Decision Diagnostics Corp. (OTCMKTS:DECN)’s Crash Continues
Decision Diagnostics Corp. (OTCMKTS:DECN) lost another 18.85% of its market cap yesterday, dropping below the twenty cent threshold – and it only seems like it is gathering even more downward momentum.
As evidenced by the charts, things haven’t really been going well for DECN since late May 2016. The ticker experienced a nice resurgence in the aftermath of the filing of its latest financial report, and it’s not difficult to see why. The numbers it gave investors show a definite improvement over the previous one:
- Cash – $ 1.4 million
- Total current assets – $3 million
- Total current liabilities – $3.8 million
- Revenue – $163 thousand
- Net loss – $ 1.4 million
Interestingly enough, the surge didn’t last very long, and ever since its end the ticker’s periods of respite and recovery have been few and far in between. Even the company’s success in the Johnson & Johnson trial didn’t really manage to keep DECN afloat, in spite of being excellent news for the company.
At this point, investors must be asking themselves – what factor can be so detrimental to DECN investor value to warrant such a hard and prolonged crash?
The answer to that question is simple – stock-related shenanigans. Very few OTC Markets pinksheets entities can boast about having a clean and lean share structure – and DECN is decidedly not one of those.
The company turned $597 thousand worth of debt into 3.3 million shares of DECN common stock in the last quarter of 2015 alone. February 2015 saw another $366 thousand worth of convertible Debt transformed into 2.58 million shares. Another 3.2 million shares of the company’s common stock were printed at a price of approximately $0.2 during the last reported period – and the rest of the 5 million total shares that have been issued by mid-May 2016 saw the light of day at even more ridiculously low prices.
Under these circumstances, it should not be all that hard to see why the ticker is always crashing, even if the company’s general situation seems to be improving over time. Investors should definitely take note of such details.
