A landing page for TANARIS POWER HLDGS INC (OTCMKTS:TPHX) was created by a group called the Profit Letter. Along with the landing page, there are other firms that are in process of circulating pumps to support the stock. The budget of the promotional pumps is $600,000. The pumps are focusing on the potential buyout deals from reputed firm Tesla Motors Inc (NASDAQ:TSLA) and the reasons on the basis of which TPHX could surge to $5.56.
The ongoing pumps are going unnoticed by investors. The promotional emails supported the stock price of Tanaris initially when the price jumped to $0.70 per share. However, in last few trading sessions, it had declined sharply and reached to the levels from where it started. In last trading session, it managed to close in green with gains of more than 5% to close the trading session at $0.671. The gains came at a share volume of 486,290 compared to average share volume of 181,514.
Last week, Tanaris announced that they commenced the development activities of a battery that is expected to be 40% more powerful than the existing models. However, the news failed to boost any optimism among the investors.
The red flags
People are not willing to put their money in Tanaris stock as they fear that the stock price may drop drastically due to ongoing pumps. Moreover, the latest 10-Q suggests that the company entered into a securities purchases deal in January. As per it, the firm was expected to issue some shares and make a payment of $350,000 in seven installments to purchase the lithium-ion battery business. It managed to pay first two installments in January and February but then they didn’t make any payment indicating a default under the deal. Therefore, there is no surety as of when the announced deal will be completed.