Decision Diagnostics Corp (DECN)

[ksuave]

For those who missed it, this is the conclusion of Hot Stocks:

The first one is eye-achingly obvious. Despite the impressive revenue jump, DECN's financials are far from ideal:

cash: $543 thousand
current assets: $2.6 million
current liabilities: $3.4 million
quarterly revenues: $112 thousand
quarterly net loss: $242 thousand

And while the Q3 sales look good, the same can not be said about the revenues logged during the first nine months of 2015. At $292 thousand, they are actually 22% down from the ones recorded during the same period of last year.

If you decide to inspect the report even more closely, your attention might be drawn to THE FACT that during the first three quarters of 2015, DECN issued a fair amount of Series E Preferred shares for a variety of reasons at rates ranging from $0.19 to $0.25 per share.

This doesn't sound too bad. Until, that is, you find out that every single one of the Series E Preferred shares (there were 687,540 of them at the end of September) can be turned into 14 common shares. Basically this means that in the very near future a rather significant amount of common stock might see the light of day at an effective price of less than $0.02 per share.

These are all things you should probably consider carefully before you put your money on the line.