Zenosense Inc (OTCMKTS:ZENO): Time To Take Profits And Run

Sometimes you've got to take profits and run – especially in the OTC space. Pink sheets are notoriously tough on traders for a reason, and while it's nice to think a bull run is set to continue, and easy to convince yourself that a post run dip is nothing more than a correction, nothing is more important knowing when to bow out.We think it's that time right now in Zenosense Inc (OTCMKTS:ZENO).We've actually covered this stock in the past, and most recently as part of this piece at the end of March. At the time of that coverage, Zenosense was trading for a little over $1.2 a share. In the week subsequent, the company ran to a little over $3.8 a piece – a more than 215% run in a matter of days.It's since corrected to $2.10. For anyone that's still in the stock, that's still a 75% gain, and we think it's time to shut down any exposure.So what's changed?The company just picked up Skull and Crossbones from OTC. For those that aren’t familiar with this term, it's a Buyer Beware warning that basically says OTC has identified something's not right, and that there's considerable risk associated with the company's shares. What it really means (not always, but generally) is that the company is subject to some degree of nefarious promotion. Combine the suggestion of promotion with the fact that the company has run up to the tune of multiple hundred percentage points on nothing more than some vague updates as to the progress of its technology over the last couple of weeks, and it looks valid.As a brief (but now not all that relevant) introduction to the company, it's trying to develop a piece of kit that make detection of cardiac arrest risk more accurate, cheaper and more accessible. The tech is in its early days, however, and there's not too much in the way of information as to exactly where it is in the development process.In the interest of full disclosure, and for those that missed our previous coverage, we were willing to give the company the benefit of the doubt at the end of March. We've seen it run up before on some technology and development related updates, and we saw no reason why the same sort of updates couldn't induce similar action.We also felt (and still feel) that this company does have some potentially game changing technology on its hands (at least in concept), and that if said technology was to hit the shelves, it could justify a far higher market capitalization that Zenosense currently commands.Right now, however, there's just not enough reward in it to justify the risk. If there's promotional activity behind the recent run (and we're now betting there is, in light of the OTC Skull and Crossbones), then the current price just isn’t supportable, and we're going to watch the stock settle back into the pennies at best. At worst, we're looking at a suspension, or outright delisting, and an offloading of the technology to another company that might make better use of it.Bottom line here is that right now, there's just nothing in it for an investor. Anyone with a degree of common sense will pull out of a position and avoid becoming a bag holder in the process.The money that benefited from any promotion is already out – take our word for it – and anyone holding in anticipation of a longer term successful commercialization of the MIDS technology on which the company's latest updates (and its fundamental value) rest, is going to have to sit through round after round of dilution before their strategy bears fruit.Practically no cash, around half a million dollars in liabilities, and no product set to hit shelves anytime soon.The experienced traders out there are already on the sidelines.We will be updating our subscribers as soon as we know more. For the latest updates on ZENO, sign up below!Disclosure: We have no position in ZENO and have not been compensated for this article.