Trophy Resources, Inc. (OTC: TRSI) is currently in its developmental stage, targeting merger and acquisition opportunities with recurring revenue streams. As a holding company, TRSI is interested in various sectors but has announced that an LOI is currently in negotiations. Speculations that its merger candidate is a company with $60 million in annual revenues have caused investors to give TRSI a second look after 13 years of inactivity. Although the company did not address these rumors or disclose any information about its merger, TRSI’s long-term investors are anticipating a major announcement from the company soon enough which could make this one of the penny stocks on the rise.
TRSI Stock News
Historically the company operated in the natural resources sector with a focus on the oil industry and multiple joint venture partnerships. However after 13 years without operations, in September James Canouse came on as TRSI’s CEO replacing Joseph Canouse. 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. Currently, 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 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 Services executes control investments in leading service businesses, and is now a major investor in Launch Entertainment. While these connections are far from confirmed, speculation is could make TRSI one of the penny stocks on the rise.
@SUNNYLAND24 has been waiting for TRSI to capitalize on its potential and this announcement could be a breakthrough for this stock
Investors like @AlanWeedspan could see their paytience pay off once this LOI is finalized.
Shooting up 21% over one day, TRSI is currently trading at $.0089 with a resistance at .009 and a secondary resistance at .0094. It shows a support at .0073, and is volatile considering its relatively low float of 278 million and low volume. The RSI is rising from 57 and accumulation is following a steady upwards trend. The MACD is bullish.
Responding to news, TRSI clearly has room to go. The steady accumulation is a sign of investors’ confidence in TRSI’s likely merger or acquisition which could move the stock back to October’s high at $.0146.
TRSI Stock Forecasts
TRSI is clearly an undervalued shell with great merger potential. Whether or not it forms a relationship with Launch Entertainment, TRSI will likely see momentum build over the next few weeks as its management prepares to make the company operational. Its volatility is a sign of where TRSI could go with PR from the company which has only recently become communicative under the new CEO’s management. In either case, TRSI could easily become one of the penny stocks on the rise as the company works towards finalizing its LOI with this still unknown candidate.
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