Tanke, Inc. (OTCMKTS:TNKE) Rises On Another Round of Touts
It seems that the pumpers around Tanke, Inc. (OTCMKTS:TNKE) are not ready to give up even after sending more than 120 different email alerts since the start of the promotion on February 17. As you can see from the chart the artificial hype was initially able to push the stock as high as $0.47 but since then things have not been going so well. For the last three weeks TNKE has been fluctuating between 5 and 10 cents.
Yesterday though it finally manage to leave those price ranges after Damn Good Penny Picks and two of its affiliates – PennyStockNewsletters and Penny Picks sent out a round of touts on Sunday. For their services the pumpers bagged the sum of $30 thousand as compensation. As a result yesterday TNKE surged up the chart by close to 20% and were sitting at $0.13 at the end of the day. During the session the stock went as high as $0.142 but the change in price was overshadowed by the massive increase in traded volume.
Investors shifted 3.9 million shares in six and a half hours which is more than 56 times higher than the 68 thousand shares traded on Friday. TNKE themselves decided to do their part in the creation of more hype and early in the morning issued a PR that proudly revealed record breaking financial results for 2013. Actually the PR contained no new information because the financial report covering 2013 was filed more than a month ago and the sole purpose of the announcement was to lure investors in. The rest of the numbers for 2013 are:
- $673 thousand cash
- $2.2 million total current assets
- $2.1 million total current liabilities
- $4 million revenue
- $3569 net loss
Although such results are pretty impressive for a pennystock and TNKE just barely missed closing the year with a positive bottom line there are a few red flags that demand careful consideration. $1.4 million of the current assets are actually under the accounts receivable line. In addition TNKE issued 256 million shares and brought the outstanding shares from 33 million at the start of 2013 to 287 million at the end of the year. The company still has a couple of convertible notes that may cause even further dilution of the common stock.
That is why TNKE despite the respectable financial results remains an extremely risky choice for investment. Do your own due diligence and take into account all the possible risks before making any trades. Another company that has both the benefits of solid financials and the risks of a paid pump is Alliance Creative Group, Inc. (OTCMKTS:ACGX). This time the company themselves hired the newsletter Blue Horseshoe Stocks for one month worth of promotional emails for the total compensation of $10 000. Yesterday ACGX closed at exactly 1 cent after adding more than 21% to their stock price.
