How High Will Propanc Health Group Corp. (OTCMKTS:PPCH) Climb?
Propanc Health Group Corp. (OTCMKTS:PPCH) made an amazing 21.35% jump on a record volume yesterday, and by the look of today’s green opening, the ticker may well be poised for another rise today.
This latest ascent was made possible by WealthyVentureCapitalist.com’s declaration that PPCH has what it takes to be the next Advaxis (NASDAQ: ADXS). Evidently, many investors believed that it really is – but should they have known better?
Probably. It is common knowledge that the praise heaped on OTC Markets Pinksheets companies is to be taken with a grain of salt – especially if the company in question’s balance sheets look like this:
- Cash – $168 thousand
- Current Assets – $308 thosuand
- Current Liabilities – $2.1 million
- NO REVENUES
- Net Loss – $454 thousand
PPCH doesn’t seem to have been too successful in creating investor value on that front. However, as horrendous as the company’s financials may be, PPCH‘s share structure still manages to outdo them in sheer grimness. How?
Let’s look at a brief summary of its status over the last couple of months, shall we?
- as of November 19, 2014 PPCH had 91 shares of common stock
- as of February 16, 2015 PPCH had 192 million shares of common stock
- as of May 15, 2015. PPCH had 335 million shares of common stock
Most of that horrifying flood of dilution came from convertible notes with conversion provisions that could be called toxic at the very best.
Investors should take all these facts into consideration, before loading up on PPCH shares just because someone said a good word about the company. Failing to do so may well have horrible results – and sooner rather than later.
