The last month has been a volatile one for Tranzbyte Corp. (OTCMKTS:ERBB, ERBB message board). The roller coaster ride is still on for the company it seems, as the share price suddenly reversed its fall and ERBB closed 21% up on Wednesday.
There was no immediately obvious trigger for the sudden green move. There have been no news releases coming from the company for a week now, so the reversal cannot be attributed to another batch of optimism coming from ERBB. Technical analysis aficionados may note that prior to the jump the price pierced the 50-day moving average, which may have served as a signal for those who believe technical analysis is still relevant when looking at the largely unpredictable pot stock sector.
ERBB is on the cusp of releasing its ZaZZZ vending machine – a proprietary build that should integrate into dispensaries and ease the workload of cash clerks. There has been quite a lot of excitement surrounding the project as it is the flagship product of ERBB. The vending machine is reportedly still in production but the company promised to release at least a couple of actual photos of the finished product next Monday.
It could be that investors have sufficient faith in the company despite its thinly spread financials (last reported for the quarter ended December 2013) and decided to chant the mantra that is particularly popular with penny stocks – ‘buy the dip’. It will be a while before ERBB reports any figures containing ZaZZZ-derived revenues as those could hypothetically appear in the company’s next annual report due by the end of September. Quite a bit of a wait but there will no doubt be plenty new press releases before that, to keep everyone on the edge of their seat.
A Monday reveal of the machine that goes as announced and is backed up by sales figures shortly after could do a lot for the stock but failure to deliver on the promises of the pending launch could push the stock just as far, only in the opposite direction.
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