That Marketing Solution Inc (OTCMKTS:TSTS) Spiraling out of Control
What do you need to do if you want to squish the living daylights out of a penny stock in an extremely short period of time? Not the most common of questions, indeed, but That Marketing Solution Inc (OTCMKTS:TSTS) suffered a devastating crash recently, so we might as well take a look.
As it turns out, all that’s needed is a $50 thousand pump. The now famous Wolf of Penny Stocks is the culprit and in his first alerts, he spoke about technical indicators that simply weren’t there. In his later emails, he said how sorry he was for the miserable disaster he led his subscribers into. There was a lot to apologize for.
TSTS received four massive blows immediately after the beginning of the pump and it dropped from $0.09 all the way to less than a penny. It tried to bounce, but it simply didn’t have the strength to regain the lost value and after a couple of more red closes, it finished last week’s trading at $0.004 per share. In other words, thanks to the promotion, TSTS wiped out a whopping 95% of its value in a matter of just nine days.
That’s a pretty woeful crash, but some people don’t appear to be too concerned. They are saying that the chart is “beautiful” and that TSTS is about to bounce back out of sub-penny land. In light of the horrific drop, a bounce is not impossible, but let’s not forget what happened the last time someone was analyzing the chart’s technical indicators.
There are some other problems as well. The 10-Q for the period ended May 31, for example, looks like this:
- cash: $3,238
- current assets: $74,079
- current liabilities: $622,212
- NO revenue
- quarterly net loss: $386,228
Some of you will probably be quite perplexed by the lack of revenues because in a press release from February, TSTS announced that they have received their first purchase order from an anonymous client of theirs. Sadly, we don’t know what happened to the order in question because it hasn’t been mentioned in the 10-Q at all.
There are yet more worrying facts. In March, TSTS issued two convertible notes, each with a principal amount of $137,500 and a fixed conversion rate of $0.30 per share. Last month, however, the terms of one of those notes were amended which means that it’s now convertible at a discount of 50% to the market price. TSTS also issued another convertible note several weeks ago. Its principal amount is $60 thousand at the moment, but it can grow to $360 thousand and it can be converted into stock at a 40% discount.
Make sure you have all these facts in mind before you commit to an investment.