Adaptive Medias Inc. (OTCMKTS:ADTM)’s Recovery Didn’t Last
Friday saw what looked like the start of Adaptive Medias Inc. (OTCMKTS:ADTM)’s resurgence, with a 50% up – but, predictably, that turned out to be a dead cat bounce.
Yesterday brought the ticker 33.77% down once more, nailing ADTM right to the penny mark again – and, as we have said before, it’s no real wonder that events turned out this way, for one very simple reason.
ADTM seems to have very little to offer in terms of investor value. The company’s financials would be a laughingstock, if people paid them attention at all:
- Cash – $7 HUNDRED
- Total Current Assets – $994 thousand
- Current Liabilities – $5.3 MILLION
- Revenue – $173 thousand
- Net loss – $5.4 million
And, if anything, the company’s share structure is in an even worse shape. 19 million out of ADTM‘s 33 million shares currently outstanding were printed between March 2015 and May 20, 2016.
That’s a horrifying statistic in and of itself, even before you factor in the fact that said shares came into existence as a result of conversions of debt at a rate of “60% of the lowest trading price of the Company’s common stock for the previous 25 trading days prior to the conversion date”.
So in short, what we have here is an financially unimpressive underachiever buried under heaps of toxic debt.
With this in mind, it should not be all that difficult to see why ADTM‘s bounce turned out to be of the deceased feline variety. There was never much hope for recovery – not with the company being in such a sorry state. What’s more, it wouldn’t be surprising to see ADTM sink even deeper now – and who knows when it will find rock bottom?
