Tranzbyte Corp. (OTCMKTS:ERBB) In The Red Again
Tranzbyte Corp. (OTCMKTS:ERBB) had been on a steep path to the bottom of the charts until the latest news of their ZaZZZ hit the wire last Friday. The announcement hyped investors up and afforded ERBB two sessions in the green, but now that the press release is old news, the ticker’s crashed again – no less than 10.22% this time.
Although this turn of events was sudden and dramatic, it wasn’t exactly unexpected. In an earlier press release ERBB had stated that it is highly likely that the first ZaZZZ machine would be out on the street by the end of March 2014.
While it obviously failed to deliver on that account, at least the company gave us a final release date – April 12. This announcement certainly gave investors a cause to once again jump at company stock, and as a result the ticker soared. However bursts of media attention can only push a financially unstable company’s market value up so much before its share price starts crashing again. This is especially true in ERBB‘s case.
To elaborate – press releases may appeal to the general public, but the only truly reliable source of information on the activities of penny stock companies are their offcial filings. ERBB‘s latest quarterly filed report was particularly unconvincing – it covered the period ended Dec 31, 2013 and revealed the following figures:
- Cash on hand – $2665
- Total assets – $3.8 million
- Total liabilities – $5.8 million
- Quarterly revenues – $86 thousand
- Quarterly net loss – $323 thousand
These numbers are currently relevant mainly as an indicator of what ERBB had to work with when the marijuana rush began – and it didn’t have much, admittedly. This is why currently ERBB enthusiasts are pretty much betting blindly – ERBB‘s next financial report is due May 15. When it comes out it will no doubt give valuable insight on the company’s commercial achievements and growth during the marijuana market’s most volatile days, but that’s still a long way away.
Another marijuana stock that crashed yesterday is Terra Tech Corp. (OTCMKTS:TRTC), who is on its way down because its most recent financial report proved less impressive than its boastful announcements claimed it would be.
