{"id":7251,"date":"2015-10-22T14:02:07","date_gmt":"2015-10-22T14:02:07","guid":{"rendered":"\/?p=7251"},"modified":"2015-10-22T14:14:57","modified_gmt":"2015-10-22T14:14:57","slug":"global-digital-soltn-otcmktsgdsi-explodes-up-the-charts","status":"publish","type":"post","link":"\/articles\/global-digital-soltn-otcmktsgdsi-explodes-up-the-charts\/","title":{"rendered":"GLOBAL DIGITAL SOLTN (OTCMKTS:GDSI) Explodes Up The Charts"},"content":{"rendered":"\n

GLOBAL DIGITAL SOLTN (OTCMKTS:GDSI<\/a>) added a staggering 185.71% to its market value yesterday, when the market finally had time to react to the news of the Grupo Rontan Electro Metalurgica purchase. <\/p>\n

To elaborate – GDSI<\/a> <\/strong>bought 100% of the shares in a Brazilian limited liability company from Joao Alberto Bolzan and Jose Carlos Bolzan. According to the 8-K, the purchase will cost GDSI<\/a> <\/strong>a total of “approximately $26 million”, which will be paid out over a period of 48 months. Evidently investors thought that was exciting news, because the ticker soared – but is it really?<\/p>\n

Sure acquisitions are more often than not reason for excitement for OTC Markets investors, but there’s no real way to know the full extent of the assets that GDSI<\/a> <\/strong>has really acquired and the opportunities they represent until a report throwing light on the matter hits the web.<\/p>\n

Until then, we’ll know scant little about the newly acquired entity – except the fact that a heap of money will be paid to relieve Mr. Bolzan and Mr. Bolzan from its ownership, and the fact that GDSI<\/a> <\/strong>will have to assume its debts, which according to the filing, include the company’s bank credit lines of “approximately $52 million”.<\/p>\n

It should be somewhere around this detail that investors should get a bit wary, if they weren’t already. Was the acquisition of a company with so much debt really a good idea?<\/p>\n

And even if it turns out that it was, there’s the issue of what will GDSI<\/a> <\/strong>do with its new assets and opportunities. It has hardly achieved anything impressive up to this point in time – quite the contrary, one look at its latest financial sheets gives the impression of mediocrity:<\/p>\n