Stock Outlaws Examine DMH International Inc (OTC:DMHI)

The advance in medicine has been one of the greatest challenges we have ever faced. Although we’ve come a long way, there’s still room for medical improvement and that’s what DMH International Inc (OTC:DMHI) are aiming for.

DMHI recently acquired a new subsidiary. It’s called Touch Medical Solutions and they plan on developing a new type of clever software that is supposed to make experience in the hospital a lot shorter and a lot more pleasant. This is all well and good, but are DMHI ready to start marketing the clever programs and, most importantly, are the applications ready to be sold?

Well, we can’t be sure. The main problem is that the acquisition of Touch Medical took place somewhere around December and DMHI have not filed a financial report since November – the one covering the third quarter of 2012. Recently, they announced that they will be late with the new statement and if they really want to attract new investors, they better get a move on.

Still, we decided to check the latest report just to see how much they are going to contribute to the development of the software. Judging by the figures, it won’t be that much. Here’s a recap of the most important financials:

• current assets: $14 thousand in cash
• current liabilities: $222 thousand
• no revenue since inception
• net loss: $17 thousand
• accumulated deficit: $253 thousand

In addition to the rather sorry-looking financial statement we can say that DMHI have never been in the medical business and they have never developed any sort of software. As we all know, lack of experience is quite a disadvantage in these fields, but they say that their new President, Mr. Rik Deitsch has medical background and that he knows what he’s doing.

Sure enough, a brief research shows that he is indeed the CEO of another company dealing in roughly the same sector – Nutra Pharma Corp. (PINK:NPHC). In there Mr. Deitsch is in charge of a highly trained team of professionals who are developing a cure for cancer. Or are they? Well, the chart on the right shows that their shares have been going down steadily over the years and their latest financial statement tells us that they have no cash, an accumulated deficit amounting to $35 million and miniscule revenues.

Read further down and you will see that there have been a number of legal proceedings both against Mr. Deitsch and NPHC, including a petition of bankruptcy filed against them by former employees. Will Mr. Deitsch drag DMHI into a similar hole? Only time will tell, but it’s worth keeping in mind that it has happened before. You should also take a look at the paid promotions that were carried out for NPHC back in April 2011 and in October 2012. As the chart shows, NPHC didn’t really fair all that well after the hype had subsided.

Since we mentioned promotions, we can’t ignore today’s pumpers for DMHI – Stock Outlaws. They were also part of touting effort around Nano Labs Corp. (OTC:CTLE) back in November 2012. The chart on the right shows that the pump didn’t end well.

All in all, we would advise you to be extremely careful when making your decision on DMHI, at least until a fresh financial statement comes out.