Investors were delighted when Changing Technologies Inc (OTCMKTS:CHGT) informed that it will commence in-house beta testing for its 3D printing Portal on March 30. The real excitement started when the company announced that it is advancing with its new Portal that is an ‘Oracle’ of 3D printing information.
The news lifted the mood and stock price surged more than 20% to close at $0.376 on Friday’s trading session. It has started strong on Monday with gains of more than 20% in early trading session.
There is no doubt that 3D printing is one of the most popular and trending technologies at the moment. It is the prime reason the firms market themselves as “3D printing” companies. The only term can get them a much needed attention.
The SEC has therefore warned investors to approach caution with such firms. The trust and hype in the company’s boastful claims alone should not act as a base to invest in the company’s stock. Changing Technologies did release some boastful press releases and they even indicate that the company is close to introducing something grand in the world of 3D printing.
As per the latest 10-Q. Changing Technologies posted $14,000 in cash. The total current assets came at $14,000 and $111, 000 as total current liabilities. It never reported any revenue. Moreover, the net loss stood at $232, 000. The dismal financials of a company that is said to have a market cap of $22 million. It in itself serves as a warning to diligent investors.
The only positive part is there is not much dilution going on with Changing Technologies Inc (OTCMKTS:CHGT). There are convertible notes payable at almost $260,000, the debt cannot be called as entirely toxic and crushing. Moreover, it translates into share at conversion price ranging from $0.41 per share to $0.5 per share.