Tranzbyte Corp (PINK:ERBB) – One Of Yesterdays Most Traded Stocks
To say that the last market session was a big hit for Tranzbyte Corp (PINK:ERBB) would be an understatement. Not only did they rise nearly 30% to close at 0.008, but they also reached the unprecedented volumes of more than 390 million.
ERBB finally found the right mixture of pump campaigns and PR releases to entice investors once again. Mere hours after we published our article about them, they came out with a new statement that brought on a real trading frenzy. Ignoring all the flowery words and overly enthusiastic phrases it came down to this – the company will begin distribution of its Automated Marijuana Vending Machine beginning next quarter. That is something praiseworthy – launching a real product with a real target audience.
But for now their financials paint a different picture. The latest report they have filed is for the period ending December 31 and contains the following data:
- $1269 in cash
- $1 million tottal assets
- 3.5 million tottal current liabilities
- no revenue for the last six months
- $166 000 net loss
The numbers do nothing to boost our confidence in ERBB. They have virtually no cash to rely on and even paying with common stock is under question as they are closing in on the currently authorized 1 995 000 000 shares.
The ticker gained considerable momentum but now it is left entirely to the mercy of the market. Most of the pumpers that touted it have gone on to look for new picks and it is highly doubtful that ERBB can come up with an even bigger news. The only thing that can sustain the current price levels for a longer period is the release of a positive financial report for the first quarter of 2013.ERBB may continue climbing upwards due to the accrued inertia but the sudden drop is inevitable without anything to support them. The best way to prevent unwanted losses is to always do you own due diligence before investing.
