Total Apparel Group (PINK:TLAG) came off burning hot over the past 2 days – heavy trading and consecutively a price burst provided an opportunity for 50% gain. If only it weren’t a random short-lived excitement we all could have made money.
The fuzz was caused by this Pink Sheets firm actually filing audited financials with the SEC. The audited information is outdated and includes years 2008 and 2009, but they also filed the info for the first two quarter of 2010 along with the registration statement.
While the early traders’ excitement was justifiable, those financials don’t look any good. We can commend the company for trying, but at this stage all there is nothing that could provide a base for market cap increase.
Nearly $8 million in total liabilities and not even $200 thousand in total assets. That’s a really heavy leverage and the auditors have stated even more creepy facts: “the Company has experienced continuing losses, has a working capital deficit of approximately $4,711,000 at June 30, 2010, has accumulated losses of approximately $46,818,000 since inception, has had recurring negative cash flows from operations and does not have sufficient resources to accomplish its objectives during the next twelve months.”
Not quite the stock of your dreams is it?
