DS Healthcare Group, Inc. (NASDAQ:DSKX) Pays Again with New Shares for PR Services

[[tagnumber 0]]DS Healthcare Group, Inc. (NASDAQ:DSKX) just filed a registration statement for another 200,000 newly issued shares of its common stock, yet the share price of the company literally exploded in the last trading session. Apart from the lack of any significant cash reserves, the latest 10Q shows also the deficit is still growing and no profits are in sight.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]DSKX surged over 23% yesterday, closing the session at $2.62 for a share. Trading volume for the day was the highest for the past year which implies that DSKX could continue the rally today as well. Technically, the stock looks in a very bullish position, however, longerterm the company looks much more eligible for shorting at this point.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]What caused the excitement on the market was probably the latest press release of DSKX. It came up on Monday, announcing the companys new incentive rewards program for its distributors. The company obviously hopes to boost its own sales this way, yet for now it managed to attract traders to the stock.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 12]][[tagnumber 1]] [[tagnumber 0]]DSKX latest quarter report shows sales increased only slightly from the first quarter of last year, while compared to the last two quarters of last year there is even a consequent decline. Total accumulated deficit so far is nearly $10 million and the available cash will probably not last for more than a few months.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]Just a few days ago DSKX filed a registration statement for 200,000 common shares issued to a PR company to provide various marketing services. Although the amount does not seem that huge in relation to the already outstanding 16.3 million shares, it should still raise dilution concerns as the company has a history of paying to employees, consultants and distributed with newly issued shares and that practice will most probably continue.[[tagnumber 1]] [[tagnumber 20]] [[tagnumber 1]]

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