Seeing how DSCR last put out a news release in early December and the market didn't really care about it, the volume and price hike in the first sessions of January can be attributed to the general hype micro seizure that took place across the marijuana sector of the OTC. DCSR managed to get in on that and the stock put on a good 40%.
The short green streak took place just as DSCR had slipped to its 3-month low of $0.0012 per share. The company's last announcement concerned its industrial hemp crop and the progress of harvest operations. This came on December 3 so it can in no way be connected to the latest volume shuffle and price action. A more likely scenario is that enough people decided to sell after the price bump. DSCR's latest financial report gives investors little reasons for excitement. Here is what the company reported as of June 2014:
- $367 in cash
- $1,367 in total assets
- $480 thousand in current liabilities
- ZERO revenues since inception in 2005
- $105 thousand in quarterly net loss
Those abysmal figures should be updated tomorrow, with the company's annual report. DSCR filed for an two-week extension as it was granted until Jan 13 to submit its due report.
The company has retired some 1 billion of its common shares in the 9 months ended Sep 2014, yet it still had 1.6 billion shares outstanding back in June 2014. 670 million of those were issued to clear just $227 thousand worth of debt, setting the share price at triple zeroes.
Assuming the company kept issuing new shares at that pace and at those prices over the last quarter of 2014, investors may want to exercise extra caution when looking at DSCR.