Anastas Gegov

DirectView Holdings Inc (OTCMKTS:DIRV) Surges On Pump And News

by Anastas Gegov September 7, 2015

After the impressive performance that we saw from DirectView Holdings Inc (OTCMKTS:DIRV, DIRV message board) in the end of April the company stock has been slowly sliding down the charts, recording short periods of rising, followed by steady descents.

 

By the beginning of this month we saw that DIRV had lost 75% of the value that it commanded at the early-May peak and this wasn’t surprising. After all, the company didn’t show very strong numbers in its latest financial reports. The latest one was filed on August 19 and covered the quarterly period ended June 30. It contained the following numbers in its balance sheet.

 

  • cash: $78 thousand
  • current assets: $251 thousand
  • current liabilities: $5.17 million
  • quarterly revenues: $73 thousand
  • quarterly net loss: $951 thousand

 

But this can only account for the most recent downward run that DIRV has experienced. Let’s not forget the massive dilution that the stock has endured in the past year. As we previously wrote, DIRV had a total of 382 MILLION outstanding shares on November 19, 2014. The company exercised a 1 for 30 REVERSE split on February 24, 2015 and we saw that the outstanding shares had grown to a massive 232 MILLION on May 20, 2015.

 

By August 7 the number of outstanding shares had grown to some 359 MILLION, so the dilution is ongoing. And it couldn’t be any other way, because quite a big chunk of the company’s liabilities are in the form of convertible notes.

 

Still, DIRV had some positive news lately. On August 20 the company announced a purchase contract for the installation of a surveillance and security system that was valued at approximately $300 thousand. Although this is a big step, however, the net loss of the second quarter of the year suggests that the company will still have a hard time turning a profit any time soon.

 

A press release from last Friday however, managed to lift investors’ spirits and we saw the ticker rise an impressive 30.56% in the final session before the weekend after it was announced that the company will present at the SeeThruEquity microcap investor conference on September 10, this year.

Unfortunately, this wasn’t the only reason for the impressive performance in last week’s final session. In Thursday we received promotional emails from pumper outlets operated by Stellar Media Group, LLC who were compensated $10 thousand to pump the company stock. And, as you all know well, things can turn pretty ugly when a stock is being pumped.

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