Propanc Health Group Corp. (OTCMKTS:PPCH) Loses Its Footing
Although Propanc Health Group Corp. (OTCMKTS:PPCH) managed to recover somewhat from yesterday’s weak start, the session’s final bell caught the ticker 8.20% down. So where will it go now?
While yesterday’s crash didn’t turn out as ugly as it looked like it was going to be in early trading, that is no reason for investors to relax just yet. PPCH‘s situation remains virtually unchanged, and while it is true that yesterday’s slide left the ticker somewhat worse for wear, it is still perched much higher than is logical or reasonable.
Investors should never forget that we’re talking about a company that showed this in its latest financial report:
- Cash – $107 thousand
- Current assets – $621 thousand
- Current liabilities – $3.68 million
- Annual revenues – ZERO
- Annual net loss – $3.41 million
Seeing as the company has quite a bit of toxic debt to go with its meager achievements to date and lack of funds, a market cap of 16 million may still be a bit high, even after this latest correction.
This should make investors extra weary, as it means that the ticker might not be done falling yet.
Naturally, this doesn’t mean that there is no money to be made from trading PPCH in the shoert run, however investors should always be aware of the possibility that some of the company’s horribly discounted convertible debt may be transformed into shares and dumped on the market at any point in time.
In order to maximize their profits, noteholders would want to do so at a moment when the stock is hot and liquid and the ticker is high up the charts – right in the middle or immediately after a significant price jump.
Investors should really keep that in mind.
