Dragni Dragnev

Dakota Plains Holdings, Inc. (OTCMKTS:DAKP) Drops To The Pinksheets

by Dragni Dragnev July 6, 2016

Dakota Plains Holdings, Inc. (OTCMKTS:DAKP, DAKP message board) got de-listed from the NYSE two sessions ago – and it shows on the charts.

The ticker has dropped all the way from $0.11 to $0.5 in just two sessions, and although yesterday's 23.08% crash wasn't as horrendous as the one that preceded it, it doesn't really seem like the ticker's downward momentum is dissipating.

Truth be told it is no surprise to see DAKP return to the OTC Markets. After all, its balance sheets have been looking like those of an OTC Markets company for quite a while:

  • Cash and Cash Equivalents - $1.9 million
  • Total Current Assets - $9.1 million
  • Total Assets - $64.6 million
  • Total Revenues - $3.3 million
  • Net Income - $210 thousand

At first glance, it those financials look like they belong on the OTCQB tier – just breaking even. That is the case, until you take into account the OTHER part of its filings:

  • Total Current Liabilities - $35.6 MILLION
  • Total Liabilities - $91 MILLION

All in all, it's no wonder that, as reported by Fiscal Standard, “analysts working for various investment brokerages have changed their ratings and price targets” - although admittedly, a market cap of under $3 million may be a bit low for a functioning entity that even manages to keep its head over the water.

Then again, DAKP does have “$25.9 million aggregate principal amount of promissory notes due within the next twelve months”, and that sort of thing can certainly prove problematic when a company gets de-listed from a higher exchange. Investors should really take that into consideration when eyeing DAKP stock.

 

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