Tranzbyte, Corp. (PINK:ERBB) Waves Goodbye to Recovery

A few days ago, Tranzbyte, Corp. (PINK:ERBB) turned the tides, and now a clear and sharp downward trend has materialized, dragging the stock down a further 10% on Wednesday. Tranzbyte was among the latest to join the marijuana growing craze, but currently all the stocks in the business are deflating their spectacular gains from the past month, and ERBB is no exception.

Tranzbyte, Corp. is an OTC company striving to build a diverse business model by exposing small businesses to the stock market. In this way, it is currently acting as a vehicle for an organic fertilizer producer to gain access to investors’ funds. Yet the company has little resources to run a business at a high enough level:

• under $2 thousand  cash

• $3.7 MILLION current liabilities 

• ZERO revenue for the quarter ended September 2012

• $210 thousand net loss for the same quarter

Tranzbyte’s latest press release claims to engage the services of one Dr. Vasilenko (curiously mis-spelled to Valisenko). But even this Russian scientist may not be enough of an asset and a push for the business to overcome the mounting losses, along with the lost mood of the medical marijuana tickers.

The paid promotion for Tranzbyte happened back in January, and the stock dropped to double-zero levels soon after the last email from Stock Mister. But a mix of bargain buying and a new increase in the above mentioned marijuana- business tickers helped the stock breach the one-cent level after logging a period of good days on high buying volume.

We could say ERBB is defunct for now, with probably a dead cat bounce somewhere in the near future and possibilities of an upward trend still months ahead. The medical marijuana tickers may arise again, after they deflated for a while in the fall and made a second strong climb in January and February. But still, as with all stocks that rely on press releases and paid promotions, it is best to do your own research before committing to the hype.

Stock Mister is a paid pumper with a long history, taking up other marijuana stocks to improve its record and gain reputation from the so called pot bubble. But other pump events are not so lucky, such as VOIS, Inc. (OTC:VOIS), which got promoted only to cause massive selling in mid-February.