price and traded over 2 million shares on the market.
The most reasonable explanation on the high move must be the latest news about the company. On Dec 16, Hythiam reported it has entered into a Material Definitive Agreement with Irving Company LLC, according to which HYTM extended the term of the lease on its office space through December 31, 2013. The announcement stated that signing of the lease extension “is expected to reduce occupancy costs by over $1,000,000 during the three year lease term”.
Apart from this news, Hythiam announced it has approved the adoption of the 2010 Stock Incentive Plan, which allows the company to make grants of stock options, restricted and unrestricted stock and other stock-based awards to its employees, executive officers, consultants and directors.
Having published the news, HYTM got the up move immediately and aimed the top of the chart.[BANNER]
Hythiam, Inc., through its Catasys subsidiary, provides specialized behavioral health management services to health plans, employers and unions through a network of licensed and company managed health care providers. Historically, the company used to trade much higher, however, the stock price fell down.
The most impressive thing here is that throughout the whole December directors of Hythiam have been buying HYTM shares intensively with no definite explanation. Most probably, the stock climb has been additionally provoked or resulted from their purchases.
According to its quarterly results, as of end-September HYTM had more liabilities than total assets on its balance sheet and the accumulated deficit has increased. Since inception, the company has incurred significant net losses and negative operating cash flows and the management expects the losses to continue during the next twelve months. The team claims that the ability to fund the company’s operations is dependent on generating revenues from new contracts. However, none of these can be guaranteed.
