Borislav Tonev

Compass Biotechnologies, Inc. (OTCMKTS:COBI) Regains Composure

by Borislav Tonev February 4, 2016

As you probably know, Compass Biotechnologies, Inc. (OTCMKTS:COBI, COBI message board) had a rather terrible crash at the beginning of the week when in a matter of just two sessions, it lost almost 43% of its value and it dropped below the $0.001 mark. Yesterday, however, enthusiasm was relit and the stock rose back up almost as quickly as it had fallen down.

Six and a half hours of incredibly active trading resulted in 37% in gains. COBI managed to bounce back out of the triple zero levels and it stopped at $0.0011 per share. At 71 million shares, the volume wasn't quite as huge as what we saw at the beginning of the week, but it was still substantial and the buzz around the social media and message boards suggests that people are interested once again.

Nobody seems bothered about the fact that there's been no news for a month and a half and nobody seems to be paying attention to COBI's latest report which states that the company has no assets whatsoever. The only thing that is on investors' minds at the moment is the planned acquisition that was announced in November by the Interim CEO, Richard Shykora.

Are they right to be so excited, though? We'll need to wait for more updates before we can say for sure.

Some people are probably used to waiting on Mr. Shykora. As we mentioned yesterday, he was once involved with a penny stock venture called Andiamo Corp (OTCMKTS:ANDI) and in 2013, he promised that the company will published its audited financials through an S-1 SEC form as soon as possible. Almost three years later, ANDI is still using the alternative reporting standards, and its stock is glued to the bottom of the chart. Mr. Shykora's stint at Frontier Energy Corp. (OTCMKTS:FRGY)'s helm wasn't particularly successful, either.

You're the one who will need to weigh the odds of Mr. Shykora's current venture avoiding the fate of his previous ones. You shouldn't forget, however, that for the time being at least, information on the potential acquisition of the unnamed audio equipment manufacturer is scarce.

You should also bear in mind that thanks to $162 thousand worth of debt convertible at a fixed rate of $0.0001 per share, there could be a huge amount of really cheap shares hitting the open market very soon. This potential threat in particular should never be underestimated.

About fifteen minutes into today's session, COBI is traded at $0.0012 (a further 9% in the green).

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