Barely seven trading sessions have passed since TAO Minerals Ltd. (PINK:TAOND) executed a 1000-to-1 reverse stock split. Yet, a dozen promotional emails in support of TAOND stock flooded investors’ emails yesterday evening propagating TAOND as an investment opportunity which could easily score a double-digit rally.
Prior to the above mentioned reverse split on Dec. 7, TAON was a triple-zero stock. Following the execution of the split, TAOND resumed trading on the pink shteets quotes two days later when it closed at $0.16 shifting a total of 473 shares. Except for one session, TAOND has since performed well no the charts. Yesterday, in particular, TAOND gained 5% up to $0.21 per share. However, the fact that some 2000 shares of common TAOND stock changed hands suggests that the full-on corporate review of 2011, which was also published on Dec. 20, has failed to catch traders’ attention.
Since the latter did little to send TAOND in the stratosphere, this mission has now been undertaken by third parties who have pooled at least $37 thousand into a classic paid advertising campaign. The company will not resume trading under a four-letter symbol until the first week of January, so is it not a little early for such an effort? The answer will be clear by the time the upcoming market session comes to a close.
While paid promotions typically succeed in making stocks highly volatile, their effect is, more often than not, momentary at best. That is why, in case the company’s managers strive for long-term sustainable growth, they had better file the last two quarterly reports with the SEC as both are now long overdue. By keeping a transparent financial profile, TAOND will certainly be poised to turn the spotlight on itself.
