$THRR: Fact or Fiction?

March 18th, 2010 at 9:30 am Posted by

Unless you haven’t fallen into the Wall Street gutter that is penny stocks lately, The Dean’s sure you’ve at least heard of $THRR. In fact, in the just the past two weeks, $THRR has made The Dean’s List of Honor Roll Stocks twice.

Thresher Industries, Inc. (OTC: THRR.PK) engages in the production and sale of conventional cast aluminum and reinforced metal matrix composite aluminum alloy components for various customers and applications in the United States.

For The Dean, $THRR is reminiscent of one of his favorite books, Atlas Shrugged, because the company’s metal alloy product seems comparable to Rearden Metal, praised to be “the strongest and most reliable metal in the world” (in the book, which The Dean highly recommends for his students to read). But, Ayn Rand‘s novel is fictional, which may or may not be the case with this company.

On Monday, $THRR announced that its Board of Directors approved the sale of the company. This news was followed by an update on Tuesday, telling the world of penny stocks the sale for a price of $0.01 for all outstanding shares was agreed upon, which is five times its current value, by the way.

Yesterday, $THRR received more exposure from BeaconEquity.com issuing an alert for this sub penny and, later, the company issued this press release telling us that $0.01 will be offered per share “for any and all outstanding shares…before April 10, 2010.”

Now that you’re up to speed, The Dean’s thinks that $THRR seems to have real contracts with real companies. But, based on the string of PRs over the past couple of weeks, in particular two almost identical releases Tuesday and Wednesday, and paid promotion from PennyTrader.com (500,000), OTCReporter.com (400,000 free trading shares), and OTCPicks.com ($8,000), it appears that the company’s management is trying to hype up and inflate the stock price.

This prompts The Dean to question, “Why are they doing this if there is a real buyer at $0.01/share?” And who is this buyer—why hasn’t their name been mentioned?

Based on the “fact” that $THRR plans to complete this sale before April 10, 2010, The Dean thinks this saga could loop like cheesy elevator music for the next couple of weeks. Although many students may already have their minds made up about $THRR, The Dean urges his students to heed this stock market lesson with cautious optimism.