The Pump for Thinspace Technology Inc (OTCMKTS:THNS) Continues
On Sunday we intercepted yet another wave of email alerts touting the stock of Thinsapce Technology Inc. (OTCMKTHS:THNS). The involved pumpers were Damn Good Penny Picks and its various affiliates – Penny Picks, PennyStockNewsletters and Prepump Stocks, to name a few. Some of them already pumped the company at the start of November but this time the disclosed compensation was a bit higher – $20 thousand, compared to the previous sum of $15 thousand.
THNS have also being doing their part in creating as much hype as possible and since November 3 have published around 10 press releases. The latest one was put online early in the morning yesterday and it announced that Thinspace’s product now works with the popular program Microsoft Skype.
The PR and the wave of pump emails were able to attract record levels of interest towards the stock – yesterday investors shifted the record for the company number of 1.9 million shares; the average volume for THNS stands at 300 thousand traded shares. The stock opened with a gap up of nearly 2 cents at $0.195 and in the minutes right after the opening bell run to a high of the day of $0.246. Those who bought at that time though may have been a bit disappointed because the ticker slid back down and for the rest of the session remained relatively flat closing at $0.20 for a gain of 11%. Will the company manage to keep its gains without the paid promotion though?
Well, the pumpers often talk about the impressive revenues generated by THNS. And indeed for the second quarter of 2014 the reported revenues were $2.6 million while for the third quarter they stood at $2.3 million. Year-over-year the increase is astounding – Q2, 2013 had $267 thousand in revenues, Q3, 2013 had $411 thousand. There is one major problem though – the rest of the financial are not even remotely that encouraging. At the end of September THNS had:
• $82 thousand cash
• $546 thousand total current assets
• $33.9 million total current liabilities
• $673 thousand loss from operations
• $19 million net loss
Despite the millions of revenues the company has been primarily relying on the sale of convertible and promissory notes to fund its operations. In the world of pennystocks this is a rather common practice and conversions at 40%-50% discounts are not that rare. THNS’ outstanding convertible notes on the other hand offer even juicier discounts ranging from 60% to 75%. During the first nine months of the year 6.4 million shares were issued for the conversion of $244 thousand in debt for an average price of $0.038 per share. During November another 2.5 million shares saw the light of day at $0.031 each. Investors should keep in mind that the company is still entering into new note purchase agreements.
The millions of cheap shares coupled with the ongoing pump campaign turn the stock of Thinspace into an extremely risky choice. Plan your trades carefully and never invest sums that you can’t afford to lose.
