Titan Iron Ore Corp. (OTCBB:TFER) Continues To Crash
The stock of Titan Iron Ore Corp. (OTCBB:TFER) had a great start of the month and was grasping for the $0.01 mark, but it began to fall suddenly after just 2 sessions in the green. The ticker hasn’t obliterated all the gains yet, however, it seems keen on doing so.
What leads us to this thought is the fact that, despite the optimistic press releases of the past few days, the stock is still sliding down at a serious pace, wiping out the investments of people who bought in at the peak.
On Tuesday, the company announced that they have entered into an agreemebt with Courtland Brooks, a company that provides consulting expertise for internet dating websites, who will represent them.
And while the news were rather optimistic, the stock still slid some 17% during the session. The most probable reason for this is the fact that investors have realised that the competition in the online dating sector is quite heavy and there are a lot of dating websites, few of which manage to attract that much users and get into their pockets for the services they provide.
The same happened yesterday, when TFER announced they were doing a 20:1 reverse split. The stock slid by a hefty 32% on a massive 259 million share volume, that generated $516 thousand in trade value.
Also, we are at a loss when it comes to the company financials, because the company hasn’t filed a consolidated statement after the acquisition of iHookUp, Inc. and the business model change, which happened more than 2 months ago.
The latest financials that are available are for the period ended September 30, 2013 and, to be honest, don’t look very promising.
- cash: $12 thousand
- current assets: $47 thousand
- current liabilities: $933 thousand
- total liabilities: $1.8 million
- revenues: $0
- net loss: $805 thousand
The fact that it is taking so long for TFER to make us aware of the financial state of the subsidiary that will give its name to the company with the start of tomorrow’s trading day is rather disturbing and leads us to think that the situation hasn’t gotten any rosier.
What supports our point of view is the fact that it seems there are a lot of bugs to fix with their app, judging by the comments in the iTunes store. Furthermore, a 1.5 out of 5 star rating with 1787 votes suggest the app isn’t going to attract a lot of potential buyers. Also, as we mentioned in our previous article, TFER‘s current CEO, Robert Rositano has had a catastrophic failure with another company providing online dating services, called Mobile Matchmaking (OTCMKTS:MLOV), which leads us to question his management skills.
With all this in mind, we would advise you to thread lightly and consider all the risks that come with investing in TFER.