PV Enterprises International Inc. (OTCMKTS:VDSC) Wipes Its Gains

Last Tuesday PV Enterprises International Inc. (OTCMKTS:VDSC) made an impressive jump up the stockchart when it added nearly 60% to its value and closed the day sitting at $0.0019. Even more impressive were the 300 million shares that changed their owners resulting in a total trade value of $562 thousand. A big part in the amount of interest displayed in the ticker must have played the email alert sent out by PennyStockRumours.net.

The newsletter received no compensation for the service and was more than likely trying to improve its track record. Back in early July for the sum of $5000 they were involved in the pump campaign for Bio Solutions Corp. (OTCMKTS:BISU) who have lost more than 95% since then, dropping from a high of $0.2 to just $0.0024. 

VDSC tried to keep the momentum going by releasing two PR articles in the next days but the effort proved to be futile and at the end of Friday’s session the stock had crashed back down to $0.0013. It seems that investors have gotten used to the optimistic forward-looking statements made quite often by the company especially when the annual report for the fiscal year ending June 30 showed a rather grim picture:

• $100 cash !!!
• $926 thousand total current assets
• $6.5 million total current liabilities
• $39 thousand revenues
• $1.7 million net loss

Reading the whole report reveals that VDSC has a lot more to worry about. The company has defaulted on almost every outstanding note it has. But investors will be more interested to learn that the authorized shares according to the report were 535.5 million with 494 million issued and outstanding back in June. Five months later that number, despite the assurance of the CEO that no dilution was going to take place, has turned into 2.94 billion authorized and 1.94 billion outstanding shares.

In the same PR from last week VDSC announced that in the next six months they are going to do a share buyback in the amount of 340 million shares thus bringing the public float to around 400 million. The reason for this decision apparently is the management’s intention to become compliant with the minimum equity listing requirements for NASDAQ. We have our doubts about how realistic a possible uplisting to the national exchange really is when VDSC is barely keeping itself above triple-zero share prices.

Activity around the ticker should remain high with another PR planned to be released this week. If you don’t already have a position in VDSC it may be for the best to skip them altogether and look for an investment choice with a lot less risks involved.

On Friday another pumped company got suspended by the SEC. Sovereign Lithium Inc (OTCMKTS:SLCO) got suspended right after a paper mailer touting the company began to be distributed. Under its previous name and ticker – Great American Energy Inc (SRBL), the company was among the most heavily promoted stocks for 2013.