Will Provision Holding Inc (OTCMKTS:PVHO)’s Retain its Gains?
Judging by today’s red opening, Provision Holding Inc (OTCMKTS:PVHO) might just be on its way back back down – so what are the odds of it retaining its ground?
Well, considering the fact that the ticker’s jump was only made possible due to a wave of hype-fueled buying caused by the PVHO‘s own press release that hit the web before yesterday’s trading session, we’d have to say that the odds are not great. Under normal circumstances, hype tends to dissipate quickly on the OTC Markets, and once it does, all the shortcomings of the company in question tend to quickly rear their ugly heads and drag the ticker back down once more.
This is especially true in the case of companies that have yet to produce substantial commercial results, and judging by PVHO‘s latest 10-Q, it looks like this is exactly the category it falls into:
- cash – $2.01 million
- current assets – $3.97 million
- current liabilities – $7.97 million
- quarterly revenues – $2.02 million
- quarterly net loss – $913 thousand
Then there’s the issue with all of the company’s convertible note shenanigans.
A bit of due diligence ascertains that in 2015, PVHO issued convertible notes totaling $4.1 million that could be transformed into shares of its common stock at prices of a dime per share. In April PVHO already issued 4.3 million shares as result of such conversions. At its zenith yesterday, the company’s common stock was worth a third of a dollar.
Once all of those factors are taken into consideration, it shouldn’t be all that difficult to see the possible reasons for the ticker returning to the bottom of the charts.
