Another promotion is on the way for YesDTC Holdings Inc.(OTC:YESD), which might inspire traders for a second shock in the traded volumes this week. This time, however, the promotion is paid, and it is paid also with shares of the company. In fact, what the promotion includes is the company announcement from last Thursday, which transformed into millions of shares exchanging hands this Monday. It covers the new partnership of the company for the exclusive distribution rights for nutraceutical supplement products. 
Now, YesDTC Holdings is a direct-to-consumer marketer, so it is only natural that investors appreciate it when the company adds more products to its portfolio. After all, this should result in more revenues. It is also a new player on the market, founded in 2009, so the financial statements of this year are also not the best way to assess how the company is performing. There are other facts though that an investor should consider. According to its last 10-Q report, the company is authorized to issue 900 million shares of common stock. The current number of shares outstanding is just over 139 million and might grow significantly. The reason is that YesDTC has the habit of paying with issued stock, rather than with cash.
With the above in mind, it is of crucial importance for the [BANNER] balance sheet of the company to improve rapidly in the near future. Because if the issued shares hit the market now, the post effect would be very unpleasant for regular traders. Which relates to another subject at hand – the last promotion that took place.
As mentioned, the promoter was compensated with shares of the company. Which provokes two questions immediately. One about the indicated potential revenues of YesDTC in the promotion and whether they would actually happen. The second is about this practice of paying with shares rather than with cash. Now, while some shareholders would prefer to wait until the price goes way above $0.03 and get the thousand % margin, others might look for a short sale, and be happy that they got more than if paid by cash. Investors should consider very carefully the above when thinking about buying YesDTC stock.
