Pan Global Corp (OTCMKTS:PGLO) Is in no Hurry
There’s a promotional campaign for Pan Global Corp (OTCMKTS:PGLO) and, chances are, it’s going to go on for a little while. Stock Tips set up a landing page just days after the ticker experienced its first active sessions, but instead of coming up with a special report full of pretty pictures and unrealistic price targets, the pumpers decided to take on a slightly different approach. This time, they are expressing their optimism through a thirteen-minute video in which a person by the name of Mike Statler (who says that penny stocks made him very rich) tells you that PGLO is about to explode.
As you might have guessed by now, he isn’t trying to convince you that PGLO is such a great investment just for the fun of it – the fine print under the video discloses a $1.1 million budget and, quite frankly, for that sort of money, we were expecting a more significant move from the ticker. It was off to a good start when on October 21, the price jumped by as much as 45% and things were also looking well during the second day of the pump when another 14% were added. The following sessions, however, were nothing to shout about. The ticker dropped by about 8% last Thursday and it’s been trying to get back above the $0.42 per share levels ever since. Trading volumes are high but the movement seems tectonically slow.
That’s particularly strange considering the colossal promotional budget, the amount of exposure and the torrent of news coming out of the company HQ. As we mentioned in our previous article, Stock Tips apparently saw that their pretty video is not enough to draw in the required attention which is why, they set aside $20 thousand of their budget and gave it to Invests.com who, consequently, published an amusing article on their website and plastered links to Stock Tips’ coverage all over it. More and more email alerts are hitting our inbox and yet, the ticker is refusing to move by anything more than 4%.
Even the management team have tried their hand at getting investors all hyped up by issuing no less than nine press releases in just eleven days. The latest one came out just an hour before today’s opening bell and it says that PGLO have signed a definitive agreement to acquire the 5.7 MW hydro-electric plant that they talked about a week ago. An 8-K form was also filed and if you have a look at it, you’ll see that while a major step has been made towards the completion of the acquisition, PGLO will have to take care of some things before they can close the deal.
As you might imagine, a potential failure to stick to the terms could terminate the agreement, but even so, considering the magnitude of the news, we were expecting a more significant reaction from the investors. Right now, two hours after the opening bell, the trading volume stands at around 865 thousand shares, but the ticker has hardly moved. What could be the cause for the lack of any substantial movement?
Quite a lot of factors might be playing a part, actually. People are now well aware of what a pump campaign is all about and it would appear that the regulatory organs seem to be getting a grasp as well. Awesome Penny Stocks, one of the most prominent promotional outfits got killed recently after their latest picks, PacWest Equities Inc (OTCMKTS:PWEI) and Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT), got suspended by the SEC. Traders know that if the same thing happens to PGLO, they are in for some guaranteed losses.
They might have also taken the time to check out Stock Tips’ previous picks. The most recent failure, as we mentioned, is Amarium Technologies Inc. (OTCMKTS:AMMG) and if you are one of the people who got burnt on it, you already know how dangerous penny stock promotions can be. It really is a shame that you had to learn it the hard way. Make sure you tread carefully and consider all the risks before jumping in.