Directview Holdings Inc (OTCMKTS:DIRV) Takes A Big Step Back

[[tagnumber 0]][[tagnumber 1]]This year didn’t start very well for the stock of Directview Holdigns Inc (OTCMKTS:DIRV). After hovering between 2 and 3 cents per share in January we saw the ticker descend into double zero land in February.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]It has since been struggling to regain its positions above the 1 cent per share mark and briefly managed to do so in the beginning of May. As the financial report for the first quarter of the year was filed late in the month, however, we saw [[tagnumber 6]]DIRV[[tagnumber 7]] descend once again. The reason was that the numbers contained in the balance sheet of said report are far from flattering.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $38 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $116 thousand[[tagnumber 13]] [[tagnumber 12]]current liabilities: $4.4 million[[tagnumber 13]] [[tagnumber 12]]revenues: $192 thousand[[tagnumber 13]] [[tagnumber 12]]net loss: $127 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]These numbers, however, are far from the only red flag that [[tagnumber 6]]DIRV[[tagnumber 7]] has to show. The company stock has been pumped regularly pumped since April 12. The compensations that promoters have received for their efforts are ranging from $3,000 to $10,000 and have surely helped the ticker at some point.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Just like the latest pump email that was sent on June 17 and was accompanied by a press release from the company. We saw the [[tagnumber 6]]DIRV[[tagnumber 7]] record some impressive gains in the two sessions following the PR and the promotional newsletter.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]But the paid promotions and the horrible financials of the company aren’t the end of [[tagnumber 6]]DIRV’s[[tagnumber 7]] red flags. As we wrote in our previous article, [[tagnumber 6]]DIRV[[tagnumber 7]] has experienced massive dilution, mainly due to the fact that their operations are primarily funded by issuance of convertible debt. After the 1 for 30 reverse split that the company performed it was left standing with 130 million shares as of March 31. In less than two months later that number had grown to over 232 million.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Considering all this, we aren’t that surprised that [[tagnumber 6]]DIRV[[tagnumber 7]] suffered so much in the last session before the weekend. We saw the ticker drop 21.69% in Friday and close at $0.0065. The 14.94 million shares that changed their owners generated $104 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]So far, [[tagnumber 6]]DIRV[[tagnumber 7]] is doing good in today’s session. The ticker, however, is highly volatile due to the paid promotional efforts and other red flags. Doing your due diligence and weighing out the risks before making any investment decisions is crucial.[[tagnumber 2]]