Georgi Kamburov

Tranzbyte Corp (OTCMKTS:ERBB) Rides The Hype Once More

by Georgi Kamburov September 2, 2013
6ERBBchart.pngIt seems that investors remember about Tranzbyte Corp (OTCMKTS:ERBB, ERBB message board) only when there is a major event with industry-wide consequences and its current surge up the chart is in no way different. 

Last Thursday the Department of Justice and more specifically the Attorney General Eric Holder announced that the federal government won't prevent the implementation of marijuana laws if the states create a sufficient regulatory structure. And traders went into a frenzy buying up the stock of almost every company operating in the field.

ERBB jumped up by 15% to close at $0.0022. In percentages the movement is not that impressive especially for a ticker that is well into double zero territory but traded volume simply exploded from the 14 million shares from the previous session to the massive 122 million. On Friday investors were even more active shifting 153 million shares and closing 9% up. 

ERBB might have not experienced a significant price boost but at least it managed to avoid crashing on the very next day - Medical Marijuana Inc. (OTCMKTS:MJNA) slashed nearly 20% off of their pps, Hemp, Inc. (OTCMKTS:HEMP) cut a third of theirs.

Almost the exact same thing happened when earlier this month Dr. Sanjay Gupta made public his newfound appreciation for medical marijuana and its uses. Back then the hype lasted a little longer but the following corrections returned everything back to normal. 

Without the artificially created support ERBB is bound to retrace its steps back down because its fundamentals are far from inspiring. According to the financial report for the period ending March 31 they had : 
  • $469 cash, and total current assets
  • $3.2 million total current liabilities
  • ZERO revenue
  • $200 thousand net loss
If the annual report will show any improvement remains to be seen but for now use caution when trading the company's stock. Not only is it a sub-penny but the added volatility from the marijuana industy should also be kept in mind.

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