TechnoConcepts, Inc. (OTCMKTS:TCPS) Changes Direction

It was a devastating session for TechnoConcepts, Inc. (OTCMKTS:TCPS) yesterday. The ticker opened around $0.495 which is above Monday’s close but it proved to be too much for TCPS and minutes after the opening bell, the slide started giving virtually no upward movement throughout the day. The end of the session came when the ticker was standing at $0.252 which means that in just six and a half hours of trading, it managed to lose 44% of its value. It also means that TCPS‘ position right now is frighteningly similar to what it was back at the beginning of June when it made an impressive run from around $0.01 per share all the way up to $0.056 which was followed by a rather devastating crash meaning that after a few red sessions, it was back where it started. Is the same thing about to happen again? The next few sessions will give us an answer to that question, but we won’t be at all surprised if it does.

There are some rather good reasons for this. TCPS was a company that nobody was interested in just a couple of months ago. Then, for some reason, their Legal Counsel, Mr. David Kagel filed a statement for curing delinquency with the Colorado Secretary of State and shortly after that, people started talking about them on the message boards.

Normally, this alone isn’t enough to generate some serious buying volumes but it would appear that the case of TCPS is a little bit different. After a few days of constant optimism around the forums, the ticker made its 500%+ run in no more than three sessions. As we all know however, penny stocks tend to move down as quickly as they move up and this point was perfectly illustrated between May 31 and June 3 when more than 37% of the value was erased.

It continued falling throughout the rest of June and it appeared that it was on its way back to oblivion, but then, last Friday, it absolutely smashed through the charts logging gains of around 293%. Monday added another 50% but that’s not the most surprising bit. What is truly baffling is the factors that fueled the run. Or rather, the lack of such.

There are no news, the latest SEC filings were published in 2008, and while they finally logged some documents through the OTC News & Disclosure System, we wrote yesterday that they were nothing to brag about. In actual fact the only thing TCPS have in terms of assets is some intellectual property and they say in their reports that they are planning on monetizing the patents. The other thing that could potentially bring in some proceeds is the two subsidiaries – Jinshilin Techno Ltd. and Asante Technologies, Inc. (OTCMKTS:ASNL) where, according to the financial statement, they have controlling interest. Yet, the same report says that Jinshilin have not generated any revenues so far, while some posters on the message boards are saying that TCPS sold their holdings at ASNL long ago.

Looking at ASNL‘s website and, more specifically, the footer which says that the trademarks are owned by UIC Corporation leads us to believe that they might be onto something, although we couldn’t find a copy of a document presenting the transaction.

And here lies the main problem with TCPS. They did publish their long-overdue filings on Monday and while there’s quite a lot of information in them, it fails to convince us that success is just around the corner. The lack of a company website (which for a venture with a ground-breaking piece of technology is simply ridiculous) means that all you can lean on while making your investment decision is rumors around the investors’ forums.

And speaking of which, there you will find a lot of people who are also not sure if TCPS is the best place for your money. We can see that some posters have connected the people running the company to other penny stocks and they seem generally pessimistic about the whole thing.

While we can’t be 100% sure that all the claims are correct, we did manage to see that TCPS‘ CEO, Mr. Maurice Spitz is also at the helm of Innovative Card Technologies Inc. (OTCMKTS:INVC) and we can confirm that the Legal Counsel, Mr. David Kagel (the same person who filed the statement for curing delinquency) has had some serious problems with the SEC in the past.

It’s up to you to choose whether to trust the rest of the rumors (which include Facebook friendships, speculations on the longevity of the typical patent infringement lawsuit etc.), but regardless of your next move, you should always keep in mind that a TCPS investment comes with a lot of risks, and staying away might not be a bad move unless of course, you can afford the losses.

Yesterday’s crash was quite a devastating one and other ventures who experienced similarly heavy losses include ScripsAmerica, Inc. (OTCBB:SCRC) and Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) both of which are still suffering the consequences of a promotional campaign. TCPS, at first glance at least, seem to be staying away from those kind of practices, but there’s no guarantee that they’ll manage to avoid them forever.