move continued, supported by some good news and stock alerts about the company. Are these strong enough to ensure the future movement of the stock? It’s just a matter of time to be seen.Trans-Pacific Aerospace designs, engineers and manufactures self-lubricating spherical bearings for commercial aircraft with planned product extensions. As already mentioned above, the company has just announced its China enterprise had received a special five-year corporate tax exemption from Guangdong Province and it was absolutely satisfied with the achievement. However, it seems that the positive news was not enough for Trans-Pacific and the company got featured in encouraging stock alerts.
These appeared yesterday on wepickpennystocks.com, where TPAC was given a bullish rating for potential gains. The promotional alerts will continue two days, which is a clear sign that Trans-Pacific wants to additionally pump up its stock price by paying a compensation of approx. $24 thousand for the whole pr campaign. In fact, historical records show that the company has regularly released supportive press releases during the past months, though they not always reflected positively on the stock price. Now it’s curious how long the current up move can resist?[BANNER]
According to its quarterly report Trans-Pacific has more assets than liabilities on its balance sheet, however, the deficit accumulated during the development stage period is over $2.5 million. Apart from the huge deficit, as of end-July 2010 the company has an increasing net loss from continuing operations and much higher operating expenses than the year before. Meanwhile, no revenues were generated last year and TPAC has no sufficient cash to cover the losses.
Based on these results, the management of Trans-Pacific claims “the Company will need, among other things, additional capital resources” and its ability to continue depends upon new capital sources and upon obtaining profitable operations.
