Generally, the burnt fear fire, but in the case of TagLikeMe, Corp. (OTC:TAGG
, TAGG message board
) investors have a fresh opportunity to get burned. The ticker, exhausted from promotions, made a comeback among the most active stocks, adding close to 80% in a single day. That's not beyond belief for a stock trading for cents, but it may lead to sharp movements on renewed buying and selling interest.
We said goodbye to TAGG once its promotions ended at the end of last year, but now there is a need to brush up on the company's achievements. In short, TAGG holds nothing of interest to make its stock rise beyond the days of a promotion. TagLikeMe relied on tagging technology to make its way in online business. This, however, has not led to any revenues and the company's financial situation does not look rosy:
- $315 cash (Down from $4,000 reported in previous periods)
- $1.27 million current liabilities
TagLikeMe tries to create an alternative to search algorithms by including the human factor of news selection to achieve more relevant results. Still, the company's position among other tagging services is still just a future plan.
So far, TagLikeMe has burned through a lot of borrowed cash, issued new stock at $0.001 par value and used paid promotions to blow up its stock disproportionately, to 40-cent highs. This is within the powers of Awesome Penny Stocks, a most prominent paid pumper with large budgets, taking tickers for a long ride and sending them to record prices. But only days after the APS pump, most stellar choices are down in the dumps. The losses exceed 90% and most often a lot of investors are left holding millions of worthless stock. Beside this, the company managed to authorize one billion shares at $0.001 par value, with the potential of new issues further diluting the company's value.
The latest spike for TAGG to 4 cents seems dramatic measured against the past few days, but in the longer run, it is still a tenth of the highest price when APS intervened. With more than 330 million shares outstanding, daily selling volumes could bring this ticker to even lower levels quickly.
We could not explain the sudden spike in interest for TAGG, although other tickers show a similar brief recovery. Other APS picks such as World Moto, Inc. (OTC:FARE) attracted the attention of buyers long after the pump was ended. Still, the effect of the Awesome Penny Stock newsletter was to wipe out more than 70% of the ticker's value and leave thousands of investors to absorb the losses. The new climb of FARE is only the exception that proves the rule.