HPCS - HPC POS Systems Corporation:
New Issue Is Ready For Action
The deal: HPCS, a relatively new issue, began trading in December and quickly spiked to 14 cents on relatively light volume. The share price has since taken a signifcant drop, but the stock has been trading steady volume lately and seen a controlled increase in price, which I believe is in advance of a stock promotion.
The hook: HPCS is the sole owner of a 40 year old manufacturer and distributor of fragranced oils and incense. Amongst its recent press releases, which ought to make for good promotional fodder, is the announcement of a program to retail the company's products in 7-Eleven stores across Southern California.
The smoking gun: Back in 2009, two convertible debentures were issued by the company in the amount of $50,000 each. Two weeks ago, in what seems like a couple of suspicious transactions to me, partial ownership of those debentures were transferred to a pair of third parties. The outstanding debt in each of those debentures was reduced by $5,000 in exchange for issuances of 5,000,000 shares of common stock to each of the third parties. There are now 10,000,000 shares for sale by seemingly arms-length parties. I'm going to speculate that within that transaction, is the masked payment for a promotional campaign. At the beginning of March, the share price easily spiked to 3 cents and it is my guess that there will be an attempt to at least revisit that level, although I suspect that since this is a rather new issue and there would seem to be a limited number of shares in the float, that there may be a strong, prolonged effort to get the HPCS share price to revisit the .10s again.
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Disclosure: As of the writing of this alert, I own 350,000 shares of HPCS at an average price of .0115 (1.15 cents).
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