TechnoConcepts, Inc. (OTCMKTS:TCPS) Shuffled Up Again

6TCPS.pngBack in the Summer of 2013, TechnoConcepts, Inc. (OTCMKTS:TCPS) went through some interesting sessions. A few optimistic press releases and some promotional activity brought it back from the dead and pushed it on an exciting run. Gradually, however, the enthusiasm dissipated and the ticker dropped back down to the sub-penny levels. Right now, we’re seeing another wave of increased interest.

It all started at the beginning of April when TCPS announced their plans to enter the booming marijuana industry. They first bought some pot-related websites and then announced a memorandum of understanding for the acquisition of a company called Zimbali, Inc. – a revenue generating entity that, though newly formed, already has a long list of customers.

The excitement was also fueled by a press release from April 23, according to which, an acknowledged investor in the penny stock world called Irwin “Izzy” Zalcberg decided to invest some money in TCPS. A few days later, BrokerBank Securities Inc. published a report which suggests that the company “might be a reasonable way to invest in cannabis“.

The press releases and the reports did have their influence on the stock performance, but the volumes never really took off. Over the last few days, however, we’ve seen some unusually high interest. Yesterday, for example, TCPS managed to shift more than $765 thousand worth of shares which is a lot for a sub-penny ticker. The performance was not brilliant (around 13% of the market cap was wiped out), but people don’t seem too bothered about the drop and the majority of investors around message boards reckon that the stock is in for a breakout.

The whole commotion, it would appear, is caused by a Twitter user known as Wolf of Weed Street who, apparently, announced TCPS as his new pick a couple of days ago. He became famous around the green rush that took over the penny stock world at the beginning of the year and it’s clear that right now, he has quite a following. He prides himself on supporting tickers purely based on his due diligence, but he sometimes makes mistakes that prove costly (Growlife Inc (OTCMKTS:PHOT) is a perfect example).

Of course, it’s up to you to decide whether you prefer to trust his due diligence or your own, but we should note that, having looked at TCPS, we’re really struggling to see why he likes the company so much.

The websites that were acquired a month ago don’t seem to be operational at the moment, and even the company’s own internet portal appears to be down.

TCPS‘ latest financial statement doesn’t look like much either. Here’s what they had on March 31:

  • NO cash
  • NO revenue
  • total assets: $112 thousand
  • total liabilities: $2 million

At the same time, a quick comparison between the latest report and the one before it shows that the number of issued and outstanding shares has grown by as much as 444 million. There’s no clear explanation as to who or why received the newly printed stock.

And even when you take a look through Irwin “Izzy” Zalcberg’s portfolio, you’ll see that he doesn’t always get it right. On February 12, for example, he put some money in Cyber Kiosk Solutions, Inc. (OTCMKTS:CYBK). The stock moved up and several days later, it hit its 52-week high of $0.375. Right now, it’s standing at $0.057 per share. On March 20, he announced his investment in IMD Companies, Inc. (OTCMKTS:ICBU). Once again, his move was perceived by the majority of traders as an extremely positive sign and on March 25, ICBU peaked at $0.214. Currently, it’s struggling to stay above $0.04.

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