Emerging Healthcare Solutions, Inc. (EHSI.PK) on The Way Up
05 Jan 2011

Since the beginning of December, lots of positive news came out, related to Emerging Healthcare Solutions, Inc. (EHSI.PK). On Dec. 1st, after annoucing that EHS has acquired Celulas Genetica, a Central American leader in stem-cell technology acquisition and development, traders went berserk as over the next two days traded volume of EHS reached an all year high of over 4 million. In the course of the next 30 days, the stock prices increased in a steady manner, even though the volume of daily traded shares returned to its normal state.
After reaching the bottom of $0.15 per share last November, now the company seems to have found the right path for development. At yesterday`s session, the stock traded at $0.45, as volume again topped 1 million shares, most probably, as a result of another recent announcement from the CEO of the company.
It is yet to see, though, whether the upward movement in share prices would continue. So far, it was fueled by news about ambitious plans, acquisitions and successful negotiations for acquiring licenses, as well as opening new offices outside the US. But a real sustainable growth of the business should be visualized in the financial statements of the company. It is not SEC registered and the last quarterly report released by EHS was far from optimistic. Outstanding debts of more than $3 million, coupled with the continuing practice of obtaining loans for financing the company’s operations is not something that investors can forget over positive newsletters and a slowly increasing price of the shares.
After all, in the middle of Jan.2010 the stock prices were around $2.50, and have been falling ever since, with the exception of last month. As mentioned in the last financial report, the management of the company intends to finance the working capital deficit and overall accumulated deficit by borrowing money and selling stock. However, this otherwise suitable strategy, cannot serve as a survival tool for a longer period, only sales and actual net profits can do that.

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