15 More Red Flags For PacWest Equities

Michael Goode profile picture
Michael Goode

PacWest Equities (OTC:PWEI) is a wildly-overvalued, promoted company with little in the way of a real business, destined to fall 95% once the stock promotion ends (as I argued in my first report on the company). But far more importantly and more sinisterly, I believe that the company is being operated for the purpose of promoting itself and helping insiders (specifically, the former owners of PacWest Equities' subsidiary World Eco Source) sell tens of millions of shares, rather than being operated as a bona fide company with the goal to make products, sell them, and eventually make profit that can be distributed to shareholders. Anyone who owns shares of PacWest Equities as an investment is a fool and deserves to lose their investment. Any traders who cynically play the stock promotion game and bought shares have made a great trade the last two weeks, but many of those traders will lose not only their gains but also their principal when the stock craters in the near future. As per the policy of OTC Microcap Research, I do not have any position in PacWest Equities; I also am not aware of anyone who is short the stock at the moment. Note that as of the day this article is published (November 5th, 2012), PacWest Equities has just completed a 3 for 1 forward split and will trade as PWEID for the next two weeks (it will then revert to PWEI). All share prices and share counts in this article have been adjusted to account for the split. Articles and filings I link to in this article all use pre-split prices and share counts.

Before I lay out my case against PacWest Equities, let us review what happened after my first report on PacWest Equities was published. That report was posted on

This article was written by

Michael Goode profile picture
Note: Seeking Alpha editors have contact information for all contributors to enable ongoing communication regarding articles published.

Recommended For You

Comments (43)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.