OSL Holdings Inc. (OTCMKTS:OSLH) Posts Impressive Gains Despite Shaky Session
Yesterday the stock of OSL Holdings Inc. (OTCMKTS:OSLH) registered its third session in a row ending in the green. The company saw more than 5.6 million of its shares, or more than 3 times higher than its average volume, getting exchanged during the trading hours. At the time of the closing bell the stock was sitting at $0.051 per share representing a gain of over 14%.
Although the outcome of the session was quite positive the stock showed a lot of hesitation. It actually opened below the previous close, recovered and surged to a high of the day of $0.054 just to fall back down again. It seems that the ticker is reaching some highly unstable price ranges despite the recently announced business plans of the company.
On November 20 the CEO of OSLH issued a letter to the shareholders in which he discussed the recent operations of the company and they indeed sound encouraging. On October 20 they successfully acquired Go Green Hydroponics, a hydroponics, indoor gardening and cultivation supply retailer that is expected to generate around $3 million in revenues for the fiscal 2014. To supplement this side of their business OSLH is also planning to launch a social media and information platform during the second quarter of 2015. More recently, on November 6, in a press release the company revealed that it plans to enter the real estate side of the industry by creating a joint venture with Alpha Equity Group.
Everything sounds rather impressive but that however cannot be said for OSLH’s financials. The latest financial report filed by the company covers the quarter ending May 31 and it contains the following numbers:
• $9910 thousand cash
• $59 thousand total current assets
• $2.1 million total current liabilities
• ZERO revenues
• $4 million net loss
In addition to the atrocious financials investors should also take into account the devastating dilution of the common stock that has been taking place.
At the start of 2013 OSLH did a 1-for-1000 reverse stock split but just twelve months later the number of outstanding shares had already reached 152 million. On September 30 a 8-K form was submitted and it showed that as of that date the outstanding shares were 306 million. OSL should file their annual report for the fiscal year ending July 31 by the end of the week and it will reveal the current state of their share structure.
In the meantime any trades involving the stock should be exercised with caution. Do your own due diligence and do not underestimate the volatility of the ticker.
In early trading today OSLH is sitting below yesterday’s close currently trading 2% in the red at $0.05.
