Borislav Tonev

HDS International Corp (OTCMKTS:HDSI) Flies Away from Rock Bottom

by Borislav Tonev November 9, 2015

HDS International Corp (OTCMKTS:HDSI, HDSI message board) found itself on something of a roll at the end of last week. The volume was laughably small on Thursday, but it did manage to push the ticker from $0.0001 to $0.0002 per share. On Friday, however, trading was much more exciting and after another 100% jump, the stock ended the week with a price of $0.0004 per share – the highest close in just under five months.

At $135 thousand, the dollar volume is pretty substantial as well, but unfortunately, there's not much to suggest that HDSI deserves the attention. In fact, mere minutes after you start your research, you'll see that two very important things are missing – a functioning website and up-to-date financial information. The company's internet presence has been all but non-existent for quite a while and the management team seem to be showing no interest in solving the issue.

As for the filings, HDSI did publish their report for the first quarter of the year with a small delay. It looks like this:

  • total assets: $515 (number not in thousands)
  • current liabilities: $138,053
  • NO revenue
  • quarterly net loss: $129,713

In August, when the report for the second quarter was supposed to come out, HDSI said that they need some more time and announced that the 10-Q will be filed within the fifteen-day extension period. Then, they failed to meet the new deadline and the statement is still missing which means that the company profile is now adorned with a yield sign.

A few weeks prior to the notification of late filing, HDSI also announced that they are raising the number of authorized shares from 2 billion to 10 billion, but according to Nevada's Secretary of State, they have failed to keep that promise as well. Even without the increased authorized count, the share structure, with the 1.8 billion shares issued and outstanding, is still pretty poor in light of the appalling financial results.

Basically, at this point, HDSI can give you absolutely no reasons why you should invest in their stock. That's why CMG Holdings Group Inc (OTCMKTS:CMGO) took care of this for them.

On Friday, CMGO issued a press release and announced that they will spin off Good Gaming, one of their subsidiaries. After that, they'll merge it into HDSI so that it can enjoy the benefits of being a stand-alone public entity.

HDSI's previous business will be abandoned and thanks to a new name, ticker symbol, and management team, it will be turned into a completely different company. Apparently, investors reckon that this is the way forward, but is it really?

The long-suffering shareholders should find out in a few months' time. We won't be holding our breath, though. Unlike HDSI, CMGO are current with their reporting obligations and thankfully, the company's accountants have broken down the operations into segments. Thanks to this, we know that during Q2, Good Gaming Inc registered just over $62 thousand in revenues and only $15 thousand in operating profit. Not really the mesmerizing results some people are expecting, you have to agree.

Comments 1

1. Guest
April 01, 2016, 07:59PM

Quotes egaming! What a great idea. put a pot of gold out to the winner and watch the kids line up....this company will be hugh soon.....

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