Tapinator Inc (OTCMKTS:TAPM) With a Seemingly Strange Drop

Tapinator Inc (OTCMKTS:TAPM) experienced a rather serious surge between November 4 and November 11. A few sessions of heavy volumes and steady gains brought it from around $0.28 all the way to $0.43. Yesterday, however, TAPM lost almost a third of its value and it stopped at $0.29 per share.

So, not the most remarkable of performances, but the people who have been following the stock for long enough are probably quite used to it now. In fact, this sort of a-surge-and-a-crash action is something of a pattern for TAPM.

Back in August, for example, the stock made a similar run when it climbed from around $0.25 per share all the way to nearly $0.54. Then, however, it lost momentum and an extremely short period of time later, it was struggling to stay above $0.30.

So, on the one hand, nothing new around TAPM. On the other, however, plenty of people will be a bit confused by yesterday’s crash in particular because it occurred mere hours after the company filed its report for the third quarter of 2015. Here’s what it looks like:

• cash: $1.8 million
• current assets: $2.2 million
• current liabilities: $317 thousand
• quarterly revenues: $728 thousand
• quarterly net loss: $582 thousand

There are some positive aspects of TAPM‘s Q3 report. The balance sheet, for example, is still quite solid and the revenues are growing both on a sequential and on a year-over-year basis – two things that are not very common in Pennyland.

So, basically, the report should have actually pushed TAPM in the right direction instead of dragging it down. It didn’t, and we can’t help but think that this might have something to do with the constant promotional pressure around the ticker.

Sure, it’s not a large scale pump with a multi-million dollar budget, but even so, the emails, while not too many, seem to be constant. A portion of them are paid for by the company itself which raises some questions around the management team’s spending habits, especially in light of the continuous losses.

The promotions clearly aren’t doing the stock any favors, but they might be of help to some newly-created shareholders who may or may not be willing to part with their holdings. If you take a closer look at the latest report, you’ll notice that in June, a few notes were converted into stock and you’ll also notice that in some cases, the conversion price stood at just $0.18 per share. Not the ridiculous discounts seen in the filings of other penny stocks, but the cheap shares could still exert pressure on the price if they are released on the open market which is why treading carefully might not be a bad call.