Directview Holdings Inc (OTCMKTS:DIRV) Spikes On News
Directview Holdings Inc (OTCMKTS:DIRV) managed to jump 24.53% on heavy volume yesterday, after making an optimistic announcement. But will it maintain its gains?
True, the announcement of DIRV‘s plans for its body-worn cameras to be connected to the U.S.’s largest 4G LTE network sure did make a splash. It attracted the investors’ attention, because it smacks of a myriad opportunities for profit that unfold before DIRV.
Unfortunately, nothing the company has done to date suggests that DIRV is even remotely capable, or inclined, to exploit such opportunities.
The company’s latest financial report paints a picture of idle mediocrity:
- cash – $38 thousand
- current assets – $116 thousand
- current liabilities – $4.4 MILLION
- revenues – $192 thousand
- net loss – $127 thousand
Sure, DIRV is making revenues, but the resources it can bring to bear are laughable, while at the same time it is heavily indebted. Further, a significant chunk of that debt takes the form of convertible notes.
As of March 31, DIRV had more than half a million dollars worth of notes that can be converted into common stock and dumped on the market – and the issuance hasn’t really stopped since then.
And while on the subject of investor value suffering under the weight of debt conversion, DIRV‘s dilution history and its current share structure is simply horrendous:
- As of November 19, 2014, DIRV had 382 MILLION shares outstanding
- On February 24, 2015, DIRV performed a 1 for 30 REVERSE SPLIT
- As of May 20, 2015, DIRV had 232 MILLION shares outstanding
These numbers more or less encompass all that needs to be known about the company.
And, let’s just say that they don’t bode well. DIRV managed to rise on hype, but now it finds itself in a precarious state, as the hype that pushed it will soon dissipate. When this happens, the ticker will find itself in a position where it has nothing keeping it afloat, while at the same time there are many factors pulling it down.
Investors should weigh all these risks carefully and act accordingly.
