Propanc Health Group Corp. (OTCMKTS:PPCH) Goes Green Once More
Propanc Health Group Corp. (OTCMKTS:PPCH)’s slide was broken yesterday by a 10.31% spike – but will this bounce last?
As we’ve said before, PPCH‘s situation is far from peachy. True enough, the company has some loyal supporters that are extremely eager to see it succeed, and due to its recent volatile streak it has attracted the attention of opportunistic traders as well.
Still, both groups would benefit from knowing the following facts.
Firstly, all due diligence on PPCH paints a grim picture. The company’s financial report covering Q1 of 2015 looks downright depressing:
- Cash – $168 thousand
- Current Assets – $308 thousand
- Current Liabilities – $2.1 million
- NO REVENUES
- Net Loss – $454 thousand
It may be argued that, as a development stage company, these financials are not too horrible, and that given time, the company will improve and create real value for its investors.
Unfortunately, that possibility looks rather slim, while on the other hand the threat of dilution is very real, and has already cost investors a great deal.
Suffice it to say that PPCH has issued 244 million out of its current 355 million shares outstanding in the last seven months. And that’s according to the most recent information that we have – which is six weeks old. Who knows how much more toxic dilution has been dumped on investors in that period, and how much more could flood the market at any given time, plunging PPCH to the bottom of the charts?
Long story short – as is often the case with volatile OTC Markets pinksheets, it is currently unclear whether PPCH will continue upwards, or even retain its gains – but the bleak picture its financials paint show that the very opposite is more likely.
