Pleasant Kids Inc (OTCMKTS:PLKD) Climbs Some More
An explosive Monday session flowed into a further push up the charts yesterday, as Pleasant Kids Inc (OTCMKTS:PLKD) climbed another 36% up. The stock logged very volatile intra-day movement over the last session and eventually closed at $0.09 per share.
The cause for all this excitement surrounding PLKD is a mystery. Surprisingly, there is no traceable stock pump targeting the ticker, there are no emails or Twitter hype hashtags. The lack of any official news releases from the company makes this latest violent burst up the charts even more mysterious.
PLKD last put up a proper press release months ago. It was a few months ago that it executed one of the two major events that traders should be aware of when examining the stock. In July 2015 the company peformed a massive 1-for-500 reverse split of its common stock. PLKD was sitting on 7.3 billion outstanding common shares prior to the split, which dropped that number to just 14.6 million. The company left its maximum authorized shares unaltered after the split. PLKD issued 3.8 billion of its pre-split shares at $0.00005 (four zeroes after the decimal) per share between late 2014 and March 2015.
This split came as quite a bit of a slap in the face and the aftershocks from it are visible in the first trading sessions in July.
The other important event is the August reverse merger that the company executed through a share exchange agreement with one Next Group Holdings Inc – a company based in Florida that works in the field of communications technology. It’s hard to imagine how bad Next Group’s balance sheet must be in order to not be an improvement over PLKD‘s zero cash in the bank and gross loss recorded on under a thousand dollars of quarterly revenue.
Still, while the deal’s terms are available in PLKD‘s latest quarterly, the consolidated balance sheet with Next Group’s financials is not available. The merger also took place and was announced in August, so it’s difficult to imagine investors are getting excited about it just now, so the upward chart swing is indeed a mystery. By yesterday’s closing bell PLKD was massively overbought.
