Healthier Choices Management Corp (OTCMKTS:HCMC) Stock Sees High Volume: Now What?
Although the market was largely flat on Monday, the Healthier Choices Management Corp stock emerged as one of the few exceptions. Investors flocked to the stock in a big way yesterday and that saw the Healthier Choices Management Corp (OTCMKTS:HCMC) stock ending up with strong gains.
There was no news about the company yesterday but it is clear that investors may have found something that instigated them to get into the stock yesterday. It should be noted that the move in the Healthier Choices Management Corp stock yesterday turned the stock into a ‘double zero’ stock from a ‘triple zero’ stock. Despite the rally in the stock yesterday, it should not be forgotten that the stock has experienced considerable volatility in recent weeks due to the situation with its patent infringement lawsuit with tobacco giant Phillip Morris.
The positivity around the stock may be actually related to the patent infringement lawsuit. Although a court had granted Phillip Morris’ motion to dismiss the case, Healthier Choices had the option of filing for an amended complaint, and this past Friday the company did take up this option.
The patent infringement lawsuit is related to the IQOS device and it has been alleged that the combustion electronic pipe actually infringes on a patent held by Healthier Choices. After the filing of the new complaint, investors are possibly feeling a lot more positive about the community. It now remains to be seen if the Healthier Choices stock can hold on to this momentum and end up adding to its gains.
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.
HCMC Stock: Healthier Choices Management Stock Breakout Imminent?
The Healthier Choices Management Corp (OTCMKTS:HCMC) stock was back in action yesterday after the company announced the expiration of its rights offering. The announcement from the company resulted in greater interest in the Healthier Choices stock and it ended the day with gains of around 4%.
As per the announcement from the company about its rights offering in the past, investors were entitled to pick up common shares in the company for a subscription price of $0.0010 a share. They represented a 25% discount on the share price, but the rights are no longer exercisable as the offering expired yesterday.
However, it should be noted that the whole thing turned out to be a quite lucrative for Healthier Choices. The company announced that the total number of subscription rights that were actually exercises added up to around 27 billion shares.
That is a staggering figure and on top of that, initial estimates suggest that Healthier Choices is going to get gross proceeds of as much as $27 million from the right offering. It is necessary for investors to keep in mind that the final amount that is going to be received by the company from this offering is yet to be finalised and is going to be verified by the subscription agent.
The announcement of the closing of the rights offering was an important one for Healthier Choices since last month there had been some confusion with regards to the date. Some of the brokerage houses had offered dates which were earlier than the original closing date and eventually Healthier Choices had to extend the deadline.
In addition to that, even after the extension, the deadline set by different brokers continued to be different, and earlier this month, the company sent out a press release specifying the different deadline dates offered by different brokerage houses. However, the whole thing is now closed and it is going to be interesting to see if the Healthier Choices stock can add to its gains today or not.
HCMC Stock Corrects As Healthier Choices Management Reports Quarterly Earnings
One of the stocks to have been on the radar of several investors in recent weeks is that of Healthier Choices Management Corp (OTCMKTS:HCMC). Earlier on in the week, the company announced its financial results for the quarter that ended on March 31, 2021.
While the results may have been positive, the market did not seem particularly enthused and on Tuesday, the stock fell by as much as 9%. As a matter of fact, it should also be pointed out that the Healthier Choices Management stock has tanked by as much as 30% from its recent high.
In the first quarter, the company managed to generate net sales of $3.5 million, which reflect a decline of 14% year on year. The sale figures last year had been high due to a spike in sales in groceries due to the coronavirus pandemic.
However, the total operating expenses incurred by the company during the period actually went down by 15% year on year to hit $2 million. Healthier Choices Management also saw a 1% year on year decline in the losses as it limited its losses to $696000. On the other hand, the losses adjusted for EBITDA came in at $394000, which reflected a year on year decline of around 9%.
The Chief Executive Officer and Chairman of the company Jeffrey Holman stated that the performance reflects the normalization of sales and also the improvement made by the company in controlling its costs. Earlier on in the month, the company had also made an announcement with regards to its rights offering.
The date of the rights offering from Healthier Choices Management is on May 18, 2021, and people need to purchase shares in the company by 4 p.m. Eastern Time on May 14, 2021. Investors are going to be given the right of buying one non-transferable subscription right each block of four shares that he owns.