Talon International, Inc. (OTC:TALN), The Rare Solid Stock- Promoted

The promoters are ever hungry for new material, and this time it is fashion company Talon International, Inc. (OTC:TALN), which repaid the hopes, doubling in price on Monday, on record buying volume. April has seen 4 emails, with unknown compensation, probably free, by several professional promoters. TALN0409.png

So far, TALN has been traded erratically, with low volumes. The company has a potentially sweet business of supplying the fashion industry with snaps and other accessories, and let’s look at where those fashionable necessities have taken the financial situation: LOTE0409.png

  • $8.9 million cash
  • $13 million total current assets
  • $11 million total liabilities
  • $679,347 net income for 2012 on 44 million sales

TALN seems like a company that would be picked for the stock that is well underpriced in comparison to its assets and earnings. The company is capped a little under $3 million, an unusually low price, and no wonder pumpers may be picking TALN up both for the short-term gains and the long-term potential.

TALN is touted as having “many intraday possibilities”, which also means fast swings in price, and climbs as high as 60% in a short trading timespan. While this may turn out positives, it is best to be aware of the ticker moving between 7 and 12 cents very fast.

Two of the company’s oficers, Dyne Larry and Schnell Lonie D exercised an option to acquire a total of 1.5 million shares, an amount that could significantly affect trading, should it be sold. Otherwise, with record volumes at 2.5 million shares bought, TALN is vulnerable from shedding the newly-made holdings.

Fashion is the new hot thing on the penny stock markets, and in the past few days Lot78, Inc. (OTC:LOTE) has seen action, inspiring both hopes and a fear that the ticker will tumble suddenly from its extremely high price. However, there seems to be a significant difference, with Lot78 betting on an original collection, and TALN quietly making better earnings by servicing the everyday needs of a large industry.

The next few days will show how both tickers react to investors’ moods, but in any case it is best to estimate the acceptable losses on your own before committing to a promoted ticker.

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