Martinas B.

Transnational Automotive Group, Inc. (OTCBB: TAMG) - Takes a Spam Route

by Martinas B. August 18, 2008
taug_logo.jpgSpammers are workaholics. Even if it's summer time when all normal people usually take holidays at some point, spammers do not rest. Transnational Automotive Group, Inc. (OTCBB: TAMG) is another victim of the ongoing penny stock spam campaign.

Based in Woodland Hills (Los Angeles), California, the company provides transportation bus services in the African nation of Cameroon.

Almost a month ago TAUG filed its quarterly report, which was quite impressive, I should say. Total revenue increased $1,230,188 or 78 % for the three month period ended May 31, 2008 as compared to the three month period ended May 31, 2007.

In addition, general and administrative expenses decreased by $13,689, or 1% over the previous year period.

On the negative side, As of May 31, 2008, the company had an accumulated deficit of $19,761,959 as well as a working capital deficiency of $9,011,829. As a result of the mentioned factors and related uncertainties, there is substantial doubt of the company's ability to continue as a going concern.

As of May 31, 2008, the company had cash and cash equivalents of $944,938 compared to cash and cash equivalents of $387,583 as of May 31, 2007

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As of 2:25PM ET on Monday TAUG's stock was trading at a price of $0.47 or 6% down since previous closing. Looking on a larger scale, we can see from the above chart that the stock didn't have a pleasant ride over the past year. Even the stock spam campaign didn't make any major impact for the stock price.

Overall, the company is indeed doing quite well. It has built a strong relationship with Cameroon's government, which could play a vital role in the future. Nevertheless, the company's stock is a risky play now.

Reference

http://www.transauto-group.com
http://www.hotstocked.com/news/transnatl-auto-grp-TAMG-11238583.html

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