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.
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.
|Attorney Fred Bauman|
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.
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.