Healthnostics, Inc. (PINK:HNSS) Great Volume Catches The Eye of Investors

Broadly covered by PRs and newsletter alerts at the end of last week, Healthnostics, Inc. (PINK:HNSS) caught the eye of investors with suddenly unprecedented volume. With a market cap of $6.8 million on almost twice as much liabilities as assets, the stock in fact deserves the attention.

And on the persistent acquisition rumors still running, the market expects even more. Yesterday, Healthnostics entered the market below the previous close and the massive selling at the beginning of the day did not disturb traders, as they seem to expect the real big news to come yet. The price dropped towards the end of the day and closed 31.38% down, but the $0.0199 close still giving support, the lack of consolidation and the exploding volumes have been broadly promoted as promising a blue-sky breakout soon.

Apart from the technical indicators and the promised earnings boost up last Thursday, it is unclear if Healthnostics has a fundamental base whatsoever to offer. No financial data has been filed ever, but according to the two reports submitted to the OTC Disclosure & News Service, the company has 343.5 Million shares outstanding. Thus, the current market cap of over $6.8 million seems incredible, given that Healthnostics reports $474,000 liabilities against $282,000 assets.

The last three months have been a quiet period for Healthnostics’ Investor Relations, and this has been well reflected in the lack of trading activity for their stock. Though, last Thursday the company’s PRs got in touch with investors again and provided a lot of buzzing around the biotechnology stock, currently traded under $1.

The acquisition plans announcement was perfectly timed, as the stock has been bouncing off the upper band over the last two weeks, but investor interest was not high enough for a considerable jump. That problem has been then easily resolved. After the press release last week, the stock got broadly alerted by investor newsletters, resulting in the unprecedented volumes in the past two trading days and another breakup on Friday.

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