Fuse Sciences: Hole in One or Tiger Woods Gold Digger?

Is Tiger Woods sitting on gold that the rest of us do not know about? Or is his [still brightly burning] star lending some of its shine to a company otherwise unknown? On November 11, a little known—and little, literally—company now going by the name of Fuse Sciences

pulled the coup of a lifetime when it announced it had signed The Tiger Woods in an endorsement deal that would make the company exclusively featured on the golfer's bag. After hanging tight for several weeks, the company's modestly priced stock started kicking to the upside last Friday, gaining about 50 percent on its value. At the time of writing, DROP has come off a day high above $1 and is trading at about $0.94, twice the range of the past month. Chicken-or-egg debate notwithstanding, is the company on the cusp of making it to the big leagues on its own fundamental merits? We take a look at both sides of the argument. One side has the company riding on the coattails of the venerable, if chink-armored Tiger Woods. Make no mistake about it, in its worse PR-day, a DROP-tiered company would not think twice before engaging a star of his stature to catch some spotlight. After losing big-buck advertisers one after the other, the star may be looking to score one in his win column with sponsors, and Fuse Science's money is as good as anyone else's. The star's recent win on the

, and his gushing about his new corporate beloved can reasonably be construed to have the legs to cause a penny stock to move as high as DROP did. On the other hand, Tiger Woods is as seasoned a pro in sponsorship deals as he is with a nine-iron. Enough of a pro to refrain from pumping and dumping in order to cash in on spreads, although his deal with Fuse Sciences appears materially comprised of equity options on the company.

seems to think that Tiger genuinely believes in the company's product and sees it going places. The company's business, by the way, is energy and body replenishment products. Although it says that it has pending patents and trade secrets that “can encapsulate nutrients, actives and other molecules at far greater concentration than any time in history,” according to Hotstocked.com, the company has yet to produce any meaningful revenue action. Its 10-Q from June, as combed through by

, says the company has current assets of $300,000 on liabilities of $507,000. It has about 90 million shares outstanding, which means that today, its marked cap is flirting with $100 million. Depending on what time you look at the charts, that is 50-60 percent appreciation on its valuation in just the last several days. A move is afoot, regardless of what side you fall on this stock's bull/bear demarcation (or the chicken-or-egg Woods-DROP binary relationship as a force behind the stock move). Are you bearish on this penny stock and think it is not yet ready for the full greenback? Short it for some nice pennies for your jar. Are you bullish? Tiger Woods and his peeps may think it is still time to chase this stock to newer heights.