TryPennyStocks and Zippy Bags Inc (OTC:ZPPB) are Flying

During yesterday’s trading session Zippy Bags Inc (OTC:ZPPB) absolutely exploded – more than 14 million shares changed hands and the price soared by a whopping 217%. Why did this happen?. After a lot of investigation, we still can’t point out even one particular reason.

Zippy Bags are a company that specializes in keeping your precious bicycle or snowboard protected from the elements by producing supposedly high-quality cases and bags for them. This means that you can put your bike on the roof rack and not worry about it being harmed in any way. We headed to their rather old-fashioned looking website to check the products out. There are some bags and cases, and they are available for purchase directly from the website. What struck us, however, is that for products that seemed to have been named after a cartoon character, they cost quite a lot. A bike bag, for example will set you back around $140, while a run-of-the-mill polo shirt costs about $50.

Having this in mind, it’s not that surprising that ZPPB have generated no revenue during the third quarter of 2012, as seen from their latest SEC filing. As for the rest of the report, it’s just as appalling:

• cash: $64
• current assets: $8,319
• current liabilities: $33,647
• net loss for Q3 of 2012: $11,518
• net loss since inception: $22,931

In their favor we have to note that they have registered ONE sale since the inception of the company. It was back in 2011 and the profit has fallen into oblivion long ago.

Both ZPPB and the promoters are unperturbed, however. Press releases have been flying out of the company headquarters on a regular basis and the newsletters have been hard at work keeping the excitement going. The only problem with this, though, is that although the news sound quite exciting, some of them have no connection to reality whatsoever.

Here’s an example: back in August 2012 promoters stated that ZPPB have singed an agreement which would secure about $3.3 million in revenue. Penny Stock Newsletter claimed that ZPPB are turning their attention to the world of motorsport as well. We looked hard but we couldn’t find a single piece of evidence to support any of these claims.

Now, the news sounds just as encouraging: ZPPB supposedly signed a contract to sell 12,000 of their bike bags to a company called World Wide Wholesale, Inc. the only problem this time is that after a lot of searching on the Internet we couldn’t find a single sentence written about World Wide Wholesale, Inc. With that in mind, we wouldn’t be surprised if the next quarterly report still have zeroes under the revenues section.

Especially when we have in mind that the current advertising campaign is run by none other than TryPennyStocks. That is the same promoter who claimed that Green Energy Renewable Solutions Inc (PINK:EWRL) have a huge potential. Now, some months after these claims, we can see where this potential took them.

With financials thin on the ground and a history of hot air balloons covered up as press-releases, we wouldn’t be surprised to see ZPPB following in EWRL‘s footsteps.