Tapinator Inc. (OTCMKTS:TAPM) Soars Even Higher

Tapinator Inc. (OTCMKTS:TAPM) exploded another 37.95% up the charts yesterday, after another hype fueled session of frenzied buying.

It seems like investors are still excited about this company’s progress in the last reported quarter – and TAPM has done its fair share of work to encourage that particular state of developments. The last few press releases and coverages on TAPM that have hit the web have focused exclusively on its positive achievements, growth etc.

While said publications are certainly alluring with their optimistic and boastful words, if investors are to only read those, they’d be left in the dark about the pitfalls that surround the company. And, although those pitfalls may not advertised by the company and its fervent supporters, they should certainly not be ignored.

A serious red flag that investors should definitely note is the fact that even after all its revenue increases and quarter over quarter growth, TAPM is still having trouble making ends meet. It reported a staggering $4.9 million in net loss for the last quarter alone, and although most of that can be attributed to loss on derivative liability, the fact remains that TAPM is still struggling with the market.

Another detail that should definitely be noticed is the fact that TAPM‘s common stock outstanding has increased from 46 million to 57 million over the last year or so, mostly on account of conversions of toxic debt. True, a dilution of less than 25% is often commonplace on the OTC Markets. However, the fact that the company just increased its authorized shares from 75 million to 150 million should ring a bell for seasoned investors.

Investors are advised to consider what said moves represent and think very carefully on what could follow them before jumping on the TAPM hype train.