Todor Pichurov

American Green Inc (OTCMKTS:ERBB) Pushes Up on Massive Volume

by Todor Pichurov March 2, 2016

Enthusiasm is a wonderful thing. It can do a lot for the price of any given stock, and it certainly did a lot for the price of American Green Inc (OTCMKTS:ERBB, ERBB message board) in yesterday's session. By the closing bell ERBB was 17% up, at $0.002 per share, having shifted its biggest daily volume for the past 52-weeks. Is there any real reason for this sort of excitement, though?

The main trigger for this massive push up seems to be the conference call ERBB hosted yesterday. The other big factor seems to be a massive volley of paid pump emails that hit on Monday. It's not like ERBB has not been pumped repeatedly in the past but this last push contained nearly 10 emails sent out on the same day by a number of pumper outfits and was much bigger than the occasional tout ERBB gets every other month. Somewhat hilariously, one of the outfits that touted ERBB is called “Prepump stocks” - a horribly inappropriate name for someone who offers traders a stock like ERBB.

The fact that the pumps coincided so well with the timing of the conference call is a curious thing that might warrant extra attention from shareholders.

The new wave of buying and the record volume that ERBB hit yesterday are, if anything, an indication that traders either got lured by the promises of the paid pumpers, or simply continue to ignore the most obvious red flags about the stock and keep drinking the kool-aid that a bunch of deluded cheerleaders keep serving them on online discussion hubs.

Even if we completely disregard ERBB's colossal failure that was formerly called the ZaZZZ machine, now the American Green Machine, which sucked up millions in development costs and resulted in a quaint little novelty that has not generated meaningful revenues so far, the chief issue with the company is its toxic debt. ERBB has a heap of heavily discounted convertibles weighing over its head and all of this converts at a discount of 50% from the 12-month lowest closing bid price.

This is not some big secret, it's all in the company's reports. This debt continues to accumulate, as the company issued another $370 thousand in convertibles, under the same discounts, in its last reported quarter.

For those who are still struggling to grasp the idea of this, it means that no matter how low ERBB drops, unless it hits $0.0001 per share, noteholders will still be able to get their converted shares for at least half the price everyone else is paying on the open market.

Comments 2

1. Guest
March 03, 2016, 12:43PM

Quotes What is it you do for a living Todor? Is it VAMPIRE?CAUSE YOU REALLY SUCK!

2. Guest
March 02, 2016, 10:27AM

Quotes Well look- Todor is back- he must have finished smoking his joint!!

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