TNI Biotech Inc (OTCMKTS:TNIB) Crashes Yet Again

TNI Biotech Inc (OTCMKTS:TNIB)’s stock wasn’t doing particularly well back in August. There weren’t any dramatic falls but the overall direction was towards the bottom of the charts. Volumes weren’t particularly intense either and the daily trade values rarely exceeded $100 thousand.

Then, on August 23, something happened and the ticker was brought back to life. Five interesting sessions later, TNIB had added no less than 60% reaching as high as $2.71 but, curiously, there was nothing to suggest such a run. On the PR front, things looked pretty much at a standstill, there were no new exciting filings to get the investor’s heart racing and there wasn’t even a paid promotion that could generate such an enormous buying pressure.

Whatever the cause, the sudden surge acted as something of a test for the management team who were supposed to give us some factual evidence confirming that values of above $2 per share really are justified. Unfortunately, they failed to do that and a ticker took a tumble. Less than two weeks later, around 73% of the market cap was gone.

That sort of performance, especially considering the lack of any paid pumps, warrants extreme caution when contemplating a potential investment. Nevertheless, TNIB issued a press release on October 2 and, apparently, this was more than enough for the ticker to launch another attack. It was quite a successful one as well.

On October 17, TNIB was already above the $2 per share mark and just two sessions later, it had breached the $3 barrier. As we mentioned in our previous article, all the excitement was created by the new distribution agreement with AHAR Pharma and, more specifically, by the extremely optimistic revenue projections contained in the press release. We also mentioned that we have some doubts as to AHAR’s ability to generate a mind-boggling $53 million in revenues considering the fact that the Nigerian enterprise was established just a couple of months ago and today, we’re going to give you another thing to consider when reading through October 2’s press release.

TNIB has been around for some time and it’s pretty evident from the posts on the discussion boards that some people have been keeping an eye on the ticker as well as on the announcements coming out of the company. With the help of one such investor, we managed to find this press release which, as you can see, is still available on TNIB‘s own website. It’s dated November 15, 2012 and, just like the announcement from four weeks ago, it speaks about a distribution agreement with a Nigerian entity.

The projections weren’t quite as grandiose as the ones now, but they were still substantial and a definitive deadline was set for the start of revenue generation – the end of 2013’s first quarter. Probably the interview with TNIB‘s CEO, Ms. Noreen Griffin, that we talked about in our previous coverages was shot shortly after the agreement was signed but, as we mentioned already, the predictions turned out to be a touch optimistic.

Is that the reason for the recent red sessions and the rather substantial 18% drop from yesterday? We’ll probably never know, but the fact remains that TNIB‘s performance is as shaky as ever which makes a potential investment (without any cold hard evidence of progress) extremely risky.

Another interesting development around the company is the recent featuring of the ticker in a small cap specialized magazine alongside other penny stocks like CVSL Inc (OTCMKTS:CVSL), Soupman Inc (OTCMKTS:SOUP) and Youngevity International Inc (OTCMKTS:YGYI). It didn’t really contain any new information (instead focusing on the company’s history and future) and it failed to impact the stock performance. While it’s of little use at the moment, it might act as a reference in the future when you want to check on TNIB‘s progress and see if they are being successful in sticking to their business plan.