When the market closed yesterday, the stock price of Propanc Health Group Corp (OTCMKTS:PPCH) was sitting nearly 5% in the green at close to $0.02. The ticker gave some indications of hesitation as it declined from the high levels of trading session. The share price of Propanc is witnessing a strong week but will the momentum continue?
The surge in price
The share price of Propanc surged on March 10, 2014, a day after a press release touting the firm got released by the Wealthy Biotech Trader. The entity didn’t release it for free. As per the disclaimer, they received a sum of $4000 paid directly by the company for an entire month of investor relations.
Even two days ago, Propanc was mentioned by Sierra World Equity Review. As per the blog article, in the next thirty days Pfizer plans to make an offer for the acquisition of company. The investors should know that most of the posts and articles on the Sierra blog are full of baseless statements.
The red flags
The red flags associated with Propanc go well beyond the efforts to artificially bring attention on the stock. The company is trying to formulate new cancer therapies but they are at initial stages of the capital intensive and lengthy process. As a matter of fact, it has to successfully conclude a round of animal studies and use the findings to support a pre-IND meet with the U.S. FDA. Thereafter, they will be able to start with formal IND-enabling trials and move to Phase I human trials.
The latest financial report of Propanc covers the performance of the company in quarter ending December 31, 2014. The quarterly numbers were far from encouraging. The cash balance came at $14,600. The total assets were $53,000 and total current liabilities stood at $1.9 million. The revenue was nil and net loss figure was $345,000.