Zenosense, Inc. (OTCMKTS:ZENO) Explodes Thanks To Pump
Last Thursday the stock of Zenosense, Inc. (OTCMKTS:ZENO) suddenly burst forth and managed to find its place among the top traded pennystocks for the day. Investors showed record amount of interest in the company shifting 560 thousand shares before the closing bell rang. Well, that amount was nothing compared to what followed on the very next day- on Friday ZENO’s traded volume reached 1.8 million shares. The ticker closed the session with a gain of 20% at $0.575.
The company is trying to develop medical devices that should be able to detect dangerous bacteria and even certain types of cancers through the exhale breath of patients. On November 4 they announced the manufacturing of 2 pre-commercial devices. The technology sounds promising but unfortunately ZENO have little else to offer. Their financial state is simply atrocious – the latest quarterly report contained the following:
• $2359 cash and total current assets!!!
• $38 thousand total current liabilities
• ZERO revenues
• $112 thousand net loss
You might be wondering how is then ZENO capable of reaching its current market cap of $28 million? Well, we are talking about a pennystock and this almost always means one thing – a paid pump.
The first email tout was sent of November 4, coinciding with the latest PR from the company, by Stock Commander. The same outfit issued another email on Friday an hour and a half after the start of the session. The disclosed compensation of the newsletter is only $2500 making its influence on the market rather negligible. On the other hand investors are starting to report that a hard mailer for ZENO has also been put into circulation. Furthermore the total production budget for the promotion is said to be $1.5 million. If this is truly the case it could easily explain the sudden spike in interest.
The grim financials, the paid pump and the fact that just a couple of months ago ZENO sold 1.3 million shares at $0.21 make the company an extremely risky choice. Still, if you time your trades just right the pump certainly offers opportunities for some quick gains. If you miss the timing though the losses could be devastating.
