DirectView Holdings, Inc. (OTCMKTS:DIRV) Deflates
It has been an emotional couple of weeks for DirectView Holdings, Inc. (OTCMKTS:DIRV) shareholders. They got to watch their investment shoot up spectacularly after the company latched itself onto the wave of excitement about wearable body cameras, amidst the nation-wide debate on whether all policemen should wear one. After yesterday’s session, DIRV is still well above its price levels prior to May 2015 but equally far from its most recent highs as well.
Yesterday the company slid 28% down the charts, logging above-average volume of nearly 24 million shares traded. The slip came in the wake of the news release that pushed the stock up in the previous session.
DIRV announced a joint project with NASDAQ-traded xG Technology, Inc. (NASDAQ:XGTI) to produce a new body camera. This is what pushed DIRV into far greater liquidity in May in the first place. On Wednesday the company announced an ABC News affiliate channel covered the body camera project in a short news segment.
Everything was almost perfectly aligned – an OTC stock that was quietly bubbling in sub-penny land for a while, an agreement with a NASDAQ-traded entity, media exposure on TV! So, what then could be holding DIRV back?
For one, there’s the company’s own underwhelming reports. Here is what DIRV had to show as of its last annual report:
- $13 thousand in cash
- $84 thousand in total assets
- $4.7 million in total liabilities
- $0.51 million in annual 2014 revenues
- $1.23 million in annual 2014 net loss
The addition of another $115 thousand in convertible debt that can turn into common stock at a 30% discount from the lowest traded price 30 days prior to conversion is not helping investor confidence either.
XGTI on the other hand is going through at the second half of its grace period before it gets delisted from the NASDAQ. The company slipped under the $1 minimum bid price and has been given until August 2015 to fix that. As of its latest close XGTI commanded a market cap of 12.5 million dollars.
DIRV also did a 1-for-30 reverse split of its common stock back in early 2015.
