Nocopi Technologies, Inc. (OTCMKTS:NNUP) skyrocketed an astounding 432.99% up the charts yesterday. As its chartsindicates, the stock had been caught in oblivion for a long time before the promotional entities singled it out for a colossal wave of touting.
The financials
A quick glance at Nocopi reveals that the company has not done anything meaningful in the last few years. Its past reports are not impressive, which is a common phenomenon seen with the OTC listed firms. For the quarter ended September, 2015, the company reported cash of $154,000. The total current assets came as $340,000 while current liabilities amounted to $750,000. Nocopi recorded net loss of $50,000 in the quarter while revenue came at $236,000. It clearly indicates regular OTC market mediocrity appears to rule in company’s filings.
On a positive note, there doesn’t appear to be severe dilution eroding investor value to date. But again, this may fade away sooner, because as the quarterly report clearly indicates, Nocopi has some convertible debt that turn into shares at prices in a range from $0.02 to $0.025. So, if this conversion happens, there could be a severe catastrophic impact on the stock’s latest pumped-up state.
The take-away
As per the latest quarterly update, on a Y-o-Y basis, the sales have surged nearly 13%, but from the previous quarter, the revenues have plunged almost 25%. Due to unstable operations, investors lost interest in the company at one point and Nocopi’s stock moved into obscurity. In fact, the cumulative volume in the first 12 sessions of February was just more than 2 million shares.
The strong gains in last few trading sessions can largely be attributed to the promotional campaigns, who decided to end the low-volume trading state of NNUP stock. So, despite being no paid campaign, the promoters managed to bring Nocopi stock back to life.
