Tranzbyte Corp. (OTCMKTS:ERBB) Falters Once More

Tranzbyte Corp. (OTCMKTS:ERBB) made a good run in the green thanks to the media attention it attracted with the announcement that it was negotiating another strategic partnership. Unfortunately for ERBB, its ascent didn’t last – once the news went cold, the company was quickly back in the red, losing 11.59% of its market value in just one session.

ERBB‘s fall was anything but unexpected. Currently, marijuana PR in general, and ERBB‘s uninformative press releases in particular, work in a way somewhat similar to a paid pump. Pot PR attracts the attention of a lot of investors for a brief period of time and exploits market volatility to yield explosive share price growth, which lasts for an extremely limited period of time.

Although it is generally true that marijuana press releases are not always as blatantly misleading and downright false as pumps, there certainly are similarities between the two promotional tactics. The fact that both the SEC and the FINRA have issued investors alerts concerning pumps and falce PR should be a warning about the companies that use such tactics obvious enough for everyone to see.

Still, contrary to what one may expect under these circumstances, PR exploitation hasn’t become less effective. ERBB‘s most recent publicity stunt managed to push it more than 20% up the charts. However, once investors discovered that ERBB‘s probable future partner is a dubious no-asset, no-revenue OTC penny stock, things turned around immediately.

The Friday’s final bell saw ERBB close at $0.0305, and gathering downward momentum. Which is not all that surprising, considering that the company just lost the volatility exploitation engine that was keeping it afloat. This, combined with ERBB‘s less than impressive financials and the company’s tendency towards accumulating toxic debt, was enough to immediately cause it to crash yet another time.

Currently, ERBB enthusiasts are excited about the investor conference call that the company has announced for Tuesday, June 10, 2014 from 10:00 AM to 11:00 AM (MST). It is supposed to throw some much needed light on company affairs, and will likely have an immediate and obvious effect on the company’s share price. If the news and clarifications given in the conference call turn out to be satisfactory, the company may stabilize, or even head back up the charts. If not, ERBB can be headed for another bumpy ride in the red.

Another company who lost 11.6% of its market value on Friday was GrowBlox Sciences Inc. (OTCMKTS:GBLX), who, unlike most of the other companies in the marijuana sector, have actually acquired a dispensary approval from the Clark County administration.