Will That Marketing Solution Inc (OTCMKTS:TSTS) Find A Bottom?
Yesterday, in a single session, the stock of That Marketing Solution Inc (OTCMKTS:TSTS) lost 64% of its value closing at $0.0061. In just four days the company has fallen from a high of $0.125 to a low of $0.0059. Investors who bought at prices above $0.1 could now be facing losses of more than 94%.
The disastrous drop was sparked by a $50 thousand pump by the newsletter the Wolf of Penny Stocks but this was far from the first paid promotion for TSTS. In fact between February and September over 170 different email alerts touting the stock have been issued. In the world of pennystocks when such massive effort is made to artificially inflate a stock it usually means that some people own a vast amount of underpriced shares. ТSTS is no different.
A couple of year ago a group of investors bought 26.8 million shares for a total of $26,800 or $0.001 for a single share. The last 8-K forms filed by the company showed that there are outstanding convertible notes that could be turned into shares at massive discounts ranging from 40% to 50%.
The problem is that even without the risks associated with the pump TSTS doesn’t become any less dangerous. As of May 31 the company had just:
• $3238 cash
• $74,079 total current assets
• $622 thousand total current liabilities
• ZERO revenues
• $386 thousand net loss
The possibility of more discounted shares to be printed and the abysmal financials could continue to depress the stock of the company. Investors who are hoping for a bounce must be extremely careful. Do extensive research and set appropriate time horizons for your trades.
