Pingify International (OTC:PGFY) is a name that I believe is currently the target of a penny-stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. Today's dump is no surprise. I also believe that Pingify International is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent.
Little Revenue. Debts. No Business. Bright Future?
As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $43M market capitalization that this equity commands is beyond ludicrous. With $300 in total current assets and $52,576 in current liabilities in the recent quarter it is clear they are not going in the right direction. I find it difficult to believe that the company can make any moves in the right direction. They really can't and its my suspicion that the purpose of this company is not to succeed but to sell stock. The recent volume is due to overly bullish promotional mailers.
Picture of PGFY chart
You can see that trading in Pingify International started seeing really big volume on May 5, 2014. I first received an email from Stocktips.com on May 5, 2014 at night. The emails linked to a landing page with a bullish video of Pingify International Inc. Email campaign had a disclosed budget of 6,500,000. Coincidence with the time of email campaign and volume in Pingify International? Absolutely not.
StockTips links to a promotional video in their emails. It is a very overhyped video on how you could of made so much money on their past picks. What they forget to tell you is if you invested instead of traded it you most likely lost everything you invested. It's a very misleading video.
You can see obviously someone is interested in increasing public awareness for Pingify International. Most likely the insiders who have 25,000,000 free trading shares in Pingify International Inc.. Why else would someone spend up to $6,500,000 to increase public awareness? At these levels those are worth 20,000,000+! It is worth it to them because if they can bring in buyers and liquidate their shares around these prices that can mean millions in profits! Running pump and dump schemes is a lucrative business and that is why we see it way too often. My job is to alert you.
StockTip Promotion History
This stock promotion group tend to couple their email promotion with a nicely done promotional video.
Disclosed Budget: $20,000
Shares Outstanding: 31,173,661
Promotion High: $.59
Market Capitalization at High: $18,392,459
Percent Drop: 77%
Disclosed Budget: $1,100,000
Shares Outstanding: 155,550,000
Promotion High: $.96
Market Capitalization at High: $149,328,000
Percent Drop: 75%
Disclosed Budget: $2,500,000
Shares Outstanding: 42,728,159
Promotion High: $1.59
Market Capitalization at High: $67,937,772
Percent Drop: 84%
Well Power, Inc. (OTCQB:WPWR)
Disclosed Budget: $2,500,000
Shares Outstanding: 107,931,034
Promotion High: $.86
Market Capitalization at High: $92,820,689
Percent Drop: 82%
Recent SEC Halts
The SEC is finally cracking down on pump and dumps lately. Here is a list of big stock promotions that have been halted recently. I believe Pingify International Inc. has a chance to be next. Stocks that get halted tend to reopen 2 weeks later down 70%+. My latest report on Imogo Mobile Technologies Corp was halted five trading days after my report was published. Makism 3D Corp. and Life Stem Genetics were two pumps that halted after my articles as well.
- Imogo Mobile Technologies Corp. (OTCQB:IMTC)halted February 19, 2014.
- Center Energy, Inc. (OTC:CNTO) halted February 11, 2014
- Makism 3D Corp. (OTCQB:MDDD)halted December 13, 2013.
- Guar Global Ltd.(GM:OTC:OTC:OTC:OTC:GGBL) halted December 6, 2013.
- Neveda Gold Corp (GM:OTC:OTC:OTC:OTC:NVGC) halted November 27, 2013
- Life Stem Genetics Inc (GM:) halted November 25, 2013
- Sovereign Lithium (GM:OTC:OTC:OTC:OTC:SLCO) halted November 15, 2013
If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have shown you that the reason for the promotional mailers indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. I believe the huge unusual action in Pingify International Inc makes it at risk of a SEC halt. The stock is however already down a lot. This could bounce but in the end it will end up just like all their last picks -- near 0. If you were burned on this one, I recommend learning from it.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.