyperSolar going, traders won’t enjoy a price increase until the firm will present a positive and promising update on their progress.
There is no revenue, thus without news, the stock will likely just be stuck at the price best representing their balance sheet. Currently, the firm is worth $399 thousand in net tangible assets and the market cap went up to $24 million after today’s monster rally.
