Todor Pichurov

Kibush Capital Corp. (OTCMKTS:DLCR) Drops After Pump

by Todor Pichurov April 9, 2015

Yesterday was a freak session for Kibush Capital Corp. (OTCMKTS:DLCR, DLCR message board). The company shifted its largest daily share volume ever, at 2.47 million shares traded. The volume action, however, brought a drop, as DCLR sank over 9% by the closing bell.

So, who is DLCR and why the sudden volume buildup? Kibush Capital Corp. is an entity that is headquartered in the office space of its legal counsel – McGee Law Firm LLC, and that office space is provided completely free of charge. A charitable move on part of the law firm, and one that suits DLCR's financial situation particularly well.

The company's latest report is a quarterly for the three months ended December 2014 and it contains the following deflating numbers:

  • $332 in cash (not in thousand)
  • $1.79 million in current liabilities
  • zero in quarterly revenues
  • $129 thousand in quarterly net loss

As a matter of fact, DLCR did not make a dime of revenues not just in this quarter but in all of fiscal 2014, or 2013. The company executed a 1-for225 reverse split in the summer of 2013. This dreary state of things could be a large part of the reason why traders barely touched DLCR in recent months. On half the trading days of the past month, DLCR registered ZERO shares traded.

To make matters worse, on Tuesday there were a bunch of pump emails sent out, touting DLCR. The disclaimers disclosed the best paid promoters bagged $20 thousand to advertise DLCR stock, paid out by an entity called Stockchat LLC. The combination of the pumps and yet another optimistic PR coming from the company yesterday morning could be the reason for the volume spike. Given DLCR's trading history over the last few months, it's not likely that yesterday's session will repeat any time soon, especially given that the pump campaign was a one-day deal.

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