Borislav Tonev

Trulan Resources Inc (OTCMKTS:TRLR) Lost 20%. The Pump Continues

by Borislav Tonev May 30, 2013
4TRLR.pngThe current awareness campaign on Trulan Resources Inc (OTCMKTS:TRLR, TRLR message board) started on May 28 when Stock Mister, The Stock Scout as well as a myriad of smaller pumpers received some tasty compensations to draw investors' attention to TRLR whose shares were then traded at around $0.018. Why so low? Well until about March the stock was hovering around $0.18 per share but the constant pressure of paid promotion pushed the ticker to unbelievable lows.

In any case, we're pretty sure that the third parties' aim was to lift the ticker off the ground with the current campaign and they did manage to do it. The first day of the new week brought TRLR gains of around 40% and during May 28's session they even reached $0.03 per share. It wasn't only the emails keeping investors interested, though.

TRLR, themselves jumped in announcing minutes before the start of Tuesday's session that some tests have been performed on their Iron-Gold-Platinum property in Chile and, in simple terms, they said that there's metal to be dug from every nook and cranny in their mines. They even went as far as announcing that at the current prices the revenues coming from the platinum resources alone amount to about $2.6 billion. That figure, apparently is more than enough to get traders excited, but for how long?

As it turns out, not long enough. Yesterday TRLR opened the session at $0.031 but as soon as trading began, the ticker started sliding down and by the end of the day it was at $0.02 or 21% below the previous close. Even the announcement that TRLR are thinking about acquiring some additional properties around the platinum-rich mines wasn't enough to stop the fall. And you really have to ask yourself: "Why did the ticker lose value again?". After all, the PR sounds optimistic, people know about the company and they like the figures that they see. So why did it really fall down like that?

If you look at it from a logical standpoint, there is no one else to blame but the pumpers and probably the people who pay for the whole excitement. We've seen it many times in the past and that is precisely the reason why the ticker has lost as much as 74% since it was first mentioned in the emails back in March.

Of course, some other things might have contributed. Like, for example, the dreadful financial state that TRLR are in according to the latest quarterly report. As we already mentioned in some of our previous articles, as of Mar 31 TRLR had:

  • current assets: $374
  • current liabilities: $27 thousand
  • no revenue since inception
  • quarterly net loss: $67 thousand

As we also noted, the horrendous lack of financial resources has caused some problems that are not easily identifiable at first glance. Take their office, for example. It seems to be located in a relatively nice building in Henderson, a city that is part of the Las Vegas metropolitan area. Sounds good but when you do a bit of research, like we did, you will find that at least three other small cap companies quote the same address for their corporate headquarters. We thought it somewhat unlikely that three ventures are run from the same place and so we continued digging only to find this page where Suite 200 at W. Horizon Ridge Parkway in Henderson is also offered as a virtual office. While we can't be 100% sure, we're guessing that this option is the one TRLR went for when they were looking for a place from which they can run their operations.

197TRLR_logo.pngSpeaking of which, in their latest quarterly report, TRLR say that they are maintaining an office space in Santiago, Chile, as well, from which they supposedly control the operations around their mines. We got curious to see what it looks like and it turned out that it's located in an even better-looking building in the center of Chile's capital. Diligent folk that we are, we searched the address on Google as well, and we stumbled upon yet another page. This one's in Spanish and while we're not fluent in it, we're pretty sure that "Oficina Virtual" stand for "Virtual Office".

2GROC.pngIt's up to you to decide whether this is enough of a reason to doubt the success of TRLR's operations, but in case you are considering investing in their shares, you should bear in mind that as we are writing this article, promotional emails are flying around. This time the culprits are Penny Stock Rumor, Honest Abe and Actual Gains and while they aren't as big as, for example Stock Mister, we've still seen them fail catastrophically with some of their picks. Great Rock Dev Corp (OTCMKTS:GROC), whose chart you can see on the right is a classic example.

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