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Last Friday, the share price of That Marketing Solution Inc (OTCBB:TSTS) closed in green for seventh consecutive day. It gained more than 10% to close the day at $0.46. Even it made a new 52-week high of $0.469 on Friday. It was during Friday’s session when the stock showed first signs of hesitation to climb further on the charts. Although it opened higher on Monday and made a new 52-week high of $0.59, the weakness was visible. It came true in last trading session, when the stock declined more than 40% to close the trading session at $0.309. The sharp decline came at a share volume of 1.02 million compared to average volume of 442,207.

The performance

Going by the current valuation, That Marketing commands a market capitalization of around $130 million. It appears overly inflated when the financial numbers as stated in latest quarterly report are analyzed. The company reported cash of $771, total current assets of $24,000 and $228,000 as total current liabilities. The revenue came at $0 and net loss was $62,000. On February 23 disclosed about its first order for manufacturing of micellized ingredient. However, the question is will it be enough to generate revenue and offset the dismal numbers.

Conversion

That Marketing sold two convertible notes worth $275,000 in the month of March. As evident from the balance sheet, the company doesn’t have funds to support its operations. These notes can be translated into That common shares at a rate of $0.30. In 2013, the company has issued 26.8 million common shares for $0.001 per share.

The decline

The sharp up move and then decline can be attributed to the ongoing paid pump of the company. That has been a target of email pumps right from the month of February. Even last month, there were as much as 20 pumps being circulated in the market.

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