Zenosense, Inc. (OTCMKTS:ZENO) Falls Despite A $1.5 Million Tobin Smith Pump

Last Friday the stock of Zenosense, Inc. (OTCMKTS:ZENO) enjoyed unprecedented attention from the market. Investors shifted more than 1.8 million shares and the relentless buying pushed the stock 20% higher to a close at $0.575. An impressive performance but we warned you that it was only possible thanks to a paid pump.

If you take a look at the landing page that was created to tout ZENO you will see a rather familiar face – Mr. Tobin Smith. Last year Mr. Smith got fired by Fox after they found out he was touting the stock of Petrosonic Energy Inc (OTCMKTS:PSON). Since then he has gone on to hype up quite a few other companies but the results have been far from impressive – just take a look at the charts of three of his recommendations – HPTG, PSON, GFOX.

According to the disclaimer at the bottom of the landing page the current promotion for ZENO has a total production budget of $1.5 million. With such a vast sum allocated for the pump it is no wonder that investors have begun reporting that a hard mailer has also been put into distribution. The company is even being touted by compensated posts on message boards. Apparently Quality Stocks are going to receive the sum of $58 thousand for their services.

Despite all the efforts though when trading resumed after the weekend ZENO started sliding down almost immediately. At the end of the session the stock had slashed 13% of its value and was sitting at $0.50. Still, the market price remains grossly disconnected from the reality of the company. On Monday the quarterly report for the period ending September 30 was filed and it contained the following:

• $108 thousand cash and total assets!!!
• $19 thousand total liabilities
• ZERO revenues
• $98 thousand net loss

The company is trying to develop medical devices that can detect MRSA and lung cancer through the exhale breath of patients but they will need to acquire a lot more funds in order to do so. During the next twelve months ZENO will have to pay development expenses of up to $1.3 million.

Despite the multitude of red flags the multy-million pump could offer some opportunities for quick gains if you time your trades just right. If the risks are worth it though is up to you to decide.