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Pingify And Try to Right A Sinking Ship

May 8, 2014: How do you right a sinking ship, in this case the plight of the Pump & Dump campaign on Pingify International Inc (PGFY)?  Well you point fingers and bring up old meaningless news and hope that the public is dying to be gullible once again.

Of course simulating interest in the stock by using wash trades to gap up the share price prior to the open and supporting the bid, helps too.

This is exactly what as happened in the last 24 hours as the soap opera that is PGFY continues. In our opinion, these events have all but assured the imposition of a coming SEC trading suspension.

In case you've been on another planet, the saga began after we issued our first advisory and PGFY President, Jason Gray issued a press release announcing that the company had been advised by the British Columbia Securities Commission that the company was a subject of a promotion campaign. Feigning ignorance of the Pump & Dump, the press release included the following paragraph:
The Company and its officers and directors did not authorize or participate in the promotional campaign in any way and do not endorse it. The Company and its officers and directors only became aware of the promotional campaign when advised by the BCSC.
It says here that Jason Gray is a baldfaced liar. Now we'll tell you why.

Firstly, if you think that Gray didn't know, or at least discover after an investigation, why his stock suddenly had interest come out of nowhere when the company had not even issued its first ever press release yet, then we have a bridge in Brooklyn we'd like you to buy. The press release was obviously intended to appease the BCSC.

On May 6, the BCSC and the Alberta Secruities Commission issued Cease Trade Orders on PGFY, the same day that OTCmarkets slapped a "Caveat Emptor" tag on the stock. That is usually enough to impose a Canada-wide restriction.  So Canadians cannot own stock in a public company headquartered in Canada. Anybody else see a problem with that?

On the heels of the press release and our advisory, company CFO and Director, Vlad Milutin, in an act of bravery and honesty rarely seen among public company directors, publicly submitted his resignation, seeking an investigation by the SEC and FINRA, and all but warning the public of the dangers of owning the stock.

Not surprisingly, the press release created an urgency to unload and PGFY shares were hammered in yesterday's trading. As it was only Day Three of the Pump & Dump campaign, most of retail investors dumped their shares, giving the scheme the chance to set up for today's contrived recovery.  You see when you own most of the stock, it is easy to jump the share price.

Jason Gray's masters had him issue a series of press releases yesterday designed to try and put a finger in the dyke. These were only the second, third and fourth press releases EVER issued by the company. The releases clearly demonstrate that Gray is part of the Pump & Dump conspiracy and has probably been promised kickbacks that he will never see.  Like other CEOs before him who have allowed their company's stock to be manipulated on the promise of untold riches, Jason is about to discover that crooks never make good on their promises.  In this case the projected coming suspension in trading will make for an easy excuse for giving Jason the shaft.

In yesterday's first press release, Gray tries to instill a sense of doubt about the authenticity of Milutin's resignation: "...been made aware of a press release issued by what appears to be our CFO, Mr. Vlad Milutin." That wasn't enough to stem the tide of selling.

Gray then issued a second press release, announcing a letter of intent to acquire 80 Elements Entertainment. We perused that company's website and got the impression that it was nothing more than a bunch of kids doing contract programming. A look at the "Our Team" page is what gave us the impression that we were dealing with a group of youngsters here, probably pals of Jason who also lives in Vancouver. A series of communications with Vlad Milutin confirmed our conclusions and our suspicion that the deal was actually an old event, as did the reference to the deal in the recent 10-K filing. In fact, that filing states that the LOI had already expired, so not only was the news old, but it wasn't even valid anymore. We also managed to talk to a couple of the clients 80 Elements has listed, under the premise of seeking a reference. Those clients confirmed that 80 Elements doesn't do much more than create website for a few bucks.  Certainly not the makings of a $75 million market cap.

Even the second press release could not stop the flow of selling. Gray had no choice but to throw Miltuin under the bus.  This is when he issued his third press release of the day in which he makes the following points:
As per the S-1A filing with the SEC submitted in March 16, 2012 an agreement with was entered into on March 13,2012. As well, Pingify became an eBay partner and filed the completion of integration in the 10K for 2013. Currently, users are downloading our application that is available on the iTunes store and actively find results with eBay and
These agreements are over two years old and have yet to generate a single penny of revenue for PGFY. It seems unlikely that they ever will. Especially considering the lukewarm to lousy reviews submitted by the few who have downloaded the free app from the iTunes Store. Incidentally, the app has not been update since May 5, 2013. There doesn't seem to be much to look forward to here.
We can not speculate on why Vlad Milutin would suggest that there are no contracts or integrations as he was privy to the S1 filing of March 16, 2012 which contains the information stated above.
Cannot speculate?  Let us help you.  First of all, Milutin was deliberately misquoted by Gray. What he actually said was;
I am not aware of any contracts or other sources of revenue at this time and no assets on the books. That emails from Mike Statler of StockTips could paint such a rosy picture as to suggest these shares are worth $5.00 each, thereby giving the company a $250 million market cap, is ludicrous.
Notice how Gray conveniently ignores Milutin's concerns about Statler's comments. So why did Milutin make this statement? We'll use images from PGFY's own 10-K filing for the fiscal year ending January 31, 2014 to illustrate why.

How about this

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or this

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or this

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Perhaps these images will refresh Mr. Gray's memory and ease his mind as to why Mr. Milutin expressed his concerns.

Naturally, the imaginary Mike Statler of StockTips jumped on Gray's not-so-veiled suggestion that Milutin was dishonest and used his remarks to rally the idiots that make up his troops.

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In a subsequent press release issued today by PGFY, the company says that the factual information in Mr. Milutin's press release was erroneous.  Well first of all, the information is either factual or erroneous.  It cannot be both.  We'll go with factual. And Gray's and comments are libelous.

We'd suggest that Mr. Milutin go after these penny stock fraud artists but StockTips probably can't be found and Pingify likely won't be around much longer. Neither will your money if you insist on keeping it in this stock.