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On Wednesday’s trading session Catasys Inc. (OTCMKTS:CATS) share price declined more than 11% to close the trading session at $1.76. The decline came at a share volume of 148,783 compared to average share volume of 15,157. The sharp plunge was reported just a day after several pumps targeting the company were circulated on the web. As evident from the charts, the stock had recorded trading activity at minimal volume before thee touts by OtcbbJournal, PennyStockPicks and StocksImpossible started circulating on the web two days ago. For the day, the stock has started well with gains of more than 5%.

The impact

Ignoring the up move in today’s opening trade, the paid pumps have already supported Catasys stock price. In fact, the pumps proved to be counter-productive as the stock declined immediately after the first round of pumps hit inboxes. In last few trading sessions, it is for the first time the stock is showing first signs of recovery.

The performance

Much more like other OTC stocks, Catasys doesn’t have much at its name that could reassure investors of strong performance on the charts. As per the last 10-K, The company had cash of $708,000 and $1.5 million of total current assets. The total current liabilities were massive at $2.9 million. The annual revenue was $2 million while annual net loss stood at $27 million.

The analysis

The net loss of $19.9 million out of the total net loss of $2 million was documented as net loss due to “Fair value adjustment on warrant liability.” Ignoring the figure, the net loss is still terrible, particularly for a company that has completed the development stage and entered into phase of generating revenues. The only good news is that the company has commenced enrollment process of patients suffering with anxiety disorder under its Kansas “OnTrak Program”.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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