Borislav Tonev

Penny Stock Rock and Roll Jump In On Trulan Resources Inc (OTCMKTS:TRLR)'s Pump

by Borislav Tonev June 3, 2013
7TRLR.pngOur last article about Trulan Resources Inc (OTCMKTS:TRLR, TRLR message board) came out minutes before Thursday's trading session started. We wrote about them after we received a couple of emails from Penny Stock Rumor, Honest Abe as well as a few other relatively small-scale promoters. The compensation that we calculated back then was "only" $5,000 but it still managed to give the stock a nudge and by the end of the day TRLR's shares were traded at a price, 7% higher compared to their previous close. For some reason, the newsletters went all quiet before the opening bell on Friday and the results were quick to come - 12% lost in eight hours of trading.

Apparently, the third parties weren't happy with the performance, so they called Stock Rock and Roll (SRR) and Stock Lock and Load (SLL), paid $15 thousand for a new pump, and shortly after last week's trading seized, the emails popped up in our inbox.

TRLR have been keeping quiet on the PR front since they announced that they are interested in acquiring some additional properties around their supposedly extremely profitable iron, gold and platinum projects last Wednesday, so instead of commenting on the odds of them finally starting solid operations, let's take a look at the promoters' track records and make 6HVYW.pnga few comparisons.

Among the most recent, and most spectacularly failed picks that we see in SRR and SLL's performance history are Harvey Westbury Corp (OTCMKTS:HVYW) and Feel Golf Co Inc (OTCMKTS:FEEL). As you can see from the charts on the right, both pumps resulted in some devastating losses but do these ventures have anything in common with TRLR and will any FEEL.pngsimilarities mean that Trulan are in for the same drop?

Well, indeed, the three companies are working in completely different spheres but despite that, there are still some parallels to be drawn. If you have a look through the three ventures' financial statements, you will see that they all sport a huge working capital deficit, little in terms of current assets and while HVYW and FEEL can brag about some minimal revenues, TRLR have yet to generate a dime from sales.

If you scroll further down through the reports, you will also see a large number of convertible notes that can be turned into common shares at a great discount. Why is that significant? Well, as we wrote in some of our previous reports on TRLR, they've recently issued 45 million shares of common stock in order to pay off just $4,500 worth of debt. That, you would agree is quite a lot of stock at an extremely low price. Especially considering the fact that TRLR are (supposedly) about to dig millions upon millions of tonnes of precious metals out of the ground. And you can just imagine what will happen to the share price if the people currently holding the 45 million shares decide to get rid of them.

"Still" - you're thinking - "If TRLR start their operations soon enough, everything will be fine and the ticker will recover nicely". Theoretically, yes, that could happen, but as of right now, we have absolutely nothing to suggest that mining is indeed about to start. As we saw in our previous article, there is a good chance that both their US headquarters and the one in Chile could actually be nothing more than virtual offices.

We also saw that Mr. Robert Rosner, the current CEO of TRLR is also at the helm of Pinecrest Ventures, Inc. (PCVI) (traded on the Grey Market) as well as a few other companies and apart from the questions that arise around his ability to manage numerous ventures at once, you will also need to consider the fact that when we were covering HVYW, we found that their CEO is also involved in a number of publicly traded ventures and his past is not exactly crystal clear, as well.

Do all these facts mean that TRLR will follow in the footsteps of HVYW and FEEL? No one is able to say that for sure, but when we have in mind what happened to TRLR the last times they got pumped, we don't see how this campaign can yield different results.

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