Hydrophi Technologies Group Inc (OTCMKTS:HPTG) has been picking up the pace climbing to record levels not seen since its unprecedented decline in March of 2015. HPTG has seen an explosion in volume and interest as it has risen from steadily from the ashes with its recent acquisitions. The stock has had a parabolic surge of over 1,700% that has captivated the market.
Investors are excited about HPTG and it’s easy to see why. This has been helped by the announcement of the company acquiring a freight company called Pro Star (Pro Star Freight Systems and Pro Star Truck Center). The 2014 unaudited results of Pro Star was $27.3M in revenues with net income of $660k. This is huge for HPTG which only has a market cap of $7.77M and only $280k in revenues. The acquisition will immediately increase HPTGs revenues by more than 96 times if Pro Star continues to perform at the same levels as 2014. In addition, profitability for HPTG should be just around the corner given this recent acquisition. It was purchased with a combination of cash, notes and preferred stock according to the SEC Filings.
HPTG’s CEO, Roger M. Slotkin stated “We believe the Pro Star business model, growth potential and significant expansion possibilities make this acquisition extremely prudent and should yield significant shareholder value.” Pro Star is a long haul freight company with a fleet of over 150 trucks. It is an interesting acquisition given that HPTG is “a leading developer of water-based hydrogen fuel production systems. The Company’s technology isn’t a fuel cell, nor is it a hydrogen alternative to traditional hydrocarbon fuels.” according to the company’s website.
In addition to the acquisition, HPTG has announced another purchase to further expand and grow Pro Star. It has acquired 30 New Semi-Trailers which will help decrease HPTG’s leasing expenses. The estimated savings is approximately $250k per year. The more recent acquisition HPTG has made is the purchase of land in Hammond, Indiana. The land is a 1 acre parcel that was purchased for $300,000. The land will be developed to help HPTG’s existing repair center and operation expansions throughout the USA.
It is clear that HPTG is moving aggressively to grow and expand. It has announced three major purchases and investors are bidding up the share price expecting bigger things to come. With the acquisition of Pro Star, 30 new Semi-Trailers, and land for a repair center it is not too hard to see why shareholders and potential shareholders are excited about the company and the recent run on the stock. The purchase of Pro Star will hopefully improve HPTG’s financial situation.
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Currently trading at a $7.77 million market valuation HPTG has been on an acquisition and purchasing spree that looks to help position the company for future growth and capitalize on the freight industry. HPTG is definitely a very different company then it was this time last year and it appears to have reset its corporate strategy and objectives. This will be one stock to keep an eye on to see if its surge can continue and what new acquisitions or purchases are on the horizon to act as catalysts.
We will be updating on HPTG when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with HPTG.
Disclosure: we hold no position in HPTG either long or short and we have not been compensated for this article.