Todor Pichurov

HDS International Corp. (OTCMKTS:HDSI) Wades Neck-Deep in Dilution

by Todor Pichurov March 25, 2015

Yesterday the share price of HDS International Corp. (OTCMKTS:HDSI, HDSI message board) took another massive blow. The stock sank a stone, dropping 50% by the closing bell. The reasons for the recent disastrous performance of HDSI on the charts are all in the company's filings.

HDSI was scraping the bottom at $0.0001 just a couple of weeks ago. New volume movement stirred things up shortly after this and the company found itself 1000% up within just three sessions. Now it seems HDSI is hurtling headlong back to where it used to be, giving swing traders a more than ample opportunity to make money and burning a hole in the pocket of those who treated it as a long-term investment.

The chief issue with HDSI is not that it never generated a dime of revenues since inception, seven years ago. It's not even that the company has only a hundred dollars to its name in the bank. It is the fact that the company diluted its common stock 350% within the space of four months, issuing shares at QUADRUPLE zeroes along the way.

HDSI's latest filing is an 8-K published only yesterday. It informs that on Monday the company issued 83,000,000 new common shares to extinguish debt totaling $4 thousand. This means the lender who converted their note into shares obtained the shares at $0.00005 per share. Suddenly, selling the stock of a company that has hit rock bottom at $0.0001 doesn't look so bad if you're a noteholder in HDSI – you would still be doing a neat 100% profit.

On March 16 and 17 the company issued another 150,000,000 shares, once again at $0.00005.

The latest issuance of shares brought HDSI's outstanding share count to 1.74 BILLION shares. Back in early November 2014 that number was 378 million.

Even if there are enough people willing to buy the cheap shares that noteholders dump in their lap (something that the company is forthright enough to explain in its own filings), there is no real way this can go anywhere considering the millions upon millions of shares issued at QUADRUPLE zeroes, or 50% below the rock bottom at which HDSI can trade on the open market.

Comments 2

1. Guest
March 25, 2015, 12:09PM

Quotes Grumpy poster ???

2. Guest
March 25, 2015, 09:23AM

Quotes You belong in prison you POS. You should be banned for life from posting your articles.

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