In last trading session, HDS International Corp (OTCMKTS:HDSI) managed to post a green closing, and moreover the gains were strong. The stock price surged more than 166% to close at $0.00080 with massive share volume of 316.20 million compared to average volume of 124.76 million.
The change in trend
With the strong gains in last trading session, HDS International has managed to erase a major part of losses recorded in past few weeks. The company has been facing severe problems of dilution. Last week, the stock declined more than 50% to trade below $0.00025. It even went to touch the levels of $0.0001 just few weeks ago. However, then volume surged up and the company posted gains of more than 1000% in just three trading sessions. If the stock momentum is analyzed, it is offering plenty of opportunities to swing traders to make money and create a hole in the pocket of those investors who opted for the company’s shares for long-term investment.
The main problem with HDS International is not linked with the financial performance of the company. It is not about the cash position or the revenue generation, but it is linked with the share dilution. HDS International diluted its common stock 350% within four months, issuing stock at a price of quadruple zeroes along the way.
HDS International latest filing is an 8-K released couple of weeks ago. It stated that the company issued 83 million new common shares to settle debt amounting to $4,000. This implies the lender who converted ‘Note’ into shares received the shares at price of just $0.00005 a share. The price certainly makes a good selling price of the stock that has made bottom of $0.0001 recently. On March 16 and March 17, 2015 HDS International issued another 1.50 billion shares, once again at a price of $0.00005.