Dragni Dragnev

Global Digital Solutions Inc. (OTCMKTS:GDSI) Gets Back On Track

by Dragni Dragnev April 11, 2016

Global Digital Solutions Inc. (OTCMKTS:GDSI, GDSI message board) had another 17.05% jump on Friday – but will it be able to retain its elevate chart position?

One thing is certain – this latest peak in investor interest that brought the ticker as high as it currently is was due to recent developments surrounding GDSI's October 13 Share Purchase and Sale Agreement. There were issues with that particular deal, but now that said problems are nearing their resolution, investors have every reason to cheer. Or do they?

While resolving past issues is certainly commendable, one must remember that GDSI's shortcomings are in no way limited to the difficulties it has had with making the SPSA come to fruition.

No, as we have mentioned on multiple occasions before, the company's overall financial state and commercial achievements to date are far from impressive:

  • Cash - $115 thousand
  • Current assets - $570 thousand total
  • Current Liabilities - $1.4 million
  • Quarterly Revenues - $254 thousand
  • Quarterly Net Loss - $935 thousand

Those numbers can be called unimpressive at best – and the idleness that they hint at is the least of the pitfalls that threaten GDSI investor value.

No, there is plenty more where those red flags came from. For instance, the company's shares outstanding have increased from 112 million to 489 million between August 4, 2015 and November 4, 2015.

That state of developments sort of speaks for itself – and so does the fact that there's a fair to good chance that GDSI has more toxic notes that convert into shares of the company's common stock at a 40% discount.

What's worse is that since the company delayed its annual report, there's really no telling how much more stock it has issued in recent months, or how many more toxic notes it has outstanding.

Investors should really take all those factors into account when considering whether GDSI has a better chance to crash or jump.

Comments 1

1. Guest
April 11, 2016, 11:01AM

Quotes Please update GDSI article for April 11, 2016 actually reporting the -70% drop today, Thank you.

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