Penny Stock Locks Made an Impact With Therapeutic Solutions International Inc (OTCMKTS:TSOI)
Yesterday, just minutes after the opening bell, a couple of promoters including Research OTC, Lions Of Wall Street and Penny Stock Locks sent out some emails in an attempt to tout Therapeutic Solutions International Inc (OTCMKTS:TSOI). This definitely had an effect and the ticker reached an intraday high of $0.034. A little while after that, though, it settled down and finished the day at $0.0173 or just 2,9% up compared to the previous close. The biggest sign of the pump, however, can be seen in the trading volume – nearly 2.2 million shares which is twenty-two times bigger than the usual one. So, what’s all the fuss about?
Well, TSOI started off as a car dealer company and it ran that business for quite a while until they decided that it’s not really that profitable and back in 2011, pursuant to some license agreements, they changed their name and the field of operations. They started making and selling some products that treat common ailments like migraine. The license agreement was given exclusively to TSOI and it granted them the right to sell the products in the domestic market as well as outside the US.
It would appear that they had some success in this and while the financial statement doesn’t look too bright, we must admit that we were somewhat impressed with the figures under the revenues section. Here’s a recap of all the important financials:
- cash: $35 thousand
- current assets: $96 thousand
- current liabilities: $334 thousand
- yearly revenue: $2.1 million
- yearly net loss: $805 thousand
In addition to this, you will also see that there have been some changes to the share structure and not more than a couple of months ago, a total of 223 million shares were canceled. This could significantly increase the stockholder value if the wind is fair.
At this point, you’re probably thinking: “That sounds very good! All they need to do now is take care of the liabilities, streamline the manufacturing process and they will fly sky high!”. Well, as always, there is a catch.
And it’s a big one. The license agreement in its previous form expired on December 31, 2012 and there have been some major changes to it. Starting January 1, 2013, TSOI no longer have the market to themselves. In effect the holders of the license saw that the products have potential and they decided that they want their rights back which means that they too will be producing and selling the treatments, making them a competitor.
On the upside, TSOI are no longer required to pay royalties on the sales, but they are also not allowed to sell the products in the US. “So what?”, you might be thinking, “After all, only 4.6% of the world’s population live in the USA.”. That may be true, but the fact remains that a whopping 81% of TSOI‘s total revenues were generated in the domestic market which, in turn, means that, unless they pull out a miracle, their next financial statement will look much more depressing.
There is a massive amount of work to be done until they manage to achieve figures similar to the ones you see above and even then, there is no guarantee that they will be able to reach the all-important profits. One thing is certain – if the price drops because of the pump, which is something that usually happens after such campaigns, the reputation of the company will be severely shaken.
Yet another potential red flag is the name of TSOI‘s CFO – Gerry Berg, who, according to this profile was once the involved in a company called Imaging Technologies Corporation. We did a quick check and we managed to find that there was a class action against Mr. Berg and his former business venture. Of course we can’t be 100% sure that this is the same Gerry Berg and we also can’t be certain if the allegations were well founded, but we reckon that it’s definitely something you should keep in mind while making your decision on TSOI.
