Propanc Health Group Corp. (OTCMKTS:PPCH)‘s Recovery Didn’t Last
On Friday Propanc Health Group Corp. (OTCMKTS:PPCH) finally managed to regain some of the ground it had lost during the previous trading sessions. Unfortunately, it does look like its upward momentum may not have carried into the new week, in spite of the ticker’s green start in today’s early trading.
This turn of events may appear a bit odd, since at first it looked like PPCH could have taken a serious step forward today, fueled by the positive announcement it put forward just minutes ago.
Admittedly, the company submitting a clinical trial application in the UK is a big deal, but this is where the tricky part comes in. The PR said that this is to be done “early 2017” – which could be anything from 8 to 12 months away from the current point in time.
With this in mind, the news becomes significantly less relevant – which, in turn explains why it didn’t afford the ticker more of a respite.
Then again, few things could really have done that for a ticker that’s as severely overbought as PPCH. What do we mean?
Well, as we’ve mentioned before, PPCH is certainly not the worst company on the OTC Markets medical and pharmaceutical scene. However, even after getting the metaphorical rug pulled out from its feet, the company is still worth about $17 MILLION. True, PPCH does show some promise – but that doesn’t make such a high market cap reasonable, when the company’s actual state, at the present time, looks more like this:
- Cash – $1.1 million
- Current assets – $1.5 million
- Current liabilities – $4.8 million
- Quarterly net loss – $3.5 million
That’s uninspiring even before you take into consideration all the stock-related issues that the company has. This inconsistency is the most probable cause of the ticker’s current slide towards the penny mark. Will PPCH reach it this time? Only time will tell.
