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Actual potential revenue is closer to 40 million per year based on their inventory of 200+ producing wells on their 6,000 acres. Their 20+ million barrel of reserves are worth almost $1 billion. The $5 price target is based on the average market cap for the number of producing wells they have in comparison to other oil stocks. This stock is extremely cheap with top notch management and super low float.
came back down to retest penny level.
only 500k @ .0090 but i'm expecting .03 before any kind of real pull back if any. It's no telling where this stock can go. There is absolutely zero resistance to combat in this stock. There hasn't been this much volume traded at these levels...ever. With a 45m float the price could ride up quick with minimal pullbacks.
One more thing I wanted to add. In my experience convertible debt can tend to create really great opportunities. If the company didn't take on the CD then the stock would still be above .17 a share. It's very possible the price may climb back up to the 52 week high given all this analyst coverage. Management may have other tricks in their sleeves that we have yet to see. With crude recovering we may very well see a nice recovery of this stock over the next few months as the sentiment of small oil companies will shift back to the positive side.
So after some more digging I believe I understand the current situation that the company is in. The company has to issue out a minimum of $368,103 worth of common stock to cover its debt per the last quarterly report. That translates to about 105 million shares at the current 25dma. About 20 million of that has been issued out since Sept so there's more coming. If the 25dma recovers above .01 and stays there we may see only 10-30 million shares added to the O/S which won't be too bad. Also the 50 mill share stock option was canceled which is great news. Assuming it ends up at a 120m O/S that would put the market cap right around $900,000 at today's prices which is still relatively cheap considering they have about 200 wells that could have a potential annual revenue of about $38,000,000 at current crude prices assuming all wells are in production 24/7/365. About $76,000,000 million if crude gets back up to $70. Their reserves alone are worth almost 1 billion as they sit in the ground.
Unless this stock gets more volume to recover the 25dma price and stay there...we may see the O/S increase dramatically from the last reported O/S of 79 million. Looking at the price action the last few days it appears there's enough buy in to keep the price at around .01 or higher. My only question is what are they going to do with all these wells? It's been several years and they haven't made much movement on them besides buying and selling them. What is their overall strategy with their leases? These are questions that have not been answered by the company. Unless someone can tell me otherwise It looks like the company is really in the business of getting fixer upper fields. Per the last quarterly report they don't expect to generate any significant revenues for the foreseeable future. The company will continue to pile on more and more debt to continue buying, holding, selling leases and paying consultants.
The price targets made by several analysts were done by comparing the market cap to number of producing wells the company has rights to drill on. This was taken out of the Zacks report 3 years ago....
Need to do more DD this weekend. So far I see minimal convertible debt per their quarterly report and it looks like a lot of private placements have been made through preferred shares. From what I can see management has the interests of shareholders.
$5 price target suggests at least 10 times that revenue figure. There's more to this story than the company is releasing publicly.
I'm just curious how they are able to pay for these acquisitions. There's gotta be some big investors front loading the initial cash for the first few fields. They may be looking to get this stock to a point where they can leverage it to expand their operation. I'm very happy with my initial position here but need to do more DD.
Trying to dig up some DD on this company. The $5 dollar valuation cannot be just for this well. They must have some major acquisitions in the works with huge investors behind them.
With crude recovering I can see value savvy warren buffett types buying up all the cheap bankrupt fields.
Ahh thank you. I must have read that wrong then. So that's almost 4 million in revenue a year as we sit. Is it possible that figure may go up if production is scaled up? Also it looks like they are drilling additional wells. So are we looking at a potential 10 million in revenue from this field with current crude prices in the next year?
Does anyone have a realistic volume if they scale up production? The field has generated 12-15 barrels a day which equates to bout $525 per day. The $5 valuation suggests they must be able to get 5000 to 10000 barrels a day unless the company has several acquisitions in the pipeline. 15 barrels a day seems really low with 17 wells with more being drilled.
What about monday?
I hope management sees shareholders as a priority. It can get expensive to start drilling.
Potential rev's from fields. As crude recovers the valuation will only increase as margins improve.
Such a great post. This is exactly why i've been investing here. It's an amazing opportunity to get in near the bottom of a company with unbelievable potential unfolding as we speak.
Lol, worst part is they think they are actually affecting the price. The stock is going to go up and down without a message board.
No the difference is that drug stocks are known to be some of the biggest pump and dumps out there. Just one failed bio stock yields 1,000 failed OTC stocks. Yet I don't see you over there warning anyone. Maybe your efforts would be better utilized over at one of the many junk bio stocks claiming "massive potential".
HCTI is far from being a pump. The stock never ran up much. We're sitting at a ridiculous 2 million market cap. The stock never ran on anyone's posts here on this message board. You're giving us way too much credit. Nobody has lost a ton of money here in comparison to failed bio stocks.
The only reason HCTI isn't trading higher is because this company has a product that is a rival to polyurethanes that have dominated the industry for over 50 years. Nobody believes that can be possible to replace a product on such a wide scale. That is why they couldn't get financing. That is why the stock performance hasn't been good. That doesn't mean they don't have something ground breaking. If there were new shifts in polyurethane every 5 years and this one showed "promising data"...sure as hell this stock would be just like any other bio pharma stock with "promising data" for a drug trying to get into a huge market.
I've lost plenty of money on the OTC. I know the difference between a winner and a loser. This one has winner written all over it. The EPA has cleared the way for them. If you really think they don't have Fortune 500 deals then don't invest, but i've seen enough evidence with my own eyes to know there is a lot of Fortune 500 company involvement with HCTI. It might not be completely obvious right now but it will be later this year when HCTI has millions on the books.
Maybe it's you. The burned out OTC trader that should wake up.
Or you can let everyone else decide for themselves if the risk vs reward is worth an investment. I don't know who you're trying to save. 99% of OTC stocks are garbage. HCTI so happens to be one of the better bets out there.
What do you say to people that are investing in a billion dollar drug company that is bleeding money?
It's the same story here. They've been in development for 5+ years on a ground breaking technology that is going to contribute to a safer working environment for millions around the world. The beauty of it is there is no lengthy FDA approval process to develop this product but it's been a long time coming to this point getting the EPA regulations in place for this to happen.
They are now transitioning to commercialization phase. So revenue is coming, but if anyone is on the fence I suggest you wait through the next quarterly report.
That's the chance you take with investing at these levels. If you really believe that a company awarded by the EPA is lying about their fortune 500 involvement then simply don't invest, but I guarantee you'll pay 10x the price later this year when things look alot better financially.
HCTI isn't a chemical company. They are a nanotechnology company. You can't really compare them to a Dow or PPG. Nanotechnology is going to be the next huge wave of wealth building technology. The advancements made can apply to almost anything from medical devices to computing. All the big chemical companies are way behind. They don't take chances developing ground breaking technologies with no markets. That's where companies like HCTI come in.
You really should stick to blue chip stocks then because all OTC stocks have rough starts. This one so happens to be better than 99% of them. Say that EOY when hcti has 50 million minimum worth of fortune 500 deals and they have a 30% stake in HCTI. Things change fast.
My guess is there is some sort of milestone set in 90 days. 3 more months till boom time folks.
101k @ .0029 here. 35 million shares. Haven't sold a single one.
The shares could also be used to facilitate the licensing agreements. Product development and royalties in exchange for a peice of hcti.
Preffered cannot convert to common. Valuing the preferreds at 80b is quite optimistic. I hope the fortune 500 companies pay their asking value. Hcti management may have valued the preffereds based on future revenue some of which is already inked so it may not be as far fetched as some of us may think for a 5 year plan.
This happens all the time on big boards. A rare opportunity on the OTC. Once a partner takes a stake in HCTI everyone will be butt hurt about not getting in at these prices.
Crap I totally missed that little part. I think hcti was only doing business for their polyurethane but now their license includes alot more technologies. O_O
I think the 8k is basically saying it's already happening. Might be apart of the licensing agreement to give part of hcti to the fortune 500 company or these warrants were setup for someone to buy later this year upon some milestones. Have to wait and see.
I don't think you're wrong. I just think the article doesn't apply to HCTI since it's trading on the open market and we know the value of the commons and the dilution it's gone through. The article is basically stating stock options can be misleading since it all depends when you were given shares and at what valuation so if you got stock options before a company goes public it may or may not translate into a lot of money depending on a lot of factors.
When we are talking about price per share there's absolutely no advantage to preferred shares. The only advantage with hcti's preferred shares are superior voting rights, getting paid first upon insolvency and have immunity to splits. They can be dilutive just like commons as you have seen they have raised their preffered A/S. The only use for HCTI's preferred shares right now is to have a stake in company ownership and voting privileges. This can translate into profit sharing privileges as well in the future. The commons on the other hand have the advantage of being traded on the open market where the expectation is for the price to appreciate over time. Commons are for investors that look to profit from the appreciation in price on the open market. Preferred are only for company control interest which as a result are valued entirely differently. The actual value of the preferred shares translate to the worth of the company which as a result give commons value because the commons represent a percentage of the company as a whole.
As of right now it looks like if all 1.6 billion shares are issued then the preferred shares represent 10% of the entire company. The preferred shares will definitely be valued MUCH higher than commons because of their superior voting rights. HCTI's management is thinking really big by valuing their preferred shares at 80 billion. This can only translate well for common share valuation if their first Fortune 500 partner is really interested in taking a stake in HCTI. Given this 8K was in effect the day after they executed the Fortune 500 agreement is an obvious indicator to me that their partner is interested in owning some of HCTI.
There's a HUGE difference between confirmation of a Fortune 500 company doing business with HCTI VS a Fortune 500 company taking a STAKE in HCTI. This event is going to completely change the company overnight. It will only be a matter of time before HCTI get's on a big board when this happens.
Tell me how this article is relevant to HCTI? It's targeted towards private company stock options and their potential value for going public or a buy out.
HCTI is already publicly traded and it's trading at a ridiculously low market cap in comparison to the potential market cap of billions in the coming years.
What exactly are you trying to suggest? That owning commons in HCTI will be worthless?
Tell me how commons will "suffer" if a partner buys 5% of series b preferred for 10 million? That would value the company at over 200 million. Commons would would revalue overnight. Please tell me the worst case scenario when commons are valued at 3 million today and 200 million tomorrow. LOL
It's not a positive stance. It's fact. Series b have nothing to do with commons. It's all about voting power. Get that through your little head.
Ur our special village idiot
That is actually an interesting theory. We can come up with ideas and do math all day but it's really hard to say what their intentions are with these preferred shares. I did say earlier that i'd be surprised if I wasn't surprised. Well this 8K is just the start of many surprises :)
If you break down the entire polyurethane industry over the next 5 years you will find that its going to be worth more than 150 billion by year 5 since it's growing 5% a year. The fact HCTI has initiated a 5 year licensing extension and valued their preferred shares at 80 billion dollars tells me they have an ambitious goal over the next 5 years to take a large market share of the polyurethane industry. Owning preferred b shares of HCTI essentially gives you a say into the direction of a large portion of the industry 5 years from now. Hybrid is thinking really really big here.
It will provide a means of financing the company's operation without CD and will facilitate licensing deals (trade HCTI preferred shares in exchange for product development and royalties). There's plenty of investors on the sidelines that question the value of the commons 6 months or 1 year from now. This is a much needed event to bring stability to the commons and attract the big investors. I think that is more important than just revenue numbers.
The 8K is putting confidence into HCTI by issuing 5 year extension on licensing and setting up the structure for current and future partners to take a stake in this technology. I said this before. When news drops of partners taking a 5% stake each in HCTI via preferred is when we will see a revalue of the commons overnight. Hybrid is going to have money coming out of every hole this year.
Yeap. I think I took alot of flak by making that call.
The level of these partnerships is mind boggling. You hardly see this on higher exchanges so to see this happening on the otc is kinda crazy.
I've seen plenty of competitors having a stake of a potential company but I'm not sure if I've seen licensing on such a large industrial scale like this across soo many verticals.
It's been a standard practice to own a company you're partnered with. As they grow you grow.
Getting ready to do series b financing. Partners will all want a piece of this. Valuing the preferred to 80 billion dollars should guarantee they will always stay in control over the next 4 years. I'm just dying here wondering if they are all really going to pay $500 per share, lol.
That article mainly discusses wood finishes which are cheap but toxic. There are now water based versions of them but but they are not nearly as durable.
That's really the problem in regards to "green" top coats and where alot of confusion occurs. Yes, there are low toxic water based versions but their performance is dismal when compared to solvent isocyanate based polyurethane. This is where HCTI comes in with their high performance isocyanate free low voc polyurethane. Figovsky figured out how to make a green polyurethane perform BETTER than isocyanate based polyurethane. It's a true replacement. There's nothing else like it out there :)
I think Q1 10Q will be pure gold. I'd be surprised if I wasn't surprised :p
LOL if .01 is far fetched then you're gonna hate your life when this hits .05 and later this year .10 to .15 and beyond.
It's obvious that you've been burnt way too many times to see what's going on with this company.