A Good Start Of The Week For OSL Holdings, Inc. (OTCMKTS:OSLH)
The stock of OSL Holdings, Inc. (OTCMKTS:OSLH) made several positive percentile movements in price last week and seemed that it was going for the 10 cent per share mark. Yesterday, they managed to go through it after some good news excited investors.
The company is one of the many that have decided to go into the legal medical marijuana sector and try to make something out of the potential it holds. This of course brought some attention to their stock and we saw increased volumes.
Even though the ticker was making good advances for no apparent reason, gaining a whopping 136% on Wednesday last week, the volumes were low and OSLH didn’t attract a lot of attention, registering trade values below $100 thousand.
Yesterday, however, things changed and as the price of the company stock went up 141% to a close at $0.14 we saw some intense trading. By the end of the day there were more than 13 million shares that changed their owners, generating a good $1.7 million in dollar volume.
Also, we have to note that the company paid $1700 to Financial News Media to send emails containing the press release to their database. What is interesting is the fact that OSLH isn’t exactly in a really good financial situation for such spendings, considering their financial filing for the period ended November 30, 2013.
- cash: $1085
- total assets: $3085
- total current liabilities: $4.7 million
- revenues: $0
- net loss: $101 thousand
As you can see, there isn’t a lot of book value and yet the current market cap of OSLH is $21 million. Still, this isn’t something uncommon for stocks that suddenly decide to turn to the medical cannabis industry, drawing attention.
However, this leaves potential for a correction at any given time if the investors aren’t satisfied with the news. This is the exact reason for which we would advise you to do your due diligence and weigh out the risks before making a decision.
Tranzbyte Corp. (OTCMKTS:ERBB) is another company in the medical marijuana sector, whose stock had some decent gains lately, going up 16.98% yesterday. The situation with other companies in the industry like Medical Marijuana, Inc. (OTCMKTS:MJNA) and Growlife, Inc. (OTCBB:PHOT) is similar.
