Since 1986 - Covering the Fastest Computers in the World and the People Who Run Them

Language Flags

HPC Market Watch

March 02, 2011 at 15:06 PM EST
Raser Technologies, Inc. (OTC:RZTI) Sinks Down on Disturbing News
Raser Technologies, Inc. (OTC:RZTI) aimed the bottom of the chart. Yesterday, the stock fell down almost 35% at the shocking volume of over 4 million shares traded. Raser started rushing down just after the latest news about their business was released. Yesterday, the company reported that in view of their current cash resources, non discretionary expenses, debt and near term debt service obligations, the team was intending to explore all strategic alternatives to maintain their business as a going concern. This might also include a sale or merger of the company, as well as one or more other transactions, including a comprehensive financial reorganization of RZTI. Obviously, the news struck investors and they started dumping off shares intensively. Now, unless Raser finds a way to get out of the crisis, it is quite possible the down trend to continue. Raser Technologies is an energy company focused primarily on geothermal power development. Historical data shows that the latest gains of RZTI were due to positive news on the company's activities. However, every time the stock was up, the up move was broken shortly. The question is what will happen with RZTI this time?[BANNER] In any case, while the company's 10-Q report looks disastrous, the next move of the stock is hard to be predicted. The company's liabilities are almost 50% higher than its totals assets and it has a long-term debt to pay. Apart from this fact, by September 30, 2010 the accumulated deficit of RZTI exceeded $194 million and the stockholders' deficit was around $50 million. As Raser are not generating significant revenues, their cash and cash equivalents will continue to be depleted by the ongoing development efforts, as well as by their general and administrative expenses. Thus, the company will need either to find additional financing fast, or to explore other alternatives for maintaining their business.
Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here