Tanaris Power Hldgs Inc (OTCMKTS:TPHX) Fails to Bounce
The $600 thousand pump for Tanaris Power Hldgs Inc (OTCMKTS:TPHX) started about four weeks ago. The landing page was written by Shawn Roberts from The Profit Letter and in it, he said that the ‘shares you can buy today for 50 cents could soar to $5.56.‘ About a month later, we can say that his predictions are not exactly in line with what is happening in reality.
The stock did react to the hype initially and it found itself at more than $0.70 on April 21. Unfortunately, it then turned on its heel and started tumbling down. Seven consecutive red sessions brought it down to less than $0.30 and although it did bounce nicely on Friday (on an extremely low volume), it suffered another correction yesterday and it closed the day at $0.32 per share.
The pumpers have not given up. Over the last few days, we have received quite a lot of email alerts from Hidden Gem Stocks as well as a few smaller outfits, but unfortunately for them, the promotion seems to be ineffective. Why is that?
Part of the problem lies with the pumpers themselves or, more specifically, with their track record. Take Mr. Roberts, for example. On March 23, we received an email in which he said that Monarch America Inc (OTCMKTS:BTFL)’s potential is massive. Back then, BTFL was traded at $0.20 per share. Right now, it’s sitting at $0.10.
And it’s not like there’s anything to suggest that TPHX can be different in any way. The recent changes in the name and ticker symbol might lead you to think that the company has gone through a reverse merger with a private entity called Tanaris Power Inc. The press releases would have you believe that it’s now in the business of producing some massively efficient batteries.
A peek at the Subsequent Events section of the latest 10-Q, however, reveals that if the acquisition of Tanaris Power is to go through, the public company will need to complete some payments. The same report says that TPHX has defaulted on those payments.
In other words, TPHX is not in the battery business. It’s a failed mineral exploration company that finished the quarter ended January 31, 2015 with the following financials:
- cash: $2 thousand
- current assets: $52 thousand
- current liabilities: $72 thousand
- NO revenue since inception
- quarterly net loss: $10 thousand
The names of the people involved don’t inspire any confidence, either. Tanaris Power’s CEO, for example, is called Bruce Farmer, and he is also expected to take the reins of the public company once (and if) the acquisition goes through. An 8-K form from a couple of months ago says that Mr. Farmer’s ‘extensive business and management experience will be invaluable in achieving‘ TPHX‘s goals, but we’re pretty sure that Kolasco Corp (OTCMKTS:KLSC)’s shareholders tend to disagree. Mr. Farmer has acted as a CEO at KLSC for the last few months and he hasn’t really succeeded in getting the company back to its feet.
So, there’s no shortage of things that could make you think twice before putting your money on the line. And while you’re contemplating the risks, others might be in a hurry to walk away with the profits. As we mentioned in some of our previous articles, a couple of years ago, some investors bought a total of 30 million shares for just $60 thousand, and they might be willing to part with their holdings in light of the uncertainty around the company’s future.
We probably don’t need to tell you that if a large amount of stock hits the open market, the effects on the ticker could be quite devastating.
Thirty minutes after today’s opening bell, TPHX is bleeding heavily. It’s currently sitting at $0.271 (15% in the red).
