A Buying Frenzy For TechnoConcepts, Inc. (OTCMKTS:TCPS)

The beginning of May, a couple of months ago. TechnoConcepts, Inc. (OTCMKTS:TCPS) is sitting well in triple zero territory and nobody could care less about the ticker. The latest filing with the SEC dates back to 2008 and nobody knows what has happened since then. Predictably, trading is virtually non existent and most of the people who once had trust in TCPS‘ success have probably all but forgotten about them.

Then, out of the blue, something happens. On May 16 the ticker jumps by a whopping 166% reaching trading volume of around 3.7 million shares. The next day is even more impressive and the number of stock changing hands amounts to a mind-bending 20 million with daily gains of around 87%. Just fourteen days after the ticker was brought back to life, it closed the session on May 30 at $0.056 which means that it had gained more than 1,800%.

Indeed, some impressive performance, but quite frankly, it’s not that uncommon for a penny stock to make violent runs following major news or paid promotions. Yet, TCPS was different in that respect. We wrote a couple of articles on them and we were baffled to see that there were no press releases. What’s more, it appeared that TCPS simply couldn’t be bothered to present their shareholders with any financial information.

There were a couple of emails sent out by Blue Horseshoe Stocks, but their campaign was done for free and TCPS was mentioned along with other penny stocks so we knew that they weren’t the main cause for the increased trading. In fact, the only thing that kept interest in TCPS alive was the unusual activity on the message boards. As we wrote in our previous articles there seemed to be quite a lot of people putting a lot of trust in a company that they practically knew nothing about.

There was no way this alone could support the high price for a prolonged period of time and, sure enough, the free fall started minutes after the 52-week high of $0.064 was reached on May 31. By June 10, TCPS was standing at around $0.014 – that’s approximately 73% in losses in just ten trading sessions. The interesting thing is, there wasn’t a particular reason for the drop, either. To the naked eye, it just seemed that traders had lost interest in the ticker.

Throughout June and the first half of July, TCPS was following a downward trend and we thought that there is little chance of them getting back where they were a couple of months ago, but we turned out to be wrong. On Friday, the ticker registered 16 million shares in trading volume and price gains of a whopping 293% and yesterday the number of shares changing hands was 20 million with gains of around 50% which means that the current value of TCPS‘ stock is $0.045.

While the eventful session from July 19 seems to be the result of nothing more than speculation, yesterday, TCPS‘ shareholders really had a reason to celebrate – the company provided them with some information… sort of.

A total of eleven documents were published through the OTC Disclosure & News Service and they contain everything from the corporate bylaws, through the articles of incorporation (divided into seven parts) to the most important of all – the financial report for the three months ending on June 30. Here are the figures:

• cash: $0
• total assets: $112 thousand
• total liabilities: $3.4 million
• revenue: $0
• net loss: $0

Having these figures in mind, we’re finding it really difficult to see why traders were so excited yesterday. There seems to be little information about what is exactly contained in the $112 thousand worth of assets, but most of it should be comprised of patents for their proprietary technology.

In addition to this they have a subsidiary called Jinshilin Techno Ltd. which is based in China, sells Set-Top Boxes for IPTV and seems to be inactive. According to the financial report they also have controlling interest in another publicly traded penny stock called Asante Technologies, Inc. (OTCMKTS:ASNL). ASNL seems to be a solid company at first glance, but when you take a look at their OTC Markets profile, you’ll see that they have the skull and crossbones badge and after a bit of research we found out that it was put in there when the SEC issued a temporary suspension order because of some questions regarding the publicly available information about them. TCPS, themselves say that they have absolutely no idea how ASNL are doing at the moment and they plan on filing some new information as soon as they find out.

In the meantime, investing in TCPS seems as risky as ever and although they published hundreds of pages worth of documents, we still know very little about the company or how it’s doing at the moment. That, along with the erratic stock movement displayed during the last couple of months should be enough to make you think twice before making any investment decisions that could prove costly.