Share price of Triton Distribution Systems, Inc. (PINK:TTDZ) surged up on huge trading volume yesterday after the company announced the launch of a new subsidiary. The share price increase is not likely to last, however.
At the end of the session TTDZ had gained 65% from the previous close and closed the market at $0.0066 for a share. A total of 37 million shares were traded during the day which is more than seven times higher than the daily average trading volume of TTDZ.
Before market open yesterday TTDZ issued its first press release since July last year but as both the share price and the trading volume have been rising up the whole month it looks like some traders had more information about the company’s plans than some others.
According to the announcement, Triton would be launching a New “Exclusive” Global Travel Club which would be wholly-owned by the company. Further, TTDZ claims to have acquired a starting membership list of 1.5 million participants for its new service, which in turn would cost $50 for an annual membership.
That allows for an exact estimate of TTDZ planned revenue, but as a press release is not such a reliable source of information for a Pink Sheets-listed company with no SEC filings the information should still be considered very uncertain. Furthermore, TTDZ financial condition does not suggest any near-term benefit for its shareholders even if actually some revenues are reported over the next quarter.
According to the last quarter report, at the end of March the company had no cash or any other liquid assets, while its current liabilities exceeded $13 million. That explains the low market value of TTDZ stock.