That Marketing Solution Inc (OTCMKTS:TSTS) Suffers A Painful Drop
Back in April the stock of That Marketing Solution Inc (OTCMKTS:TSTS) reached a high of over 55 cents per share thanks to the artificial hype created by a paid pump. Those investors that bought in at the time might have come to bitterly regret their decision because a couple of sessions later TSTS had obliterated most of its value and had fallen below 15 cents.
After sitting relatively flat for a while two weeks ago the ticker once again began forming an impressive climbing trend. From an opening price of 18 cents TSTS reached a high of $0.3425 per share in just eight sessions without registering a single one in the red. Undoubtedly a strong performance but there was one major problem – the main reason for its was another wave of paid emails.
In our articles we warned you to be extremely careful when approaching the stock. The momentum created by the pump couldn’t last for long and the massive red flags surrounding TSTS could once gain cause the stock to plunge for the bottom. This is exactly what happened yesterday – the stock opened below its previous closing price and by the end of the session it had slashed over 33% of its price.
Even after such a horrific crash TSTS still commands a market cap of $60 million. The fundamentals of the company simply cannot justify such ridiculous valuations. The latest financial report that was submitted on July 14 and covers the quarter ending May 31 contained the following numbers:
• $3238 cash
• $74,079 total current assets
• $622 thousand total current liabilities
• ZERO revenues
• $386 thousand net loss
Will the sharp reversal put an end to the paid pump though? Well, if the people who bought 26.8 million shares for $26,800 still own even a portion of that amount the promotional efforts for the stock could continue.
On July 22 TSTS announced their first international order totaling $68 thousand so the next financial report could show some improvements but is this going to be enough to offset the numerous red flags? Ultimately, it is up to you to decide.