Todor Pichurov

HyperSolar, Inc. (OTCMKTS:HYSR) Climbs for No Apparent Reason

by Todor Pichurov January 19, 2015

On Friday the share price of HyperSolar, Inc. (OTCMKTS:HYSR, HYSR message board) took another unexpected hike. HYSR shifted just over 20 million shares and stopped a whopping 42% up by the closing bell. The move caught more than a few people by surprise as there were no obvious triggers for such a big swing.

The stock has been moving up for a few sessions prior to the spike. Technical analysis lovers may start running their calculations but frankly, the technicals of OTC penny stocks that never made a dime of revenue are hardly ever relevant.

HyperSolar is a technology company run virtually single-handedly by CEO, CFO, President and Chairman – Mr. Timothy Young. HYSR works on developing hydrogen fuel systems, using a process that separates the hydrogen found in water. It is probably more accurate to say that Mr. Young works on this, as the company had one employee as of November 2014. The company's financials are not exactly inspiring either. Here is what HYSR last reported in its quarterly:

  • $43 thousand in cash
  • $6.6 million in current liabilities
  • ZERO revenues since inception in 2009
  • $117 thousand in loss from operations

In 2014 HYSR entered into two new convertible notes agreements. Investors may be intrigued to find out that the noteholders can convert the debt into shares as low as $0.0048 per share – nearly 10 times cheaper than the current market price. The company has been rather liberal with issuing new shares to satisfy older debt at some disturbingly low prices in the past, as we have detailed in previous articles.

The company has a history of charting explosive moves followed by sudden, deep pullbacks, so investors may want to exercise extra caution when trying to chase this or any other double-digit runner up the charts.

Comments 0

Type the characters that you see in the box (5 characters).