DirectView Holdings, Inc. (OTCMKTS:DIRV) Pops on Media Coverage
Yesterday’s session saw the stock of DirectView Holdings, Inc. (OTCMKTS:DIRV) shift in higher gear once more. DIRV opened with a significant gap up and ran up to a close 40% in the green. Volume, which had all but fizzled over the previous session, picked up again, at 25.2 million shares changing hands. The push was triggered by the company’s latest press release.
DIRV put up its latest PR a couple of hours before the opening bell yesterday. The company announced that the collaborative effort of DIRV and xG Technology, Inc. (NASDAQ:XGTI) to make a new wearable body camera was “highlighted” in a news broadcast on a local Sarasota TV station WWSB, an affiliate of ABC News. When any OTC penny stock gets television exposure things more or less always play out the same. In the case of DIRV, the ‘media noise’ scenario led to a price jump of 40%.
DIRV first clawed its way out of sub-penny land after originally announcing its agreement with XGTI. An OTC company scoring a deal with a NASDAQ-traded entity is usually good news. The impact of this particular agreement is somewhat lessened by the fact that XGTI is halfway through its grace period before it gets delisted from the NASDAQ due to dropping well below the $1 minimum bid requirement of the exchange. XGTI last closed at $0.34 per share and currently commands a market cap of about $13 million – not exactly the sort of thing that comes to mind when thinking of NASDAQ corporations.
DIRV itself is not in a blooming state either. Here is what the company last reported as of December 2014:
- $13 thousand in cash
- $84 thousand in total assets
- $4.7 million in total liabilities
- $0.51 million in annual 2014 revenues
- $1.23 million in annual 2014 net loss
DIRV also went through a 1-for-30 reverse split of its common stock in February 2015. The company’s latest filing informs of the issuing of a new convertible note for $115 thousand, with a fixed discount of 30% from lowest traded price 30 days prior to conversion.
It remains to be seen whether the news of the media exposure DIRV got will push the price any further up the charts.
