Internet Plan May Be Company’s Salvation
The Internet is a financial miracle. Just ask Santa Ana-based Docsales.com Inc.
Three months ago, it was a dog of a company called Golden Pharmaceuticals Inc. that lost money in 13 of its previous 14 quarters and had been virtually ignored by investors. It also is a defendant in 47 lawsuits in three states related to personal injury claims by consumers who used the Phen-Fen diet drug combination it sold.
At the end of February, its total liabilities exceeded its assets by $6.4 million, and there was “substantial doubt about the company’s ability to continue as a going concern,” according to regulatory filings.
Today, it has a newly minted name, a strategy peppered with that magic word “Internet” and a stock that has increased sixfold in value. The stock, which was trading at $1.28 a share in April, closed Friday at $7, down 56 cents in over-the-counter trading. It had reached a high of $8.64 in June.
Last week, the company said it will expand to “support a sales level of $25 [million] to $50 million over the next 12 to 24 months” because of its proposed online store. From 1994 through 1998, the company had a total of $36.5 million in sales and lost $6.93 million.
The company, which last week made a series of announcements listing the technologies it plans to use in building the site, hopes to open for business online in September.
The company did not return calls seeking comment.