Last week, Data Storage Corp (PINK:DTST) hit the huge gain. The flight started on Thursday, when the stock soared 300% on
the market, and on Friday it added another 150% to its price.
The shocking price jump immediately attracted traders’ attention, though the reason for it appears to be pretty unclear.
The last news released by Data Storage dates from Aug 19, when the company filed its financial results for the period ended June 30, this year. Apart from this report, no information on DSC can be found these days.
Still, there was something that provoked investors last Thursday. On that day, PRNewswire published a survey on Data Storage related to the major concerns connected with its growth and capacity.
Obviously, the survey has supported DSC stock price at once and it closed the week at $0.50 per share. Now everyone is curious to know if the climb will continue.[BANNER]
According to the unaudited 10-Q of DSC, its cash and cash equivalents have increased significantly over the past six months, as well as the company’s current assets. However, accumulated deficit and long-term liabilities also jumped up.
Which is more bothering though, is that most of the corporation’s assets come from employee loan and even the capital available is not sufficient to cover the loan. While at the same time, net loss and expenses keep increasing. Also, due to the issuance of stock for $1.500.000, the working capital deficiency of DSC reached $1.7 million.
In this case, despite its higher amount of assets, it won’t be easy for Data Storage to keep the profit.
