Cybernetic Technologies Ltd. (OTC: HPIL) is an EV penny stock that has been on many investors’ radars for some time despite its profile just recently being approved. HPIL is a tech and EV holding company which excited investors following its announcement on May 24th regarding an authorized share reduction. The decision to decrease its AS from 200 billion to only 60 billion is an effort by the company to prevent dilution. As a result, the stock gapped up 95% before seeing a 248% run up of over 8 days in June.
However, on August 17th the OTC website displayed an error, reporting the AS shares as 200 billion rather than 60 billion. The company was quick to point out the error and it was brought up at the conference call. The tech company’s CEO Stephen Brown, explained that this error was related to issues with the TA and OTC Markets. He shared the appropriate paperwork for a third time with the OTC but is unsure when the company’s profile will be updated accordingly. As typical for HPIL, the conference call was wide ranging and touched on a variety of subjects including: a movement of NFT from its procurement subsidiary to another entity, a shareholder buyback direct between shareholders and investment individuals, progress on its EV technology, and the number of phone calls the CEO is taking from shareholders.
While taking shareholder questions, the CEO Stephen Brown elaborated on the shareholder buyback explaining that it would be closed on September 17th. He clarified that the company does not have a direct role in the transaction but he plans to talk with the purchasing shareholders on a transactional basis to retire shares purchased in the buyback. This would depend on whether the parties are amenable to it and is considered a separate transaction altogether.
With its profile now verified, the company is focused on updating its filings in order to become pink current before next month’s deadline. On August 11th, the company shared that its request to be approved for an OTCIQ application was sanctioned by the OTC, however its application will require a higher reporting standard and may pose a challenge for the company which has failed to share its quarterly reports since 2016.
HPIL’s CEO, Stephen Brown, also stated on August 11th that the company will continue to act as a parent holding company for Cybernetic Technologies, Apogee Dynamics, NFT Procurement, World Gaming Group, and Medusa Artificial Intelligence. As a worldwide diversified company, HPIL is engaged in developing projects with cutting edge technology and this is bringing success to its numerous ventures.
Apogee Dynamics Ltd is one such division of HPIL. Apogee is currently developing a revolutionary battery powertrain designed to never need charging while in use. The company hopes to apply this EV technology to various vehicles, boasting that the powertrains will only need to be “plugged in” for diagnostic purposes. Currently, the subsidiary is working on an electric auto tentatively named “Apogee D7”. This electric vehicle will ideally seat 4 and incorporates the Apogee powertrain along with groundbreaking, “disruptive” technology from its partners.
Led by Co-Founder and President L. Ferrox Tutinean, Apogee was formed as recently as June 15th but the team may have been working under Tutinean before that. Tutinean was privately employed at the Material Science division of the Naval Weapons Laboratory and has worked alongside the US Navy and Marine Corp.
HPIL’s second tech division, Medusa Intelligence, is launching a meta-data analytics program designed for tracking using algorithms. This subsidiary – launched as recently as July – is also involved in A.I. technology and has signed an NDA with Ansys for discussion purposes as the two hope to collaborate with each other and Apogee. Currently, the division is looking to apply the meta-data analytics to the entertainment industry before exploring other areas of application.
The company has also launched into the NFT sphere with its NFT Procurement division which is seeking to auction off NFTs. The planned auction for August 10th was delayed but according to a May press release, this subsidiary has signed a partnership agreement with Origin Protocol to “collaborate to mint NFT’s on Origin’s Platform and offer them for sale to third party purchasers on a website created and hosted by Origin”.
Given the CEO’s remarks at its conference call, investors can hope to see some action with this subsidiary in the coming weeks. In the same vein, HPIL is working on a platform for multi-level tournaments, cash prizes, and “Gamezcash” tokens. This could be affiliated with HPIL’s Zippa gaming platform which is set to launch September 1st. The company appears enthusiastic for Zippa’s launch tweeting, “ZIPPA is coming along, so be ready gamers for the ultimate platform. Look out TikTok!”
Buzz surrounded HPIL in the days prior to its conference call, but @JohnRSpano1 called HPIL along with 3 other stocks for potential bottom plays or runners. With over 35 thousand followers, @JohnRSpano1 is known for his in-depth DD.
Usually, HPIL experiences a dip following its conference calls. On August 17th, the stock fell about 15% as the call was broadcast. However, considering this is a long-term trend for this EV penny stock it is not yet indicative of an overall downturn. This stock has generally followed the principle of higher highs and lower lows these last 6 months – shooting up notably in June with the company’s various announcements. Yet, August 16th the company saw its 52-week high of $.0119 likely in relation to the AS reduction.
Currently, the stock has a market cap of around $82 million. Its OTC profile has been updated to reflect 60 billion authorized shares, of which 14 billion are outstanding. The stock has seen a rush recently leaving its volume currently around 14.93 million. This EV penny stock is currently trading at $.0060 following the conference call but its new resistance level appears to be around $.0110-.0120. That being said, its 3 month support level is closer to $.0048. Depending on upcoming catalysts such as the company becoming pink current and dropping its filings, the stock could gap up towards a penny in which case, now is a dip buy opportunity. But given HPIL’s current timeline and the stock’s overall volatility this is likely a short-term trade.
Should you Buy?
At the moment, HPIL has a nearly flat RSI of 51.63. There is very little distribution between the MACD indicator and Signal Line making a crossover very likely. With accumulation up-trending the stock appears to be respecting its support, but could drop further before correcting.
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