Is Propanc Health Group Corp. (OTCMKTS:PPCH) Going To Turn The Tide?
Propanc Health Group Corp. (OTCMKTS:PPCH) managed to ascend an impressive 22.90% yesterday – but will that state of developments last?
It would probably be fair to say that the company’s last ascent was pretty much baseless – the ticker only rose as high as it did because of PR hype – so it was only natural that it would fall as soon as that hype dissipated.
Well, now that it is rising again for no apparent reason, the words “dead cat bounce” can’t help but come to mind. And with financials such as these, it’s difficult not to compare the ticker to the proverbial deceased feline:
- Cash – $14 thousand
- Total assets – $53 thousand
- Total current liabilities – $1.9 million
- NO REVENUES
- Quarterly net loss – $345 thousand
The worst part is that the meager assets and debt isn’t even the company’s biggest fault. Dilution is. Why?
Over the span of a couple of months – from Oct. 14 2014 to Feb. 17, 2015 – PPCH‘s total number of common shares outstanding has increased from 82 million all the way to 191 million. To add insult to injury, most of the new shares were issued to insiders at prices as low as $0.0025.
With all of this in mind, it should be clear why it won’t really be all that surprising to see PPCH resume its plummet after yesterday’s instant recovery.
