Propanc Health Group Corp. (OTCMKTS:PPCH)’s Recovery Didn’t Last
Propanc Health Group Corp. (OTCMKTS:PPCH) managed to regain its footing and even jump for a session after announcing that it is to move up to the QB tier of the OTC Markets, but as can be seen on the charts, its gains evaporated in the span of just two sessions.
The market’s reaction to PPCH‘s current situation is understandable, and can even be called sort of predictable under the circumstances. Because it is only natural investors would see the announcement that the company’s announcement that it will be joining a more transparent section of the exchange as a positive development.
Of course said investors would get excited about the opportunity to keep a close eye on their investment… until they realize that even if PPCH started filing more detailed reports, that wouldn’t really affect its financial state.
And its financial state is grim indeed:
- Cash – $107 thousand
- Current assets – $621 thousand
- Current liabilities – $3.68 million
- Annual revenues – ZERO
- Annual net loss – $3.41 million
So at the end of the day, it’s good news that pushed the ticker up the charts this time around, but since the company is so swamped in red flags, PPCH just couldn’t stay afloat.
On the bright side, now that PPCH is to move to QB, maybe investors could keep a close eye on the toxic funding shenanigans it seems prone to, as well as any other activity that may threaten investor value.
On the not so bright side, as we’ve said before, PPCH doesn’t seem to be doing a terribly good job of creating and keeping investor value intact to begin with, which is definitely something to keep in mind.
Our advice is as always – do the necessary due diligence and go that extra mile that is necessary to ensure you know all the risks before committing to the stock of a dubious OTC Markets company.
