Paid Pump Brings Thinspace Technology Inc (OTCMKTS:THNS) Back To Life
For months the stock of Thinspace Technology Inc (OTCMKTS:THNS) was drifting sideways fluctuating mostly between $0.0006 and $0.0008 on meager trade volumes. So meager, in fact, that on June 7 throughout the whole trading day not a single share was actually exchanged. Yesterday, however, investors were driven in a state of buying frenzy and as result THNS saw the unprecedented amount of 200 million of their shares changing hands. The intense trading pushed the ticker to a close 66.6% in the green at $0.001.
Could the reason for the drastic change in sentiment be the new PR that THNS published early in the morning yesterday? While investors might have been excited to get a new announcement after over a month of silence it seems unlikely that THNS‘ enhanced partner program could have evoked such a reaction. No, it is far more likely that the reason for the immense trading observed yesterday was the fact that the infamous pump newsletter the Wolf Of Wall Street sent out several alert emails for THNS.
Of course the pumper didn’t do it for free – according to the disclaimer at the bottom of the emails The Wolf of Wall Street received a $42 thousand compensation for a 1-day advertising contract. This means that THNS will now be once again left to trade on its own and as a result many investors risk getting stuck in a highly illiquid and extremely dangerous stock.
Doing even a cursory due diligence quickly reveals just how dangerous can THNS be. Just open the OTCMarkets profile page of the company and you will be immediately greeted by the Caveat Emptor skull and crossbones warning sign. It was put there partly because of the paid pumps for the stock but also as a result of the missing financial reports of the company. So far THNS have not submitted their quarterly report for the three months ended September 30, 2015, the annual report for 2015, and the quarterly report for the three months ended March 31, 2016.
The latest information about the financial state of the company is now close to a year old – at the end of June 2015 THNS had:
• $94 thousand cash
• $285 thousand total current assets
• $41.7 million total current liabilities
• $333 thousand revenues
• $31.3 million net loss
During the six months ended June 30, 2015, THNS issued over 100 million shares as a conversion of debt and accrued interest but it still had a vast amount of outstanding convertible notes that could be turned into common shares at discounts ranging from 30% to 60%. Not surprisingly the subsequent events section of the report contains even more conversions – 92.7 million shares were issued in July 2015 followed by 58.5 million shares issued in August 2015. Back in February, this year, THNS had nearly reached their authorized amount of 500 million shares with the company having 494 million outstanding shares as of February 16. At the start of May, however, a vote was held during a special meeting of the stockholders approving an increase of the authorized amount to 3.5 BILLION.
Without the artificial hype of the pump the myriad fo red flags surrounding THNS may very well depress their stock back to its previous prices. That is why we always encourage you to take the words of the various pump outfits with a grain of salt and to do your own research before committing to any trades.
