Pumpers Have Some Doubts About DMH International Inc (OTC:DMHI)
Yesterday, a couple of promotional letters arrived at our database with the sole intention of convincing us how bright the future is for DMH International (OTC:DMHI). Sure enough, we couldn’t just let them slip by and we checked to see how much truth can be found in these claims.
We did a thorough research and we concluded that DMHI lacks the most important factors for success. The state of their financials is the most convincing one:
- cash: $14 thousand
- no other assets
- current liabilities: $222 thousand
- no revenue since inception
- net loss: $17 thousand
- accumulated deficit: $253 thousand
Nevertheless, the news around DMHI sound all bright and optimistic. They said that they have recently acquired a company called Touch Medical Solutions and that they are now developing a new sort of clinical software that is supposed to make both the doctors’ and the patients’ lives a whole lot easier. Investment decisions are not based on optimistic press-releases and forward-looking statements, though, and we continued the research.
We found that DMHI have not managed to consolidate their financial statements with Touch Medical yet, which means that, realistically speaking, the figures in the latest 10-Q covering the third quarter of 2012 are not quite as up-to-date as we would have hoped.
Indeed, it does take time to make a full review of the financials of the two companies, but could there be something that DMHI want to hide from us?
Well, as we mentioned yesterday, the past of DMHI‘s president and CEO, Mr. Rik Deitsch, has been… eventful. He was (and still is) the CEO of another company called Nutra Pharma Corp. (PINK:NPHC). We checked on that business venture as well and we saw that it has some woeful financials, as well as a history of promotions that ended in disaster. We feared that history might repeat itself and, unfortunately, it did.
Despite all the “breakout and bounce alerts” from the pumpers’ emails, DMHI lost a shocking 72% of its value and as of the time of writing, the ticker is down another 13%.
The pumpers had a pang of conscience, apparently and one of Penny Stock General’s affiliate newsletters, Penny Stock Peepshow, sent out a sort of apology letter in which they take responsibility. Apart from the fact that the apology email won’t give their subscribers their money back, Penny Stock General should have known better. They should have found out that the company CEO is at the helm of another publicly traded company that is on the verge of bankruptcy. They should have also known that he was part of a number of lawsuits with virtually every company that he was part of. We checked out Mr. Deitsch’s LinkedIn profile and we found that he has kindly provided a CV, of sorts, in which he lists all the companies that he has been a part of. A few Google searches reveal that nearly all of the ventures were part of legal proceedings and there have been some serious allegations against Mr. Deistch, himself. One of which is about a securities fraud back in 1998 when he was a Director at Rexall Sundown, Inc.
We will leave it up to you to draw the conclusions, however, we would like to advise you to be extremely careful when making your decision. If you haven’t already, that is.
