Healthier Choices Management Corp (OTCMKTS:HCMC) Stock Sees Buying Interest At Lower Level
It was a pretty difficult time for Healthier Choices Management Corp (OTCMKTS:HCMC) as its patent infringement case against tobacco giant Phillip Morris USA was dismissed by the court.
The District Court for the Northern District of Georgia granted Phillip Morris USA’s motion to dismiss the patent infringement case and it came as a severe body blow to Healthier Choices Management. While the stock dropped after the announcement, the situation has changed for the company this week.
The Healthier Choices Management stock has gone off the blocks fairly strongly this morning and has managed to clock gains of as much as 23% already. In this sort of situation, it may be necessary for investors to take a closer look at the decision from the court last week.
At the time it was announced that Healthier Choices Management had fourteen days within which it could file another complaint but after suitable amendments. The company had already announced last week that it was going to file an amended complaint. Over the past months, there had been considerable focus on this patent infringement lawsuit among investors.
There had also been considerable internet chatter about the possibility of a large settlement and such speculation had also resulted in the Healthier Choices Management stock making considerable gains. It is unclear why the stock has rallied this morning but it could be a good idea for investors to keep an eye on the stock and also on the news wires with regards to any specific news.
Is Healthier Choices Management (HCMC) Stock a Good Buy After The Big Fall?
Over the course of the past months, there had been a certain degree of excitement about the patent infringement lawsuit that had been filed by Healthier Choices Management Corp (OTCMKTS:HCMC) against tobacco giant Phillip Morris USA Inc.
However, the Healthier Choices suffered a major setback yesterday after the motion to dismiss the lawsuit by Phillip Morris USA and Phillip Morris Products SA was granted by the District Court for the Northern District of Georgia. The possibility of a large settlement had caused a lot of buzz around the Healthier Choices stock and driven a certain degree of speculation as well. The decision from the court yesterday came as a significant blow to the company’s stock and it tanked by as much as 17%.
It is now going to be interesting to see if the stock can make a quick recovery or not. In this regard, it might be a good idea for investors to keep in mind that all is not lost for Healthier Choices. The court has actually given the company a period of 14 days within which it can submit an amended complaint against Phillip Morris USA.
The company notified that it is going to take up the option and submit such a complaint before the deadline. Last week the company had been in the news after it announced that it was awarded a United States patent for the Electronic Vaporizer Cartridge with Encased Heat Source. The encasing of the cartridge with non-reactive materials is meant for promoting safe vaping.
HCMC Stock: Healthier Choices Management Unable To Sustain At Higher Levels
When a stock is in a phase of consolidation, it is often a good idea for investors to analyse it since there is always the chance of a strong breakout.
Last week, the Healthier Choices Management Corp (OTCMKTS:HCMC) stock had been in the middle of a tough slump. The stock had in fact tanked by as much as 20%, but over the past couple of days, the stock has been in consolidation mode. In this situation, it might be worthwhile for investors to take a look at a key announcement from the company yesterday.
Healthier Choices announced yesterday that The Health Center that is based out of Colorado will launch the sale of Q-Cups, a product for which the company owns the patent. However, that is not the only thing to point out. The Health Center is going to fill the Q-Cups with concentrates made by the NUHI brand and then make them available for purchase at its dispensaries in Colorado.
The company is going to have a soft launch of the product over the course of the coming weeks. The full-scale launch is going to take place on July 10, 2021. After the full-scale launch, The Health Center is going to distribute Q-Cups on wholesale to licensed dispensaries located all over Colorado.
Another major factor that had been responsible for the drop in the stock price had been the announcement about the closing of the company’s rights offering last week. The rights offering had been a highly publicized event from the Healthier Choices Management Corp and the successful closing of the same had led to a bit of a selloff in the stock. However, at the same time, it should be noted that it does not seem to be a factor that is going to affect the stock for long. Investors could consider adding the stock to their watch lists at this point.
Healthier Choices Management (HCMC) Stock May Trade Sideways in Absence of Major Catalyst
The Healthier Choices Management (OTCMKTS:HCMC) stock has been on the radars of plenty of investors for quite a while. This past Friday the stock experienced a bit of volatility, although the trading volumes were quite high. The Healthier Choices Management stock was in heavy action on Friday and as many as a billion shares in the company were traded during the course of the trading day.
For perspective, investors need to note that the average daily trading volume of the Healthier Choices Management stock stands at only 267 million shares. In recent times, the stock has soared from triple zero levels to double zero ones and that has been another factor behind increased interest.
At this point, Healthier Choices Management has as many as 300 billion shares outstanding but the frenzy around the stock on Friday was triggered by the company’s rights offering. Last week the company had also announced that that it was going to issue a subscription period in relation to that offering.
On Friday, most of the investors who already hold the Healthier Choices Management stock noticed a “422rgt019”pop up in their trading accounts. Initially there was a lot of speculation about the significance of the pop up.
Many believed it might have been related to reverse stock split or a dividend payout. Amidst frenzied speculation, the trading volume in the stock soared to new heights. However, it was later pointed out by other investors that the pop up was related to the announcement made by the company in relation to the rights offering earlier on in the week.
As per the provisions of the rights offering, existing investors in Healthier Choices Management are going to be awarded a solitary right for each block of four shares that they hold. Investors will have the right to pick up shares in the company at a future date.