Tree Top Industries Inc (OTCMKTS:TTII, TTII message board) has had a most impressive streak of jumps recently, and investors seem really excited about its stock – but should they be?
After all, we’re talking about a company that hasn’t filed a financial report in over a year, and last time it did, said report (which covered the third quarter of 2014) was not exactly impressive either:
cash – $5 thousand
current assets – $89 thousand
current liabilities – $1.4 million
quarterly revenues – $17 thousand (a 59% drop on a year-over-year basis)
quarterly net loss – $84 thousand
It appears that the only driving force behind this aggressive jump is the announcement that TTII is in negotiations with a Hong Kong-based company called Go Fun Group Holdings Ltd. for the acquisition of assets within the next few months.
Let us reiterate that. A mediocre-looking pinksheets company that is not really in the habit of filing has exchanged non-binding letters of intent with a Chinese Ltd. company investors have no means of researching.
Looking at the company like this should pretty much explain why investing in TTII is a huge gamble. Note that this does not necessarily mean that enterprising investors can’t make money exploiting the windows of opportunity TTII’s volatility creates. On the contrary – opportunities for profitable trading may well present themselves yet.
However, make no mistake – since we know next to nothing about the company’s recent activities and the potential pitfalls waiting for investors, committing to TTII stock is nothing but a blind gamble, and should be regarded as such.
Source: Hot Stocked