Propanc Health Group Corp. (OTCMKTS:PPCH) Is On Its Way Up

Propanc Health Group Corp. (OTCMKTS:PPCH) managed to add more than 20% to its market value in two consecutive sessions – but how long can it keep this up?

Well since we’re dealing with an OTC Markets company, there is no way to be sure where it will head from here on out. However, there are some details that should be taken into account in order for a prediction about its future direction to be an educated guess, and not a blind gamble.

One such detail is the fact that the company has a note that is “convertible into common stock at the lower of (i) $0.0346; or (ii) a twenty percent (20%) discount to the average of the two lowest closing prices of the common stock in the five trading days prior to the date of conversion”.

PPCH‘s current inflated state presents a perfect opportunity for noteholders to make a quick buck. And even if they don’t do so today, the threat will remain and only get worse the higher up PPCH climbs, until said debt is cleared.

Another dead giveaway that PPCH may be headed for a correction is the fact that is market cap is currently $15 MILLION. That may be a bit too much for a company whose latest 10-K for the period ended June 30, 2015 looked like this:

  • Cash – $107 thousand
  • Current assets – $621 thousand
  • Current liabilities – $3.68 million
  • Annual revenues – ZERO
  • Annual net loss – $3.41 million

Long story short – PPCH may have had two good sessions, but investors would do well to keep an ear on the ground, as its charts may turn an ugly shade of red any moment now.

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