Trulan Resources, Inc. (PINK:TRLR) Pump Resumes

Yesterday Trulan Resources, Inc. (PINK:TRLR) shuffled up the chart, closing 17% up, assisted by a round of promotional pumps.

Promoters touted TRLR last weekend, with an additional round of emails on Monday, but the effort was far from successful as the stock closed the first trading day of the week over 8% in the red. Yesterday pumpers tactfully waited for the market to close and see how TRLR will perform, then came up with more emails in the evening.

Monster Trading Alerts, one of the parties who advertised TRLR yesterday, disclosed a compensation of $55 thousand. The promo email engages in chart analysis that looks both deep and irrelevant. It seems the promoters are able to calculate resistance levels and formulate predictions that sound convincing, basing their conclusions on the 3-day movement of a stock that was pretty much dead prior to the promotions, with daily volumes in February ranging from 300 to 25,000 shares.

TRLR is a company that switched its line of business from HR to mineral exploration in November 2012, claiming to be on the lookout for precious metals across the Americas. Unfortunately, the company’s most recent filing is a Q3 report dated Sep 2012 that covers events and performance before the change of name and target sector for the company. The last quarterly contains some very serviceable revenues that were however eaten by costs and the company ended Q3 with a net loss of $74 thousand.

The report also states that management decided to omit notes to the financial statements, including commitments and details on shareholder transactions. This does little to promote investor confidence as the company is sparse in its filings even as it is, being a pink sheet enterprise. Investors have little to go on, except the press releases of TRLR and the optimism and forward-looking promise they contain.

Promoters at Monster Trading Alerts previously ran pump jobs that ended in disaster. One very recent example is a promotion on Hokutou Holdings Intl, Inc. (PINK:HKTU). After the pumpers announced the company was ‘due for a major bounce’ on Feb 13, HKTU went to slide over 66% in the following sessions.

Traders are advised to be extra careful with penny stocks targeted by paid pumps, as they usually move on hype and advertising and not on actual performance.