its chart movement could hardly be identified at first sight.After a stand-by price mode on Tuesday, yesterday TRTH jumped up again and its move certainly has a reasonable explanation. Trai Thien has been just promoted by The Stock Psycho, being called the “4 Cent Momentum Monster”, which obviously reflected on traders’ interest in the stock. Neither the compensation, nor the paying party was revealed, however, Trai Thien decided to fuel up the campaign by releasing some optimistic news about its business.
Along with the promotion, the company reported an 82% increase in its revenues during the third quarter of 2010 as compared to the same period in 2009. This announcement was another reason for the gain of TRTH, which gave new hopes to investors. Though, it is now interesting whether the climb will continue with the promotions being over.[BANNER]
Trai Thien USA Inc. is a Vietnam-based dry bulk shipping company specializing in transporting raw materials such as coal, ore, steel, lumber and grain within Southeast Asia. Following the chart, last year the company used to trade 3 times higher than at present, however, the current trading range of TRTH is about $0.04 per share. Despite the announcement that its revenues have increased, the company has accumulated a comprehensive loss of over $2 million and its deficit has not been covered. Besides, Trai Thien has additional losses and expenses on its balance sheet.
As of September 30, 2010, the company has $58.5 thousand available in cash and cash equivalents and suffers from negative working capital of over $12 million, whereas TRTH may not have sufficient working capital to meet its capital commitments and estimated expenses. Also, the company has defaulted on repayment of short-term bank borrowings and plans to repay them through additional capital injection from its shareholders or external financing from banks. However, there can be no assurance that Trai Thien will be able to obtain the sufficient funds on time. All these factors raise substantial doubt about the company’s ability to continue as a going concern.
