Anastas Gegov

Global Digital Soltn (OTCMKTS:GDSI) Takes Another Step Back

by Anastas Gegov October 28, 2015

After moving sideways in the middle of the year we saw the stock of Global Digital Soltn (OTCMKTS:GDSI, GDSI message board) begin to steeply descend the charts and reach double zero land. After dropping below 1 cent per share in the end of August we saw GDSI continued to slide down until it almost fell into the triple zeros.

 

After reaching a 52-week low of $0.0013 per share on September 16 we saw the ticker get a bit more stable. That was until the company announced that it will acquire Grupo Rontan Eletro Metalurgica S.A., a specialty vehicle manufacturer that has the capacity to paint around 100 cars per day.

 

The announcement launched GDSI’s stock into the sky and we saw it gain 185.71% in a single session on October 20. Since then, however, the ticker has been having a hard time to keep the value it had gained. Apart from the fact that the company is operating at a profit, the numbers contained in its balance sheet are not that impressive.

 

  • cash: $148 thousand
  • current assets: $769 thousand
  • current liabilities: $1.6 million
  • quarterly revenues: $379 thousand
  • quarterly net income: $672 thousand

 

You should also note that the net income that GDSI recorded is the result of changes in fair value of derivatives. Still, the numbers aren’t that bad either and the market cap of GDSI isn’t that big.

 

That, however, didn’t stop the ticker from taking another step back in yesterday’s trading. After gaining 10.81% in Monday’s session we saw GDSI slide 12.20% yesterday, for a close at $0.0036, while a total of 35.4 million traded shares generated $121 thousand in daily dollar volume.

 

We see that GDSI can’t find its direction in today’s trading either. The ticker is 5.56% in the green as of the writing of this article. Looking at the volatility that has been presented in the past several sessions we would advise you to do your due diligence and weigh out the risks before putting any money on the line.

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