Tranzbyte Corp (OTCMKTS:ERBB) Takes a Hit

Last week the stock of Tranzbyte Corp (OTCMKTS:ERBB) managed to recover from the slight slump that was caused by the failure to reach an agreement with the PARC Dispensary which was supposed to be the first location to use their automated vending machine. It closed in the green for four sessions in a row and at the end of Friday’s trading found itself at $0.022 per share.

When trading resumed on Monday it seemed that the positive momentum had carried over the weekend and ERBB quickly surged upwards and passed 30 cents per share. Although it couldn’t maintain such heights for long the stock was comfortably sitting at $0.028 but then, during the last hour of the session, it started to rapidly lose positions. When the closing bell rang the stock had fallen to $0.02, 9% below its previous close.

The drop shouldn’t indicate any general change in sentiments towards the stock as the company is getting closer and closer to completing their line of vending machines. Last week ERBB announced that they will be using Cyber Kiosk Solutions, Inc. f/k/a Dynasty Limousine Inc. (OTCMKTS:CYBK)’s software for Age/ID/Fraud verification.

This announcement also meant that CYBK will be entering the marijuana industry and their stock shot through the roof almost immediately. On Thursday when the announcement was released CYBK jumped up by nearly 119% while during yesterday’s trading they added close to 63% closing the day at $0.11 per share.

ERBB have been able to generate revenues but their other financial results leave a lot to be desired. According to the latest financial report which covers the quarter ending September 30, 2013, they had :

• $2600 cash
• $63 thousand current assets
• $4.6 million current liabilities
• $61 thousand revenues
• $289 thousand net loss

Investors should also keep in mind that for the past year and a half ERBB have managed to bring the amount of outstanding shares up to 3.4 billion out of the 3.75 billion authorized.

For now ERBB is keeping the gains in price it made thanks to the general marijuana hype and it has even surpassed the highs from the previous hype wave that took place last February. If you don’t already have a position be sure to do your own research and weigh in all the risks before jumping in.