Kaloyan Gadzhev

Platinum Studios Inc (OTC:PDOS) Drops on Significant Volume Again

by Kaloyan Gadzhev May 30, 2011
PDOS_chart.pngPlatinum Studios Inc (OTC:PDOS, PDOS message board) seems to be having some problems lately. The price of the stock of the entertainment company has suffered several dismal sessions in the past couple of weeks.

On Friday, PDOS lost nearly a quarter of its value, 24.24% to be precise. It closed at $0.025 with 3.1 million traded shares.

The drop may seem surprising to some as PDOS has released a number of positive announcements recently. Two of them concerned the licensing of the company's "Cowboys & Aliens" graphic novel.

One to a company to create games for Apple's iPhone, iPod, and iPad. The other to a Gameloft, which is to produce the video game. None of the PRs contains any details about what these licenses could mean for the company financially.

The financial side of the deals would be much more important than the simple fact of licensing for traders and shareholders. The company is in a rather dire situation according to the latest 10-Q:

  • $987,329 total current assets (only $10,462 cash)
  • $27.6 million total current liabilities
  • $525,782 revenue
  • $737,078 operating loss; $1.2 million net loss

PDOS_logo.jpgWith the company's less than healthy financials, PDOS may need to come up with something huge to get out of the slump.

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