Georgi Kamburov

Tapinator Inc (OTCMKTS:TAPM) Spikes Up The Chart

by Georgi Kamburov July 8, 2016

Propelled by a new PR the stock of Tapinator Inc (OTCMKTS:TAPM, TAPM message board) soared by more than 33% and reached a price of $0.28 per share at the end of yesterday's trading. The jump in share price was accompanied by a similarly impressive increase in interest with investors shifting over 300 thousand of the company's shares during the trading day, the biggest daily volume registered by TAPM for the past seven months.

Tapinator is a developer and publisher of mobile games for iOS and Android devices and yesterday it issued a corporate update for the second quarter for the year. According to PR during the period the company has launched 31 new games, bringing the total number of its active revenue generating games to 244. Both the Daily Active Users and Monthly Active Users have continued to show triple-digit growth on a year-over-year basis. In the PR the company stated that the financial results for the second quarter will be releases by mid-August.

TAPM finished the first three months of the year with:

• $1.49 million cash
• $1.86 million total current assets
• $1.43 million total current liabilities
• $849 thousand revenues
• $402 thousand net loss

Compared to the same period in 2015 the company was able to double its revenues for a year-over-year increase of 106%. Despite this impressive achievement the operating income at the end of the quarter showed a drastic decline - from $62,200 a year ago to just $6,893.

Still, TAPM remains in a far better financial state than the majority of the other pennystocks. The encouraging year-to-date results even made the company confident enough to increase its 2016 revenue guidance to $4 million - 4.5 million, up from the previously announced range of $3.7 million - $4.3 million.

Jumping into the stock without taking the red flags into account could be quite dangerous, though. Last year TAPM raised $2 million by selling a $2.24 million 8% senior secured convertible note with a conversion price of $0.205 per share. In addition, the company also issued warrants for the purchase of 10.9 million shares with an exercise price of $0.30 per share. If TAPM's stock climbs further up the chart the warrant holders could become more and more tempted to exercise them.

The fact that the company is spending money to get its stock hyped up shouldn't be overlooked, either. Alongside the PR issued by TAPM yesterday the company was also featured in a press release made by FN Media Group LLC. If you scroll all the way down to the bottom of the article and read the disclaimer you will see that for its services FN Media Group has been paid the sum of $3,900 by TAPM

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