That Marketing Solution Inc. (OTCMKTS:TSTS) Jumps On Tout

Trader’s Choice has been rather busy lately. One of the “research reports” it published on October 2, 2015 has managed to push That Marketing Solution Inc. (OTCMKTS:TSTS) from $0.0002 all the way back to $0.0015. The only question is – how?

Perplexingly enough, investors seem to be taking its research reports seriously, in spite of the fact that said reports are obvious touts. Suffice it to say that TSTS is not the first mediocre OTC Markets ticker to make amazing gains these last few days, pushed up by a similar report.

You certainly have to give it to Trader’s Choice – they seem to be excellent at convincing investors to commit with praise alone. However, it should be clear to anyone observing these jumps that the gains made are ephemeral.

Why? Because almost all of the touted companies, TSTS included, have next to no achievements to their name. Case in point – TSTS‘s latest financial report showed that at the end of the last reported quarter it had:

  • Cash – $3,238 (NUMBER NOT IN THOUSANDS)
  • Current assets – $74 thousand
  • Current liabilities – $622 thousand
  • NO SALES
  • Quarterly net loss – $386 thousand

And, as we have warned every time TSTS rears its head, the company’s mediocre achievements to date are just one of the many threats to investor value that traders need to look out for when considering this stock.

Another significant one is toxic dilution. In March 2015 alone, TSTS has issued two convertible notes, for a total of $275 thousand, that convert at a fixed rate of $0.30 per share. One of those notes were amended to convert at a discount of 50% to the market price. Another note for $60 thousand was issued a while back, with provisions allowing its holder to turn up to $360 thousand into TSTS stock at a 40% discount.

Investors should definitely take into account these circumstances, and not just blindly rely on obviously biased “research reports” when making up their minds about investing in OTC Markets penny stocks.

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