Where is Pleasant Kids Inc. (OTCMKTS:PLKD) Headed?
Pleasant Kids Inc. (OTCMKTS:PLKD) added another solid 20.00% to its market value yesterday, after another session of rabid buying, in spite of its low start.
The ticker seems to be doing rather well lately. It has had a single red session in more than two weeks – every other day has been just up and away to the top of the charts. A lot of traders are quite pleased with this rather impressive run, and while PLKD‘s ascent is obviously making people money, investors shouldn’t grow comfortable with it.
Because all the due diligence points tho the fact that said run will most likely not last much longer. There is one very simple reason for that – there is nothing substantial keeping the ticker up.
This most recent ascent seems entirely baseless – there appear to be no paid pumps targeting the company, it doesn’t have new PR or relevant filings. In short – nothing of significance seems to have happened to spark investor interest.
The company’s achievements to date certainly couldn’t have done that. As per its latest filing, it had:
- NO CASH
- current assets – $27 thousand
- current liabilities – $778 thousand
- quarterly revenues – $724 (NUMBER NOT IN THOUSANDS)
- quarterly net loss – $31 thousand
And while on the subject of obvious red flags – the company’s share structure is not in an enviable state, either. Rampant share issuance had made the stock nearly illiquid, which forced PLKD‘s management to perform a 1 for 500 reverse stock split of July 6, 2015 PLKD. As a result, the OS number was reduced to 14 million. As of September 1, 2015 PLKD‘s had already issued another 2 million shares.
In conclusion – investors should be on the lookout for the logical correction of the ticker’s direction that may well be coming any day now.
