Anastas Gegov

CATASYS INC (OTCMKTS:CATS) Surges Before The Weekend

by Anastas Gegov July 18, 2016

Catasys Inc (OTCMKTS:CATS, CATS message board) hasn’t had the best performance, but it has managed to gain quite a lot of altitude since the beginning of the year. The company stock rarely sees a lot of trading, but has managed to gain more than 100% in value and keep it.

 

The company’s market cap has already increased to more than $40 million, which looks a bit more considering its financial performance. Here is a quick example of some of the contents of its financial report for the first quarter of the year.

 

  • cash: $262 thousand
  • current assets: $1.3 million
  • current liabilities: $13.7 million
  • revenues: $728 thousand
  • net loss: $4.3 million

 

While the fact that CATS is generating revenues and it has increased, compared to the same period last year, we can’t go past the massive losses that the company is enduring. The liabilities are also significant, which is always a bad sign.

 

Due to the rampant spending CATS has had to acquire funds for the company through sale of notes and shares. A limited liability investment company called Acuitas Group Holdings, LLC and owned by CATS CEO, Terren Peizer has lent $1.3 million to Catasys this year, which is a thing that you should consider.

 

Still, CATS managed to surge in Friday’s session and gain 13.49% in value for no apparent reason. As the ticker was going for a close at $0.80 we saw a total of 160 thousand shares switch hands, generating $127 thousand in daily dollar volume.

 

Today’s session is even more explosive and CATS is already 22.50% up the charts. Doing your due diligence and weighing out the risks before committing to any trades, however, is crucial.

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