Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC) Tries to Exit Triple-Zero Land
Things are heating up around Trans-Pacific Aerospace Company Inc (OTCMKTS:TPAC). If you check out our previous article, you’ll see that a couple of days ago, the stock was refusing to move and people were treading lightly. Now, though, the market’s attitude towards the ticker appears to be quite different.
Yesterday, TPAC gained a rather impressive 43% and it managed to close the session at $0.001 for the first time in just under three months. It also logged a dollar volume of more than $327 thousand which is quite an achievement for a triple-zero stock.
By the looks of things, many investors are expecting another interesting session today. In fact, the hype around TPAC is absolutely astonishing. The message boards are overflowing with people who reckon that the ticker is the “next OTC monster”. Some are even saying that they live in China and that they’ve been to the factory where TPAC‘s products will be produced. They don’t want to say too much, but they do repeat time and again that they won’t be selling their shares.
The discussion on Twitter is pretty active as well. Bill McKay, TPAC‘s CEO, has apparently decided that the social media is the best way to update his shareholders on what’s going on and thanks to this, we now know that he’s on a trip to China where he will attend several meetings. We also know that the 10-Q for the period ended April 30 should be filed on Friday and that a press release should be published next week.
It would appear that many people would like to hear what Mr. McKay has to say. In fact, the ones who keep a close eye on TPAC‘s official Twitter profile are saying that in the space of a night, the company’s followers have grown from around 700 all the way to nearly 53 thousand. We’ll leave it up to you to decide whether a small company that produces airplane parts can really gather such a massive following in a matter of less than twenty-four hours.
In the meantime, we should probably tell you that when a penny stock is hyped up around the message boards and social networks, people tend to overlook some rather important problems. Sure enough, when you check out the internet discussion, you’ll see that there are one or two things that haven’t been touched upon.
Nobody seems to be talking about the truly apocalyptic dilution, for example. If you really focus on the research you’ll see that the only thing growing faster than the number of Twitter followers is the number of outstanding shares.
In September 2014, for example, the O/S count stood at just over 166 million which, by Pennyland standards, is not that huge. By the end of January, however, it had grown to 218 million (more than 31% dilution in a matter of four and a half months). Unfortunately, the printing press wasn’t given a rest and over the next 32 days, it churned out more than 278 million shares which brought the total O/S count to just under 500 million on March 4. Anyone wants to hazard a guess where it stands now?
The next quarterly report should give us an exact number, but according to the company profile at the OTC Markets, on May 31, there were more than 2.4 billion TPAC shares issued and outstanding. Of course, Mr. McKay said during a recent conference call that a share re-purchase plan is about to be kicked into motion, but you really have to think long and hard about the damage that has already been done and about whether it’s repairable.
And you also mustn’t forget that experience has taught some people to take Mr. McKay’s words with a grain of salt. We wrote about this in more details a few weeks ago.
About forty minutes after today’s opening bell, TPAC is sitting at $0.0014 (40% in the green).