Trophy Resources, Inc. (OTC:TRSI) is currently in its developmental stage, targeting acquisition opportunities with recurring revenue streams to maximize shareholder value. As a holding company focused on strategic acquisitions that are cash-flow positive and hold hard assets, TRSI will likely pursue development across various sectors. TRSI has just become pink current and has a float of only 278 million causing bullish investors to speculate about the company’s future. The stock has seen increasing volume very recently and could be one of this week’s high volume penny stocks. TRSI increased 75% over the last three days as speculative investors wait on news from the company. 

Catalysts

James Canouse recently came on as TRSI’s CEO replacing Joseph Canouse as CEO. At the time, the elder Canouse said he was “honored to pass the torch to the new management team” knowing that they “will grow the company to great success”. James Canouse – the new CEO – has an impressive background with over 28 years of experience in the financial markets. Until recently Canouse was the Executive VP of Here to Serve Holding Corp. and was involved with companies in the investment banking industry. In his previous positions, Canouse “was responsible for evaluating, executing and monitoring investment activity” and also served as a Senior VP of Sales for International Assets Advisory Corp.

But speculative investors are most excited about his current role as franchise owner of Launch Cumming Trampoline Park which has over 30,000 square feet of family entertainment, arcade and trampoline park. Launch Entertainment is a family recreation company which operates in this specialized industry which rakes in revenues of approximately $680 million. Now, Launch Trampolines brings in over $60 million in revenue per annum and may be looking to go public. If that’s the case then, TRSI could present an amazing merger target. 

As a clean shell with no dilution and no convertible notes, TRSI emerged from 13 years of inactivity to become current with specifically James Canouse as CEO. But more than that, Launch Entertainment announced a partnership with a lower-middle market private equity firm – Silver Oak Services Partners, LLC – which invested in Launch for the purpose of “rapid expansion across the U.S”. Silver Oak makes control investments in leading service businesses, and is now a major investor in Launch Entertainment. 

While these connections are far from confirmed, speculation is likely giving rise to momentum for TRSI which is an excellent merger target for any company looking to become publicly listed.

Media Sentiment

Credit where credit is due. Props to the one and only @AlanWeedspan for this DD.

Technical Analysis

high volume penny stocks TRSI chart

Given recent volume and interest in TRSI the stock reached a new resistance point of .0138 and is now trading at .0131. The stock’s most immediate support is at .0107 with a secondary support at .01. The 75% increase is reflected in a spike in accumulation as the RSI became overbought and is currently at 69. The MACD had a bullish crossover on October 8th and shot up to the upside where its showing no signs of a second crossover.

Should you Buy?

TRSI is a low float shell with merger potential. Whether or not its merger candidate could be Launch Entertainment, TRSI will likely see momentum build over the next few days as its management prepares to make the company operational. Its volatility contributed to its recent peak at $.0138 but building interest could make TRSI one of this week’s high volume penny stocks and could take TRSI even higher as its catalysts play out.

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