Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


|Includes: Tanaris Power Holdings Inc. (TPHX)

TANARIS POWER- Short Selling Analysis Estimates- Short Selling price Target $ 0.30TPHX was formerly REMO which was pumped and dumped in January.

Tanaris Power (OTCBB:TPHX, TPHX message board) is being pumped at the moment. A landing page was set up by an entity called The Profit Letter and newsletters like Trade of the Week Financial and Investors Alley are making sure that the word is properly spread around. The budget stands at $600 thousand, and as is often the case, the pumpers talk about potential buyout offers from Tesla Motors Inc (NASDAQ:TSLA) and about how TPHX could soar to $5.56.

Unfortunately for them, investors don't appear to be paying too much attention. The pump gave the stock a boost at the beginning of the week when it managed to reach more than $0.70 per share. Over the last two sessions, however, it lost about 16% and it's now sitting at just over $0.60 - pretty much back where it started.

The paid pump in and of itself is a big enough red flag.

Many people have fallen for similar promotions and most of them have ended up badly burned. That's why, when they see a pump, some investors prefer to sit on the sidelines. There are a few other things that could scare them away.

The biggest problem can be found in the S-1 form filed when the company was trying to go public. As you can see from it, a couple of years ago, Luis Asdruval Gonzalez Rodriguez and Miguel Guillen Kunhardt, the members of the soon-to-be-former management team, held 75 million shares or 100% of the issued and outstanding stock. In order to have the stock listed on the OTC Markets, Mr. Rodriguez and Mr. Kunhardt sold a total of 30 million shares to some unnamed investors at a price of just $0.002 per share.

There is 30,000,000 free trading shares that could be dumped into this promotion.

If the deal with Tanaris gets completed, Mr. Rodriguez and Mr. Kunhardt will cancel the majority of their shares. The unnamed investors, however, won't need to do that. Instead, they'll have the chance to unleash a huge amount of stock on the open market and walk away with some hefty profits.

the company's financial reports doesn't really present it in a positive light:

  • Cash - $2 thousand
  • Total Current Assets - $52 thousand
  • Total Current Liabilities - $72 thousand
  • Net Loss - $13 thousand

These underwhelming numbers are most probably why TPHX is going down,, as well as the main reason why it may well continue to fall further still, until its market cap reaches more reasonable proportions.

Tanaris Power (OTCPK:TPHX) is a name that is currently the target of a penny stock promotion scheme.Tanaris Power is a stock definitely worth shorting.Little Revenue. Debts. No Business. Bright Future?

As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $70M market capitalization that this equity commands is beyond ludicrous. With $52,150 in current assets and $71,768 in current liabilities.

The purpose of this company is not to succeed, but to sell stock. The recent volume is due to overly bullish promotional mailers.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.