For a second time this month, ADHC announced yesterday to have signed a software development agreement with a San Diego based technology firm to create a medical mobile application platform. The share price formed yesterday a large gap up, closed the market with a doubled value at $0.0118 and surged up to $0.018 during the day. The real sensation was the trading volume, however, which reached 65.87 million shares and was the highest in the stock’s trading history.
The explanation for the huge volume are maybe the trading alerts in which ADHC stock was included yesterday. One of the promoters had previously received $20,000 from a third party for the advertising services. Otherwise, the fundamentals for such run-up are missing. The holding company has no SEC filings since 2006, but a quarter report for the three months ended October 2010 is available on the OTC markets homepage.
According to the report, ADHC has been so far doing research on new business opportunities and has no sales and no marketable products, the only thing pointing at some possible economic activity that could generate future income being the increased selling general and administrative expenses. They grew to over $429,000 from $11,200 in the same period last year.
Further, the company admits that its business has never been profitable and has lived on proceeds from the sale of stocks and loans. The current liquidity resources are maybe also adequate, given the lack of operations: $314 in cash and working capital deficiency of over $1.4 million.
