First Choice Healthcare Solutions, Inc. (OTCMKTS:FCHS) Repeats Early May Volume Spike

After another stretch of low volume days and single-digit moves in either direction, the stock of First Choice Healthcare Solutions, Inc. (OTCMKTS:FCHS) accumulated significant daily volume once more in Friday’s session. The ticker dropped 10% to stop at $1.15 by the bell.

So, what got traders to flock to FCHS once again, despite the company’s very thin historical volume record? Difficult to tell, frankly. The company did publish its Q1 report on May 15 and put up a PR highlighting the positives from the report on the following Monday but this means there is a full week between the moment the report going public and the new volume spike.

Here the brief version of the report’s balance sheet:

• $112 thousand in cash
• $6.1 million in current liabilities
• $2.5 million in Q1 revenues
• $30 thousand in Q1 net income

The company’s cash position shrank in half compared to December 2014. Revenues are slightly up year-over-year but perhaps more importantly, FCHS‘ bottom line for the quarter is in the black. The company logged the commendable $8.1 million in 2014 annual revenues but ended with a net loss of $2.4 million. The first quarter’s net income figure, however modest, could have triggered a positive reaction. However, during the market session following the report’s publication FCHS dropped 4%.

The report did not bring any tangible increase in volume with it and FCHS spent the majority of last week shifting under 25 thousand shares per day. The volume pop came only on Friday, without any triggers beyond the latest quarterly filing, no email pumps and no other PR coming from the company.

Looking at FCHS‘s trading history, those daily volume spikes are relatively few and those who may try to play the swings may get bogged down by low volume.