GLOBAL DIGITAL SOLTN (OTCMKTS:GDSI) Gets a Surprise Pop

After slowly deflating over the course of the last couple of months, in yesterday’s session Global Digital Solutions Inc (OTCMKTS:GDSI) broke its latest red streak and closed 46% up. Volume was heavy at over 57 million shares traded over the course of the session.

GDSI has been on a most painful chart excursion in 2015. After trading at over $0.10 per share in the spring, the stock managed the impressive feat of dropping to the bottom end of double zeroes in recent sessions. Over the last couple of months alone, GDSI crashed over 95%, slipping from five cents per share in early August to its latest close at $0.0019.

The company last published any news on Aug 24 and on that date the stock closed just 2% up. That close, however, was sandwiched between two massive drops of 35% and 27%. As a matter of fact, GDSI is one of the most volatile stocks on the OTC. Within the past month, GDSI logged just six sessions that were not a double-digit swing in either direction.

However, the overall direction the stock has been moving in for months is, quite obviously, down. Here is what the latest report published by GDSI contained:

• $147 thousand in cash
• $1.59 million in current liabilities
• $379 thousand in revenues for Jan-Jun 2015
• $2.0 million in net loss for Jan-Jun 2015

Those figures can in part explain the slide on GDSI‘s chart. Another reason for it could be the Notes Payable section of the report, which contains a number of convertibles with juicy, fixed 40% discounts from the lowest price over the last 20 days prior to conversion. Among the noteholders are notorious toxic financiers such as JMJ Financial and LG Capital Funding.

With no apparent external reason for the 46% pop in the absence of new filings or news, it’s likely that GDSI reversed after becoming oversold. How the price fares and whether GDSI can bounce off the bottom end of double zero prices remains to be seen.