Has Global Digital Solutions, Inc. (OTCMKTS:GDSI) Fallen Prey To A Dump?

Global Digital Solutions, Inc. (OTCMKTS:GDSI) managed to add a mere 5.00% to its market value, in spite of the record amount of activity it registered yesterday.

Most investors were probably expecting an altogether different outcome, after the explosive burst in the day that preceded yesterday’s slide, but this particular turn of events couldn’t have come as much of a surprise to anyone that’s done due diligence on GDSI.

What happened was that the ticker opened with a huge gap up due to the expectations that its jump would continue into Wednesday’s session as well, but the pressure of all the sales gradually pushed it down. By the time the final bell arrested its descent, it had lost all but a fraction of its intra-day gains.

However, that is to be expected. After all, the “Notes Outstanding” section of GDSI‘s latest financial report contained a ton of toxic debt, convertible at a fixed discount of 40% from the lowest price over the last 20 days prior to conversion.

As of the filing of said report, the majority of that debt was held by entities such as JMJ Financial and LG Capital Funding, neither of who are exactly known for their reluctance to make a profit by destroying investor value.

And although there is no direct evidence that a massive share dump has taken place right after GDSI‘s biggest jump in months, after yesterday’s session there could be little doubt that investor value has been crushed under the weight of severe dilution. Why?

Well, 235 MILLION shares of common stock changed their owners yesterday. Note that that number is nearly TWICE as big as the one that GDSI gave when it filed its latest report.

The figures we’ve given so far sort of speak for themselves. Since said facts point at some quite disturbing truths, investors would do well to choose to listen to them closely, draw the appropriate conclusions and be duly careful when making up their mind about GDSI. Although today’s green opening seems to suggest that today’s session will be better, GDSI investors would do well to keep their eyes peeled.