Pleasant Kids, Inc. (OTCMKTS:PLKD) Stops Its Ascent

After sitting at the absolute rock bottom of $0.0001 for over a month the stock of Pleasant Kids, Inc. (OTCMKTS:PLKD) has finally been able to take a breath of fresh air. Last Thursday it more than doubled its share price by closing the session with a gain of 110% at $0.0004 while on the very next day it added another 50% to its value and reached $0.0006.

It seems that during the weekend the positive momentum lost quite a bit of its strength though and when trading opened yesterday the ticker displayed a rather volatile performance. It opened at $0.0007 and for a brief moment touched on $0.0008 just to fall back down to a low of the day of $0.00039. Still, when the closing bell rang PLKD had managed to return to $0.0006. Was yesterday’s session just a healthy consolidation or is it signaling a possible correction?

Well, if the last financial report filed by PLKD is anything to go by the company is in a rather grim position. At the end of June they had:

• $100 cash
• $37 thousand current assets
• $2.2 million current liabilities
• ZERO revenues
• $67 thousand operating loss

Although these numbers are already atrocious enough the picture gets even worse when you factor in the crushing dilution of PLKD’s commons stock.

For the nine month period ending June 30 2.1 billion shares had been issued as a conversion of just $455 thousand in debt. In July another 516 million shares saw the light of day as a conversion of less than $100 thousand in debt. As whole the average price of each share stands at approximately $0.0002. Some of the entities that got these shares are among the most notorious toxic funders operating in the world of pennystocks – Asher Enterprises, Redwood Management, JMJ Financial.

There might be a light at the end of the tunnel though. On September 3 a Schedule 13G statement was filed and it showed that Asher now owned zero shares. The last couple of PRs by PLKD have also given investors a reason to be optimistic. A buy-back program is scheduled to begin next month and it should run through the end of 2015. In addition, the number of authorized shares was also cut in half from 10 billion to 5 billion.

On December 15 the company should launch its apple juice product and investors are anticipating another major announcement by the end of the month. PLKD might be showing some encouraging signs but you should keep in mind that there are billions of shares that could be dumped on the market. Not to mention that with its limited resources the company could be forced to once again take on more convertible debt.