Pleasant Kids Inc (OTCMKTS:PLKD) Moves Up for No Reason

In yesterday’s session the stock price of Pleasant Kids Inc (OTCMKTS:PLKD) soared 88% up the charts for no good reason. By the closing bell the price stopped at $0.066 per share, with PLKD shifting its heaviest volume for the past three months.

There was no observable reason for the massive green move. The company has not published any press releases for months, there is no indication of any stock promotion conducted through emails or through the increasingly fashionable venue of a Twitter pump.

PLKD was formerly a children’s alkalized water business, without a single penny in the bank as of June 30, 2015 and seemingly selling its products below cost, with gross loss logged in its last reported quarter, on its $724 dollars of Q2 revenues.

After pumping out 3.8 BILLION shares at $0.00005 apiece (four zeroes after the decimal) between Oct 2014 and Mar 2015, the company executed a massive 1-for-500 reverse stock split in mid-2015. The July spasm on the chart is the response to the decision to do a huge RS without altering the max authorized shares in any way. The company was left with 14.6 million post-split common shares.

In August PLKD executed a share exchange reverse merger deal with a certain Next Group Holdings Inc – a Florida company dealing in communications technology. Sadly, there is still no consolidated balance sheet containing Next Group’s financial performance, so any excitement stemming from this deal is based on expectations and not actual official filings.

PLKD was trading at under two cents just last week and it has now become pretty heavily overbought so caution is advisable.