Wednesday came in with clarity about PulseNetwork, Inc. (OTCBB:TPNI
, TPNI message board
), a company that jumped on unprecedented activity, seemingly without a reason. But finally, the promotional email from Center Stage
set up the stage for the next few days.
On Tuesday, TPNI added more than 13% to reach $0.17, on dollar volumes above $265,000, a relatively small sum which is nevertheless a record for the company as nearly 1.3 million shares changed hands.
We have not met with TPNI in its current name and ticker, which are active since April this year. This name change raises the first red flag, especially when combined with a promotion, a typical move to milk a novel ticker, inviting new naïve investors.
TPNI is relatively cheap with a market cap of a bit above $15 million, on above 90 million shares outstanding. But let's see how selling cloud-based solutions translates into the bottom end. TPNI shows:
- $2.9 million total current liabilities
- $489,518 quarterly net loss
So far, the company shows activity higher than that for most OTC companies, yet the earnings and reserves hardly justify the stock's exuberance.
To the credit of TPNI, the promotion is for free, which means a short campaign without a sustained effect, so there is less chance to lift the price disproportionately. But at 17 cents, there is a wide berth for gains, as this is a relatively accessible price range.
While TPNI is a curious selection and we will be tracking it, there is a wonder-ticker at a similar price range. World Moto, Inc. (OTCBB:FARE) reached 12 cents on increasing buying volumes, with good winds blowing in the sails, for now.
DubLi, Inc. (OTCMKTS:DUBL) for now does not manage to entice enough customers with its online shopping platforms. The ticker is stuck around the 8-cent range, unable to break out to higher levels after months-long sideways drifting.
If you still believe TPNI has a long way to go, keep in mind that the recent activity means increased risk. Plan your investment accordingly to be able to afford an eventual setback.