Sometimes we get stuck with stuff we don’t need or want, and sometimes instead of throwing them away we try to sell them. A garage or yard sale may work for household items, but when it comes to stocks, things get a little trickier, especially if the stock isn’t liquid.
Yesterday 22 thousand shares of TNI BioTech, Inc. (PINK:TNIB) changed hands and TNIB closed at $2.17 per share. After the close the company announced signing a letter of intent (LOI). Then pump mails started coming in. Winning Media paid the pumpers $50 thousand for their trouble.
The pumper newsletters touting TNIB aren’t new. They have a history of pumping OTC stocks. A history which traders may want to know about; a history which includes picks like LBGO and BRFH.
The tout mails are focused on the announcement made by TNIB. The company in partnership with GB Oncology and Imaging Group signed an LOI with the Republic of Malawi. This may sound like something solid to inexperienced traders. However, LOIs aren’t binding documents, and are virtually little more than a promise.
The LOI suggests that TNIB and its partner are supposed open and operate clinics providing treatments for HIV/AIDS, cancer and other diseases. This may prove to be difficult since TNIB reported insignificant assets, and opening and operating clinics can be very expensive.
- $368.99 cash
- $334,972.07 total current assets
- $1,261,316.84 total liabilities
At the current price of $2.17 the market cap of TNIB is approximately $47 million. That’s mostly due to a 1000 for 1 reverse split in February. At any rate, TNIB hasn’t proven it has anything substantial to deserve a $47 million valuation.[BANNER]
So why try to pump before you have anything significant to offer? Well, you know about that stuff people want to get rid of, and they can’t get rid of it, unless there is someone else willing to buy. Pumps and hype press releases can create a market for almost anything, because there will always be someone who will skip the due diligence and buy something useless.
