I like the company Hard to Treat Diseases, Inc. (HTDS). The name doesn’t exactly roll off the tongue, but I have blogged it in the past (read it here) and it did REALLY well for my readers. My staff also did a “technical trade report” on HTDS back in early November (read it here).

I continue to track HTDS and think that now might be a good time to take another look.

Volatility has been the keyword for HTDS.  When I first profiled it, it was trading at around .01, it zoomed shortly after to .014 (a gain of over 40%).  Then it dropped to .008 and zoomed back to set a 52-week high of 2.1 cents.  Here is the chart so my readers can see for themselves.

Here is some background info on the company from my previous blog:

It is in the Pharma business, but not really much of a player.  They have operations in Serbia and China under two separate operating divisions and appear to have a “story to tell”.  .

In China they operate through Shenzhen Mellow Hope Pharm Industrial Co Ltd.. According to the company, Mellow Hope is the biggest exporter of Biological Vaccines in China.  HTDS purchased Mellow Hope in February of this year in an all-stock transaction.  It appears that the company has a viable product line and an active global client base.  Here is a link to the Mellow Hope web site that makes for interesting reading.

In Serbia, they have a controlling interest in a company called Slavica Bio Chem Company. Their primary focus involves the enhancement and modification of existing approved drugs such as “Virazole” for the purpose of chemical repair of damage to the CNS (central nervous system), MS (Multiple Sclerosis), SARS, Hepatitis C and HIV.

The challenges I see for HTDS is making all of these positive press releases into real numbers on the income statement.  Also, they have a capital structure as confusing and as byzantine as any I have seen.  Their puppet masters, Minamar Group, have got all sorts of preferred, restricted, under-the-table shares that I can’t figure out the capital structure.  Keep in mind, also, that pinksheets.com has given these guys CAVEAT EMPTOR (let the buyer beware) because HTDS does not report ANYTHING….at least not yet.

I told you that trading HTDS is living dangerously.

SO…..this is a short-term trade only IMO. To me this is only a chart play.  Watch to see if the stock holds this resistance and turns positive again.  HTDS is very like SPNG.  It has such a bloated capital structure that it is almost impossible to move the stock out of sub-penny land.  But, it could be a nice play right where it is.

Good luck and good trading

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