True 2 Beauty Inc (OTCMKTS:TRTB) Spikes on Old News
The About Us page of True 2 Beauty Inc (OTCMKTS:TRTB)’s website says that they have developed an online shopping platform that is designed to compete with the likes of eBay Inc (NASDAQ:EBAY) and QuiBids.com. These are, you would agree, ambitious claims and experience has taught us that when penny stock companies make ambitious claims, things often end up pear shaped. Still, we decided to give TRTB the benefit of the doubt and see if they can really rival the aforementioned e-commerce giants.
Unfortunately, although we did our fair share of research, we couldn’t get to the answer.
It is true that back in April, TRTB launched a website called BetUGetIt which, supposedly, allows you to take part in some online auctions. They also set up a YouTube channel in which they showed us some of the items they are selling. Right now, however, BetUGetIt tells us that the company is working on a new online auction platform which will be up and running in early 2015.
They must be really busy on that online platform because they don’t even seem to have the time to publish their financial reports. The latest one saw the light of day more than a year ago and it covers the quarter ended July 31, 2013. It’s safe to say that fourteen months ago, TRTB wasn’t doing particularly well. Here’s what they had back then:
- $11 thousand in cash and current assets
- $31 thousand in quarterly revenues
- a quarterly net loss of around $290 thousand
These are not really the sort of figures that could make EBAY tremble with fear and the fact that they are so old means that a couple of weeks ago, nobody cared less about the stock. How bad was it?
Consider this: after saying absolutely nothing for five and a half months, TRTB finally broke the silence on October 7 and announced that they have signed a collaboration agreement with Applied DNA Sciences Inc (NASDAQ:APDN). TRTB said that over the course of eight months, they will conduct a proof of concept for the SigNature DNA Markers.
Investors didn’t react to the news at all. The volumes remained pitiful and TRTB continued to tumble towards the bottom of the chart. Yesterday, however, something strange happened.
More than 3 million TRTB shares changed hands in a matter of just six and a half hours while the ticker made a rather explosive move in the right direction. A mind-bending intraday high of $0.15 was reached and although these sort of levels were never going to be sustained, TRTB still managed to finish the session at $0.052 (nearly 250% above its previous close). Early trading today suggests that momentum can push it even further up. About half an hour after the opening bell, TRTB is sitting at $0.075 (another 44% in the green).
These sort of violent moves don’t happen too often and there’s always some sort of reason for them. In the case of TRTB, it would appear that the cause is the aforementioned month-old collaboration agreement.
Yesterday, APDN officially announced its uplisting to the NASDAQ and while this didn’t really have any effect on its own price, it did push TRTB through the roof. The message boards are now full of people who are saying that the collaboration agreement will help TRTB immensely and there’s no shortage of investors who are also suggesting that, now that APDN are on one of the national exchanges, they might be interested in acquiring TRTB.
Before you go on with your research on TRTB, imagine for a moment that you are in APDN‘s shoes. You’ve just made it to the NASDAQ and you have a host of problems to solve (the share price, for example, has been falling over the last two days). Will you concentrate on ironing out all the issues? Or will you go right ahead and acquire a small penny stock company with no up-to-date financial information and an e-commerce website that doesn’t work?
