The latest press release issued by HDS International Corp. (PINK:HDSI) on Sept. 2, concerned the acquisition of new technologies under an exclusive license agreement with Hillwinds Energy Development Corp.
The announcement seemed to have a positive effect at first as HDSI opened the session with a gap up above $0.30. However, by the end of the session the price took a turn for the worse and closed for a loss.[BANNER]
Yesterday, the same announcement was published on PR-USA.net, and this time the loss came much faster. At the end of the session HDSI closed down 9.81% at $0.216 with a little short of 12 million shares changing hands.
While the acquisition of the technologies is a positive development in HDSI situation, the market’s reaction could be justified. Hillwinds Energy Development Corp. is controlled by the company’s officers. There are no details about the consideration paid for the assets, as it was “deemed immaterial”.
The announcements demonstrate some effort on part of the management to keep shareholders informed, however, there is still no clarity about the financial situation at HDSI.
The PRs have some short-term effect on the trading of HDSI since the volume gets HDSI some exposure in newsletter alerts. This doesn’t seem to be enough for a more serious move at this point, however.
