Trudy Corporation (PINK:TRDY) has been flying up extremely fast. Since last week, the stock has been gaining heavily and TRDY_chart.pngthis week it keeps climbing up. Yesterday, TRDY added 166.67% to its price and its traded volume hit the phenomenal 119 million shares.

The most curious thing here is that no reasonable explanation about the gain can be found. The corporation has not published any news since September and no one is familiar with its current activities. Though, TRDY holds the up move at some message board discussions and attracts investors.

Trudy Corporation publishes children’s books, books with read- and sing-along audio tapes and cd’s and also designs, manufactures and markets children’s musical instruments and electronics. On Sept 15, it was announced that the company’s CEO, President and Publisher along with the CFO and Vice President, resigned form their positions and TRDY shell was sold to the new owner, Stan Larson.[BANNER]

Trudy_pic.pngMeanwhile, the last quarterly report of the company shows that its financial condition is not good at all. The balance sheet contains much higher liabilities than assets and a shareholders’ deficit of over $2 million. The cash and cash equivalents of TRDY are about $179 thousand in total, which means that the company should look for additional capital.

In its 10-Q report, Trudy states it “does not have adequate office and financial staffing in place” and due to the recurring losses from operations and the deficiency in its net assets, there is a substantial doubt about the company’s future existence.

Having in mind all these facts, investors should consider only one thing – how long can the current up move survive?