Dragni Dragnev

Has HDS International Corp. (OTCMKTS:HDSI) Hit Rock Bottom?

by Dragni Dragnev March 19, 2015

HDS International Corp. (OTCMKTS:HDSI, HDSI message board) took a big step into triple zero land yesterday, after crashing 18.18% in a single session.

The ticker had managed to climb up to $0.002 in the previous two sessions – but it was clear enough that even this abysmally low “high” couldn't be maintained for long. Why?

Sadly enough, one doesn't even need to do a lot of in-depth due diligence to discover a frightening number of terrible red flags that surround HDSI. Its latest 8-K declared that “Upon the issuance of 75,000,000 common shares on March 16, 2015, and the issuance of 75,000,000 common shares on March 17, 2015, the Company is deemed to have 1,665,000,000 shares of common stock outstanding.”

That's a horrifying amount of dilution, if you consider the fact that its latest quarterly, for the period ended September 30, 2014, said that its shares outstanding at the time were 377 million.

And that's not even the most disturbing fact that the quarterly reveals. Investors are advised to take a good long look at it, and duly note that the numbers given there are NOT IN THOUSANDS:

  • Cash - $163
  • Total Current Assets – 2.6 thousand
  • Total Current Liabilities - $1.3 million
  • NO REVENUE
  • Net Loss - $120 thousand

These numbers speak for themselves, and combined with the terrifying dilution statistics, they more or less explain why HDSI is sitting in obscurity in triple zero land, and why that is probably its rightful place.

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