Dragni Dragnev

Hybrid Coating Technologies Inc. (OTCMKTS:HCTI) Stumbles Once More

by Dragni Dragnev February 15, 2016

Hybrid Coating Technologies Inc. (OTCMKTS:HCTI, HCTI message board) managed to rally on Thursday after crashing severely the day before, but unfortunately for its supporters, Friday brought the ticker another 7.41% down.

Back in October 2015 it almost looked like HCTI will be able to escape double zero land. That hope was quickly snuffed out, and although it is re-kindled on occasion, anyone who has done due diligence on the company must already know better than to trust it too much. Why?

Well, one look at the numbers in HCTI's latest financial report pretty much tell you all you need to know about the company:

  • cash and total current assets – $0.4 thousand
  • total current liabilities - $6.68 million
  • revenues - $1.7 thousand
  • net loss - $1.3 million

The fact that HCTI had just four hundred dollars to its name four months ago sort of speaks for itself – but believe it or not, somehow that's not the worst thing that this report has to offer investors.

No, a bit of digging reveals that during the first three quarters of 2015 HCTI's shares outstanding have increased from 44 million to approximately 372 million. As of November 20 that number had almost doubled, reaching a whooping 704 million shares issued and outstanding. Who knows how that number has changed in the last two months – or how much more toxic dilution could be dumped on HCTI investors without a second's notice?

Long story short – with filings as horrible as these, it's no wonder that HCTI is constantly searching for rock bottom. Sure, the ticker's volatility may create windows of opportunity for profit, but the risks involved in trying to exploit them seem overwhelming.

As usual, it's up to investors to decide whether or not said risks are worth the potential rewards.

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