PUMPs & dumpS
Red Flagging DANGERS In The Penny Market
ERBB Uses A Full Court Press
To Dump A Pile Of Stock
Transbyte Corporation (ERBB) is ready to undergo its fifth Pump & Dump campaign of the last 12 months and with 1,885,868,494 shares reportedly issued and outstanding as of January (and that's not even on a fully diluted basis), it is unlikely that this will be the last attempt at what promises to be a major a dump-a-palooza. We even think that the number of shares is already significantly greater than the number previously reported and is only going to get larger until the inevitable reverse split sets in.
It would not require a leap of faith to believe that the printing presses at ERBB are churning out stock 24-7. With the appetite for pretend medical marijuana related stocks out there right now, scams like ERBB are a popular pyramid scheme, and the perpetrators of these scams can't help but feel the need to feed the mice (that's you). The dilution is quite evident. According to the latest financials filed by the company, year over year stock dilution was at a steady pace of 200%. That's a lot of stock added to the kitty. And with millions (and growing) of preferred shares out there yet to be converted, in addition to the millions of dollars in convertible debentures and other debt outstanding, it is likely that the common shares will at least triple again over the next year. After all, that's what questionable debt in these phony companies is for - to create more shares to dump onto the street. And with only $1,269 in the bank, the onus for more borrowing and more inevitable conversion to more stock, is certainly there.
The justifications for all this phony debt and loans are transparent at best. The company still does nothing, not having earned a single dime in revenue in 2012, in spite of having almost $400K in operating revenue over the last 6 months of 2012. What exactly was all that money for?
The press releases are fluff at best, with the obvious intent to create a facade of business activity and geared towards creating interest in ERBB stock. Headlines announcing hires, appointments, opening of branch offices and offering accolades do nothing to show that the company is actually generating revenues. Because it's not. That's not what the business of ERBB is intended to be. ERBB is intended to be an ATM machine for the perpetrators of this pyramid or Ponzi scheme, call it what you like. That much has to be obvious to the most ardent supporter of the Pump & Dump campaigns. As evidence of this intention, you only need consider the actions taken on the company's share structure:
June 14, 2007: the Company consolidated its authorized and outstanding common shares at a 1 for 1,000 ratio. After the stock consolidation the Company had authorized 870,000 common shares and 677,416 common shares outstanding.
May 22, 2008: the Company increased is authorized common shares to 125,000,000.
June 9, 2010: the Company increased is authorized common shares to 750,000,000.
May 29, 2012: the Company increased is authorized common shares to 1,350,000,000.
December 14, 2012: the Company increased is authorized common shares to 1,995,000,000, a 229,300% increase in 5 1/2 years, with nothing to show for it. Want to bet that all the authorized shares get issued?
Can you see any reason why this pattern of public investment destruction is about to end at anytime in the future? No, what is extremely likely is that a reverse split is coming and the whole thing will start over again. We could see that probability occurring in the next quarter or two, especially in light of the full court press that has been chalk-boarded for Wednesday.
In order to generate a big pay day, 21 newsletters started pimping away on Tuesday evening and more are likely to come on board before the open. This is a sure sign that a major dump of new stock is headed for the street tomorrow.
The best part is that the touts can't even provide a reason for tomorrow being "the day" that action will ramp up on the stock. They certainly can't play off of ERBB's obviously bogus announcement on Tuesday of the formation of "The Altitude Organix Network", whatever that is. All they can express is "a feeling that tomorrow is the day". Well yeah, that is because all the touts are pimping at the same time. What do you think is going to happen on Thursday or Friday when the pimping comes to a screeching halt and there is a simultaneous rush for the exits?
Now some will point to the 2 cent level ERBB achieved for a brief period in February as a yard marker for Wednesday's push. That may be a level the delusional can target, but it is highly unlikely that the share price will revisit those lofty prices, even for the brief period it was there previously. We conservatively estimate that 500,000,000 shares were dumped onto the street during the first quarter of this year, many of whom are currently enjoying losses of better than 50%. So now, not only will the share price have to come up against the resistance of insider selling, but throw in those players who are looking to take profits and/or cut losses.
Yes, there will be volume in ERBB tomorrow, but we expect that it will be near impossible for the stock to close in the green and we are betting that it will close on Friday much lower than where it closed on Tuesday.
