Major Pump Campaign for Tranzbyte Corporatio (OTCMKTS:ERBB)
A major pump campaign for Tranzbyte Corporation (OTCMKTS:ERBB) started yesterday roughly 2 hours before market close. The time at which the promotional campaign for ERBB started might be the reason why they didn’t make a big jump and their stock price was $0.0044 at market close.
Today, however, the effects of the pump campaign are starting to show and they opened about 11% higher at $0.0051. They started going down and are now at $0.0050 and this can mostly be attributed to the fact that there is big dumping of stock and they have a volume of 36 million traded shares in just 40 minutes after market open compared to 24 million for yesterday’s whole trade session.
This pump campaign might end up just like their previous one from the beginning of April when they were touted vigorously by promoters of all shapes and sizes. The campaign back then was a success for the insiders and there was a massive dumping of stock on April 10 which marked the start of the downfall for their stock price.On that date a mind-blowing volume of 393 million shares were traded at a total trade value of $3.1 million.
The latest press release from ERBB is concerning the purchase of the YO! debit card network. This comes as a bit of a shocker as the shady financials that you can find with a little searching state that the company had absolutely no revenue in 2012. Let’s take a moment to check the numbers of prime interest from the quarterly period ended December 31, 2012.
cash: $1 thousand
total assets: $1 million (mainly in the form of long term investments and intangible assets)
current liabilities: $3.5 million
revenue: $0
net loss: $167 thousand
Looking at these numbers it’s mind-boggling how they managed to acuire the YO! debit card network. We are relying on the numbers from this period as the company is reporting according to the alternative reporting standard in the OTC Markets and their last report shows absolutely no financial data. In fact the only numbers are concerning their shares.
ERBB have an intimidating amount of shares outstanding that totals above 2.4 billion and they have a market value of $10 million. Already as I am writing this article the volume of traded stock has raised to 61 million and the disturbing thing is that as it rises so does the price which is currently $0.0052.
It’s not quite certain if the massive dumping will take place today or the insiders will slow down in order to allow the stock to gain more momentum and make a bigger profit. One thing is for certain: with over 50 pump emails and optimistic press releases touting ERBB‘s shady business the stock is volatile and it is not sure when it will burst and start to deflate.
In the end it might prove to be a winner for more experienced investors, but people that havn’t done their due diligence might get burned. To avoid that be sure to do your research and weigh out all the risks before taking the choice to invest in ERBB‘s stock.
