Todor Pichurov

Dial Global, Inc. (OTCMKTS:DIAL) Smacked Down on Heavy Volume

by Todor Pichurov September 3, 2013
DIAL_chart.pngOn Friday the stock of Dial Global, Inc. (OTCMKTS:DIAL, DIAL message board) went white-hot after months of low activity and frequent zero-volume days. Volatility was the order of the day as DIAL spiked sharply immediately after the open, reaching $1.00 per share. After the brief spike it was a downhill run and the price was sitting nearly 49% in the red by the closing bell.

DIAL was formerly known as Westwood One, Inc. and provides radio station programming and services, as well as content production and advertising services. Previously a NASDAQ-listed company (until late 2012), DIAL has now dropped to the status of a Pink No Information company that is stamped with the 'Stop' sign on OTCMarkets.

DIAL stock that was trading around $2.50 per share in November was smashed nearly 90% down in the same month and the company delisted from the NASDAQ. The company recorded hefty nine-digit net loss and announced recapitalization plans that were anticipated to close mid-April. DIAL's latest financial report - a yearly for 2012, states that while there have been limited waivers signed with lenders, the company expects to breach some of the credit facility provisions and suffer further negative financial consequences, should the lender parties decide to exercise their legal rights.

This air of uncertainty around the current and future condition of DIAL is further intensified by the fact that there have been no new financial reports coming through since the 10-K for 2012 and it's been a rather long while now - hence the Pink No Info status of the company.

The heavy volume on Friday was likely brought about by the announcement that Cumulus Media, Inc. (NASDAQ:CMLS) acquired DIAL for the sum of $260 million in cash, broken down to $45 million for equity and $215 million in extinguished debt. The initial excitement spike was not to last as after the surge, selling pressed DIAL back down and into a six-month low. Where the price decides to go from here remains to be seen.

0HEMP_chart.pngOther companies that made percentile splashes in Friday trading include Hemp, Inc. (OTCMKTS:HEMP) who slumped along with the entire marijuana sector after a news-driven spike that took place Thursday afternoon. Refill Energy, Inc. (OTCMKTS:REFG) gained another 27%, nearly doubling its price in three sessions.

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