Propanc Health Group Corp. (OTCMKTS:PPCH) Gets Demolished
Propanc Health Group Corp. (OTCMKTS:PPCH) managed to lose 26% of its market value so far in this week alone – and by the look of things, today’s trading session may take it deeper into the red.
Yesterday brought yet PPCH enthusiasts yet another disappointment, as the ticker slid another 7% down the charts. Still, such a turn of events shouldn’t come as much of a surprise, seeing as how this is the direction the ticker has been unable to resist for some time.
True, PPCH managed a sizable bounce last Friday – but it was clear to anyone that has done any due diligence on the company that said jump wouldn’t last. It was caused by a piece of optimistic PR – and we all know how said jumps tend to turn ugly as soon as the hype is gone.
It is a well known fact that hype has the tendency to dissipate very very quickly on the OTC Markets. The company in question must be formidable indeed to be able to retain the gains that such a sudden burst in volatility afforded.
A single glance at PPCH‘s latest financial report quickly determines that this particular company couldn’t exactly be called formidable:
- Cash – $168 thousand
- Current Assets – $308 thousand
- Current Liabilities – $2.1 million
- NO REVENUES
- Net Loss – $454 thousand
In fact, the very opposite seems to be true. Add the fact that 244 million out of the 355 million PPCH‘s shares outstanding have been issued in the last seven months – and the danger of dilution still looms over investor value.
This is more or less the reason why the ticker is currently doing what every other dubious, over-hyped, over-bought OTC Markets ticker does when it loses its thunder. It crashes, and it will probably continue to do so until something about PPCH changes dramatically.
