RMD Technologies, Inc. (PINK:RMDT) can be called one of the hottest penny stocks out there. The stock started this week with 110% gain on the share price and humongous trading volume after a research report on RMDT by Market Advisors, Inc. set a target price of 10 cents per share.According to the report, the fundamental analysis shows that the rapid expansion in the electronic waste recycling business will continue. A lot of positive facts in the report should still be taken with a grain of salt, as the report was paid for in the first place. The fact about the compensation shows that RMDT does not really attract interest from independent analysts.[BANNER]
The price target set forth by the analysts is a short-term one and was nearly hit on the first day of trading. The report concentrated mostly on the possibilities of growth of the whole industry, but didn’t specify how RMDT is going to grow alongside. The company hasn’t filed their 10-K since 2008. They plan to launch production of Electric Vehicles in Q4 2010.
Share price is spiking up purely on temporary interest in quick profits, not the industry directed fundamental reasoning that was provided by the report makers. If RMDT will proceed with their plans and actually start generating sales, only then the stock could be considered as something more than a gamble.
