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A First Look At Major Penny Stock Scam
Pingify International (PGFY)

May 5, 2014: StockTips.com has announced Pingify International, Inc. (PGFY) as its new Pump & Dump scheme, ready for launch on Monday, May 5.  Research Driven Investor, which couldn't make a share price go up on its own to save its life, is jumping on the bandwagon, but make no mistake: this a scheme relying on the StockTips.com following. They'll all call it a "pick", but the only "picking" that has been done here is that this is the next ticker which will steal, yes steal, millions of dollars from the public.

There is no sense sugarcoating this: PGFY is a penny stock scam.  It's what it has been intended to be ever since it went public and it is likely all it can be.  Up until last Friday, insiders owned virtually every single share. Some stock was sold off at ridiculously inflated prices when word about the StockTips.com promotion leaked out, but ultimately the promotion is about making millions for a select few. Anybody buying shares will be aiding and abetting the scheme.

And we might as well call a spade a spade. StockTips.com can create volume like nobody since the now defunct Awesome Penny Stocks. That has been evidenced in several recent promotions. The key is for StockTips to make their subject company seem like a real deal, something they are very good at, using several effect propaganda media like hard mailers and promotional videos.  The impressively delusional video promotion for PGFY is already published and is very similar to videos that were created for the TGRO and most recent WPWR Pump & Dump campaigns. In fact, much of the language used by the imaginary Mike Statler -the StockTips site identifies him as an actor- is similar across all three videos.  One other characteristic is common across these videos: they are all a pack of lies.

Those that are willing to accept that a StockTips.com promotion could have a short term profit window may be able to cash in a few dollars on the upside.  But those who are looking at PGFY as an investment in a real company with actual potential are doomed to be sorely disappointed. Let's look at the chart of past StockTips promotions.

WPWR Chart 

TGRO Chart

PGLO Chart
With all three promotions, shares spiked during the opening days of the Pump & Dump campaign and then traded sideways near the highs for several days in order to attract more future bag holders, before diving down to levels whence they came. In the case of PGLO, the time spent at the highs was so short, that StockTips restarted its pumping of the ticker after a hiatus of a couple of weeks. This is evident in the second spike in the chart.

Clearly the quick dash to the highs, and the short-term lingering at those levels, shows how few actually profited by these schemes.  A look at the promoter's Past Performances makes this fact even more painfully clear.

Where PGFY differs from these other tickers is that the stock is probably already close to its artificial high, thanks to Friday's front loading.  We would not be surprised if after an initial influx of new pigeons on Monday morning, bids get whacked by the manipulators, resulting in a retrace of the share price down to Thursday's levels before possibly resuming a climb.

Looking at the company itself -it has nothing.  As in zero.  As in empty. In spite of being in business for at least two years, the company reported in its year end financials for January 2014, that its only asset was $2,209 in cash.  That's it.  Not a dime in revenues. It claims to have spent a mere $17K in research and development over the last year. That is the entire operation after a two year effort. But the most telling statement comes in reference to the two grand in the bank: Our cash balance at January 31, 2014 was $2,209. Management believes our cash balance will be enough to fund operations for the next twelve months. Excuse me?  Two grand to fund a company that is deemed worthy of a $45 million market cap as of this moment.  Could it be any more clear that there is nothing here or that this is merely a stock scam?

Then there is the smoking gun: the share structure. At the time of the  Pingify International, Inc.'s Nevada incorporation, current President, Jason Gray, was given 25,100,000 shares for $.001/share. Gray assigned his rights to the website Pingify.com and a pending patent to the Ping Me! software to the company. Gray is a Canadian and has based Pingify in Edmonton, Alberta.

Vlad Miluitin
A subsequent S-1, filed on February 14, 2012, created 25 million new shares distributed to friends and family of Gray and fellow Director Vlad Mulitin, as well as the requisite "business acquaintances".  It is the latter group that we'd bet got the lion's share of that new stock. The distribution raised $125,000 or $.005/share. THIS IS THE STOCK THAT IS BEING SOLD DURING THE PUMP & DUMP CAMPAIGN. At Friday's close of 90 cents, any of the selling S-1 participants thus far, may have enriched themselves to the tune of 17,900%.  All for a company that is intrinsically worthless.

Attorney Fred Bauman
The S-1 was filed on the company's behalf by Las Vegas Attorney Fred Bauman. Mr. Bauman represents many a dirty ticker, including recent scams APRE, ARTT, MONK and NHLI, as well as current Pump & Dump subjects NWPN, PLWY, and TNKE. It is notably rare that four concurrent Pump & Dump campaigns share the same attorney. In fact we can't ever remember seeing that occur before. Bauman seems to have suddenly become the attorney de rigueur for companies with dubious characteristics.

The company's only available app allows the user to control the flow of information from any website by “requesting” only useful and relevant data. No, we're not sure what that means either, but we think that the user gets "pinged" by the app upon availability of requested information.  The company has no revenues, even though the app has been available in some form or other for two years now.  From what we can glean out of the "Investor Kit",  merchants will pay Pingify to connect them with app users. Apparently, no merchants have done that yet.

The app is available as a free download from iTunes and an Android version is promised "soon". The company website offers some testimonials which are blatantly obvious shills. The few actual reviews found on the iTunes download page are not so generous.

Anthony Amado
Interestingly, Promotion Stock Secrets, within their own PGFY article, points out that an earlier version of the Investor Kit was produced by Equities AG, who was also listed as the contact for inquiries.  Equities AG, is a recently defunct promoting outfit, headed up by Anthony Amado, and is responsible for orchestrating many extended Pump & Dump schemes retaining the services of dozens of additional touts. Why Equities AG went out of business is anybodies guess, but given the top-of-the-food-chain status, it is possible that Amado began to feel too much pressure form the SEC.

We think that a possible new player in the StockTips schemes needs to be considered: the SEC. With their attack on Awesome Penny Stocks having led to that promoters demise, and Stock Castle promotions kept in check with regular trading suspensions of that stock pimp's tickers, we think that the regulator could have its eye on the only big gun left. Of course we won't know for sure until the first "Whoa Nelly" order is given, but given the SEC's new found revelation of its purpose on this planet, it remains a distinct possibility. If you're going to act on this Pump & Dump, then by all means, act vigilantly.