Propanc Health Group Corp. (OTCMKTS:PPCH) Can’t Retain Ground
Propanc Health Group Corp. (OTCMKTS:PPCH) managed to regain some ground near last week’s end after making yet another positive announcement, but unfortunately lost all momentum during the weekend and crashed right back down immediately on Monday.
Investors were stirred into action when they read that “positive signals have emerged in several pilot animal studies”. Indeed, the news was good, and probably warranted a reaction – however it was clear from the start that any significant gain would be lost almost immediately after the jump. Why?
Because there are just too many factors pulling PPCH down.
The occasional wave of hype may be enough to stir things up, but at the end of the day, everything else about PPCH of mediocrity. For instance, its latest financial report showed the following dreadful numbers:
- Cash – $168 thousand
- Current Assets – $308 thousand
- Current Liabilities – $2.1 million
- NO REVENUES
- Net Loss – $454 thousand
However, as unimpressive those financials may be, they are probably not the only reason PPCH crashes after every jump.
The fact that 244 million out of the 355 million PPCH‘s shares outstanding have been issued in the last seven months or so speaks of monstrous amounts of toxic dilution taking place and smothering investor value on a regular basis.
Of course, there is no real way to know whether each subsequent crash that follows a hype jump is caused by noteholders converting toxic debt and dumping cheap shares on the market. Still, at this point, this seems like a plausible explanation – which is why investors must be extra careful when dealing with PPCH.
