TEMN-logo.pngTEMN-26.01.11.pngBooming trading activity took place yesterday at the market, as a result of a single trade alert for Team Nation Holdings (OTC:TEMN).

More than 130 million shares were traded, which is more than any promotion or company announcement has managed to achieve in the past. No, given that there are no upcoming developments that should inspire more confidence in investors it is likely that the price will drop as fast as it went up. High volatility is the usual state for Team stock and is favored mainly by short term speculative investors.

Of course, the lack of stability has its reasons. Team Nation Holdings is a management and services company in the real estate industry. Since the latter was heavily affected by the crisis, it is no wonder that the company had to close two of its subsidiaries and suffer a stock price decline of $15 per share to $0.0005 last December. Bad figures are also included in the financial reports of the company.

Even, though, Team Nation is a service provider, not a producer of goods, the last 10-Q report indicates the $9.3 thousand total current assets, together with an accumulated deficit of $5.5 million. Revenues are declining on a yearly basis, and there is nothing to back up any investor who decides to buy company stock. Except if the idea is to sell them in the next few hours or days. [BANNER]

Another fact of particular interest is the source of revenues for the company. The usual clients of Team Nation are small companies who need the professional expertise of Team experts. The actual truth of the matter is that from July 2009 to Sep. 2010 the only client and source of revenues for the company was CalCounties Title Nation. Now, it is not the number of clients that Team had in this period, but the fact that CCTN is actually owned by the Team board of directors.

All of this is indicated in the 10-Q report covering the first three quarters of 2010. Since there are no announcements about additional clients, the existence of Team Nation actually depends on the development of CCTN. Which is no doubt an inspiring opportunity for speculations and pump and dumps for short profits, but a very unappealing territory for a serious long-term investor.