Tengion, Inc. (OTCMKTS:TNGN) Grows in Attractiveness
A sudden optimism gripped the stock of Tengion, Inc. (OTCMKTS:TNGN), despite the fact that the latest promotional email came back in the middle of June. But a week of extremely high volumes led to Thursday’s extreme success, lifting the ticker more than 55% to $1.31. Dollar volumes were near $800,000. 
TNGN is recovering from a long slide taking up the past two years, and before the promotion stood at rock-bottom 31 cents. There is optimism that the ticker may hold to these levels, or even be taken higher. 
The company, only capped at $4 million, is unknown in promotional circles until taken in by The Stockfather. Let’s have a look at what the balance sheet contains, to see if there is any underlying potential based on the results. TNGN has shown:
- $2.8 million cash
- $7.6 million total assets
- $4 million total current assets
- $14.18 million total current liabilities
- $23.8 million total liabilities
- Zero revenues
- $4.1 million quarterly loss
At first sight, TNGN is underpriced in comparison to its assets, but this is a company holding large amounts of debt, some of it convertible. And the operations have not achieved revenues for years, which may in the end deter investors from believing fully in the potential of TNGN to create organ-regeneration medical treatments.
TNGN is also planning a reverse split, leaving only 2.5 million shares outstanding, and a small free float that would allow interesting price movements. This was one of the attraction points mentioned in The Stockfather’s newsletter. The pumpers also rely on products still in the development pipeline, but as we saw, those are far from being translated into revenues.
If The Stockfather is pleased enough, there may be another mention for TNGN. Still, the impressive run also poses the risk of a brief reversal.
TNGN is yet another company trying to impress with innovative therapies. Several biopharmaceutical tickers are very active, among them heavily promoted Arch Therapeutics, Inc. (OTCMKTS:ARTH), which is only logging heavy falls. Liberal Medical Holdings, Inc. (OTCMKTS:LBMH) is holding on, showing a small retreat, but resuming with healthy buying volumes on Thursday.
Where TNGN will be taken is anyone’s guess, but an upward series is very probable. Still, it is best to do your own estimation of risk, and not invest unless you can also afford a downward turning.
