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Why Data Storage Corp (OTCMKTS:DTST) Closed In Deep Red?

At a first look, investing in Data Storage Corp (OTCMKTS:DTST) doesn’t appear like such a bad idea. It has its operations in one of the most lucrative and booming industry that is none other than IT. It has been around in the industry for a while and has been reporting revenues of over $1 million per quarter from last two years. The balance sheet doesn’t look perfect but is not as bad as the ones that are reflected by some of other its OTC counterparts.

The performance

Data Storage reduced its operating expenses in the last quarter. It indicates that company is moving closer to profitability. Moreover, it has numerous agreements and contracts with some of the serious players in the sector. The problem is in OTC market, a running business and a solid balance sheet aren’t always enough to support a consistent stock performance. The share price of Data Storage posted impressive gains in January. However, the excitement didn’t last long, and gradually volumes dried up in the second half of January.

The decline

The share price of Data Storage witnessed another active session on Friday. DTST opened the day with a massive gap down and never regained its ground in the entire trading session. The ticker touched an intraday low of $0.04. It declined more than 24% to close the day at $0.0550, with almost 1.03 million shares traded for the day.

The future ahead

Data Storage Corp (OTCMKTS:DTST) performance might become more consistent in the future. The surge in its share price few days ago was a direct result of the series of promotional emails that made a place in investors’ inboxes. Almost sixteen alerts were sent by a number of pumpers, and all of them claimed that they had not been paid. The investors need to practice due diligence, given the terrible stock performance in the past.

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