Propanc Health Group Corp (OTCMKTS:PPCH) Avoids Closing In The Red

Last week Propanc Health Group Corp (OTCMKTS:PPCH) registered a streak of 3 sessions ending in losses and when Friday’s trading began it seemed that it might suffer another drop. The stock opened the trading day at $0.0355 but quickly plunged down the chart to a low of $0.0335. Still by the time of the closing bell PPCH had managed to climb back up finishing the week 2.8% in the green at $0.0365.

The chart performance of the company has been quite disappointing lately. At the start of August the ticker spiked above $0.06 while currently it is sitting close to 40% lower. If you go further back the chart you will see that back in June when the hype around the company was at its strongest PPCH reached a high of over 13 cents. If you bought in at that moment you will currently be facing losses of 71%.

Still, some investors are still hoping that a new PR issued by the company could once more cause the stock to surge upwards. On August 13 PPCH did state that the round of pilot animal studies for their lead product, PRP, were completed and that the preparations for the next round of full scale efficacy studies are now underway. A new announcement could indeed have a positive effect but investors should also take into account the fact that PPCH‘s annual report should be filed by the end of the month. And if the numbers inside are as depressing as always it could push the stock even lower.

PPCH‘s financial state is definitely a cause for concern. As of March 31 the company had:

• $168,348 cash
• $308,816 current assets
• $2,160,595 current liabilities
• NO revenues since inception
• $454,250 net loss

The red flags run far deeper though. During the first three months of the year PPCH sold $490 thousand worth of notes that can be turned into common shares at a 45% discount. The dilution of the common stock caused by the conversion of debt has been massive with 135 million shares seeing the light of day at less $0.002 each during the quarter. PPCH did reduce their authorized amount by 80% but that still leaves them with 2 BILLION authorized shares. The annual report should provide investors with a more up-to-date picture of the company’s share structure.

PPCH demands the use of caution when dealing with their stock. The red flags are simply far too serious to be underestimated. Do your own due diligence and never put unaffordable sums of money on the line.