Provision Holding Inc (OTCMKTS:PVHO) Suffers A Correction
Provision Holding Inc (OTCMKTS:PVHO) had a great run in the beginning of the year which managed to provide the company stock with a lot of value over the next couple of months. Since April, however, PVHO has been experiencing trouble retaining the value that it had previously gained.
Last week we saw PVHO record a couple of optimistic sessions after issuing some press releases and this wasn’t very surprising, considering the rather small market cap that the company has, compared to other OTC entities that have far less to show in their balance sheet.
- cash: $2.01 million
- current assets: $3.97 million
- current liabilities: $7.97 million
- quarterly revenues: $2.02 million
- quarterly net loss: $913 thousand
Although these numbers are fairly decent PVHO still has some red flags. The company has picked up quite a lot of convertible debt that can be turned into shares at discounted prices, which is always something that you should take into considerations.
This might be one of the reasons for which PVHO was quick to correct and drop 15.11% in Friday’s sessions, finishing the week with a price of $0.26. We also saw the volumes drop, so heavy trading wasn’t the reason for the slip. A total of 1.39 million shares changed their owners, generating $378 thousand in daily trade value.
We see that PVHO is attempting a recovery after an optimistic press release was issued earlier today. Still, that doesn’t mean that you should skip doing your due diligence and weighing out the risks before putting any money on the line.
