TNI Biotech Inc (OTCMKTS:TNIB) Is Struggling To Stay Afloat

If you check out a detailed quote of TNI Biotech Inc (OTCMKTS:TNIB), you’ll see that the 52-week range is absolutely mind-bending: $10.20 – $0.68. Now, we all know that penny stocks tend to be quite volatile and that huge runs and horrific drops often come with little warning, but still, such a huge amplitude in the price is not common even for the most capricious of tickers. You’re probably wondering what has caused it.

Well, as is often the case with small cap ventures, someone decided that the stock could do with a bit of awareness and after some money changed hands, a number of promotional newsletters led by David Cohen initiated a pump. In was quite a long affair – the first emails came flying in at the beginning of August 2012, then, some optimistic press releases prompted a new, rather big wave of alerts during the first days of September and the ticker was mentioned a few more times in November. The effect on the price was quite astonishing.

Before the promotional pressure became really intense, in September 2012, TNIB was trading around the $1.60 per share mark but the hype managed to push it all the way up to $9 in mid-November. Surprisingly, even after the newsletters went quiet for a bit, the ticker managed to display a respectable performance, but the inevitable correction was bound to happen sooner or later.

Sure enough, by the end of January, it was already standing at around $7.50 and the sliding had just begun. By the end of August, TNIB had fallen all the way to $2.50 and as if the performance wasn’t bad enough, it showed some horrific chart movements over the last couple of weeks.

After registering a few consecutive green sessions, the ticker smashed through the floor logging seven red days in a row, annihilating 73% of the value in record time. Then, it tried to recover which was once again followed by some more losses. Yesterday, it registered daily gains of no less than 30% and all that moving up and down means that we can only guess where the ticker is going next.

This wouldn’t have been that surprising if TNIB were to be the target of another paid promotion once again, but if you check out our database, you’ll see that the last email alerts that we received are dated April 4. There are no landing pages that we can find and, on the whole, it would appear that the increased trading volumes generated over the last couple of weeks were the result of the exciting press releases issued by the company itself. Now though, things might be a little bit different.

When you check out Small Cap Network’s (SCN) website, you’ll see that TNIB is present on the list of “Featured Stocks” and a company profile was created where a contributor by the name of James E. Brumley has come up with one of the most optimistic articles we’ve ever seen.

Of course, SCN didn’t just pick TNIB for the fun of it. They were paid to do it (according to the disclosure statement TNIB have given them 20 thousand restricted shares) and you’re probably wondering if that is such a bad thing. Well, only time will tell, but there is definitely a reason to be extra cautious.

Small Cap Network are not solely focused on the campaign for TNIB. They are also covering Alkaline Water Company Inc (OTCBB:WTER) whose performance over the last week or so has been catastrophic. Past picks include other promotional failures like Arch Therapeutics Inc (OTCBB:ARTH), Montalvo Spirits Inc (OTCBB:TQLA) and Online Tele-Solutions Inc. (OTCMKTS:TUNG) and if you are a regular follower of our articles, you’ll know that SCN’s efforts didn’t really do the tickers any favors.

Even if you forget about the awareness campaign, you’ll see that the news aren’t quite so good. In our previous article, we were hoping to learn some more details about the $1.36 million cash injection that TNIB received recently. The management team decided to treat us and on September 12, they published an 8-K according to which, around 1.6 million warrants were exercised at $0.50 per share and a further 465 thousand shares were sold at $1.00 and $1.25. You can see that at this point, the stock comes with quite a discount and if TNIB manage to stick to their plan (of which there can be no guarantees), the margin for profit should grow even further. A positive thing about the latest filing is the fact that the newly issued stock is restricted, but even so, doing a lot of due diligence and weighing the risks carefully is an absolute must.