HealthCare Triangle (NASDAQ: HCTI) stock is up 141% this morning. HCTI stock is moving on no news, just what looks like a speculative flurry. Now, of course, it is possible for us to be wrong on this. But we'd expect much of this price rise to fade away over the course of the trading day. Our analysis is that this is a frenzy more driven by the thin liquidity of the early morning premarket than anything else. This is not an uncommon happenstance in small cap pharma companies and we're happy enough to say that this is what it is. All over again.
As to what's inside Healthcare Triangle: “Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy,...” and it's not that difficult to predict what the rest of the blurb is going to say. Yes, the word “collaborative” does make an entrance.
The point to grasp here is that absent some new big enough that it would have to be announced there's little here that makes us think there's likely to be something that will move the valuation 100% in a morning. Therefore our first assumption should be that there isn't something that, substantively and objectively, does move the valuation 100% in a morning.
Healthcare Triangle stock price from NASDAQ
So, what is actually going on here in HCTI stock? We rate this as being as with Painreform. Small cap, possibly low foat, pharma company stock prices are really very easy to manipulate. So, when they do soar then our first assumption is that it is a manipulation - or, possibly, a speculation that has just got a bit too exciting for all involved. Now, that needs to be checked and there's nothing on Edgar. So, no official announcements to the market for the past couple of weeks. This isn't even like CytoMed, where people just got a bit too excited about some real news.
This is some level of buying in those thin early morning markets that has set off a momentum trade. We'd expect the early buyers to be selling into this risen price - and we'd also expect this price to fall back during the day.
HCTI is having some fun speculation, not a fundamental rerating.
