That Marketing Solution Inc (OTCMKTS:TSTS) Cools Down

On Tuesday That Marketing Solution Inc (OTCMKTS:TSTS) opened at $0.0015 per share, price that was dangerously close to the company’s 52-week low of $0.0011. When the session came to end though TSTS were sitting more than 46% in the green. On the very next day things got even more heated – the stock surged by 86% and reached a close at $0.0041. The volume for the day surpassed 99 million traded shares.

It is clear that investors are excited about TSTS but how far can the stock go without anything new to support it? During yesterday’s session it already started showing signs of hesitation. While TSTS were able to climb up to an intraday high of $0.0065 during the first half of the session they quickly dropped back down and actually closed 2.44% in the red at $0.004. This time even more shares changed hands – investors shifted the unprecedented amount of 112 million shares.

TSTS definitely needed to cool down and the daily loss was negligible. By the end of the month though they should submit their annual report and the numbers inside it will definitely influence the behavior of the stock. Keep in mind that at the end of May the company was in a dismal state with:

• $3238 cash
• $74,079 total current assets
• $622 thousand total current liabilities
• ZERO revenues
• $386 thousand net loss

To keep themselves going TSTS sold several notes that are convertible into common shares at a sizable discount to the market price – from 40% to 60% depending on the note. The resulting dilution has been massive and it may continue for while longer judging by TSTS‘s decision to increase their authorized shares from 500 million to 1.5 BILLION. The change should become effective on December 18. Meanwhile even more notes are being sold. On November 10 TSTS raised $25 thousand through a note that can be turned into shares at a 42.5% discount.

Last week’s announcements that TSTS has successfully micellized CBD oil while also scaling its production to commercial batch size quantities may be enough to keep the hype going but jumping in on nothing more than hype could prove to be rather dangerous. Even if you truly believe in the potential of the company the red flags remain far too serious to be ignored. Take into account the various risks and adjust your trades accordingly.