Provision Holding Inc (OTCMKTS:PVHO) Speeds Up Its Fall
The stock of Provision Holding Inc (OTCMKTS:PVHO) has not only been unable to register even a single green session out of the last six but at the same time the daily losses have been growing bigger and bigger. Yesterday the ticker slashed nearly 18% of its price dropping to a close at $0.209 per share. Back in early April PVHO climbed to an all-time high of over 50 cents but after yesterday’s trading they are now sitting almost 60% lower.
In our articles we have often stated that the financials of the company are far better than what the majority of other pennystocks can offer. According to the latest report PVHO finished the quarter ended December 31, 2015, with:
• $2.86 million cash
• $4.58 million total current assets
• $8.36 million total current liabilities
• $2.2 million total revenues
• $600 thousand net loss
It is indeed far from a common occurrence to see a balance sheet with nearly $3 million in cash and quarterly revenues of over $2 million.
PVHO‘s expects to ramp up its sales even further – back in March the company began the manufacturing of its next batch of 310 3D Savings Center kiosks. After its completion PVHO will have produced a total of 1000 kiosks. In a PR issued on April 11 the company announced that its new 3D Savings Center platforms were now available. If everything is going so smoothly why has the stock been wiping huge chucks of its value?
It seems that there are two factors that could explain the depressing chart performance. First, since the aforementioned April 11 PR there have been no new press releases which means that PVHO have been silent for close to a month now. Then, there is the threat of a vast amount of shares seeing the light of day at discounted prices through the conversion of debt. A big reason for the sizable cash available to the company is the fact that during the second half of 2015 approximately $3.8 million in funds were raised through the sale of notes, which are convertible into common shares at a price of $0.10 per share. Not to mention that for every $1000 the owners of the notes received warrants for the purchase of 2000 shares with an exercise price of $0.15 per share.
Taking a look at the subsequent events section of the quarterly report reveals that even more convertible debt was taken on by the company – in January a $262,500 convertible note with substantially the same terms was sold by PVHO.
No matter how excited you might be about any of the various pennystock companies you shouldn’t forget that trading their stocks carries a lot of risks. That is why before committing to anything you should take the necessary time to do your own due diligence.