Pan Global Corp (OTCMKTS:PGLO) Stays Strong on the Second Day of the Pump
In case you haven’t heard already, Pan Global Corp (OTCMKTS:PGLO) is the target of a $1.1 million promotional campaign. And it seems to be going strong. The beginning of the week saw the first active trading session for the ticker and during it, it managed to jump by as much as 45% registering a volume of around 4.4 million shares. While not quite as impressive, PGLO‘s performance was also admirable yesterday when it managed to gain another 14% while the total trade value amounted to nearly $1.4 million. When the closing bell rang, the price stood at $0.415 per share which means that the current market cap is precariously close to the $190 million mark.
That’s quite a lot for a company that, according to the latest 10-Q, has less than $10 thousand in cash reserves, nearly $400 thousand in liabilities and no revenue since inception, but it is also, we reckon, too much for a venture that is being touted by Stock Tips and their very own Mr. Mike Statler. As we mentioned yesterday, he was being quite generous with the praise of another small cap company – Amarium Technologies Inc. (OTCMKTS:AMMG), but all his enthusiasm led to, was a massive drop in the value and quite a lot of unhappy investors.
Still, we decided to see what Mr. Statler has to say about PGLO and find out if there’s even a grain of credibility to be found in his overly optimistic claims. Right from the get-go, we should say that we’re not so sure. For example, Mr. Statler talks about three hydroelectric projects that PGLO has in India. We checked and double-checked the about us page on their website, all the filings and press releases but we could find traces of only one planned acquisition of a hydroelectric plant as well as a lease agreement for a future hydroponic facility. We’ve no idea where the information about the other two projects comes from, but it could get very interesting if the management team announce them in the near future.
Having talked at some considerable length about the population of India, its problems and the solutions that will be provided by PGLO, Mr. Statler goes on to say (repeatedly) what the company’s greatest advantage is. According to him, the biggest virtue is the fact that an entity controlled by the Indian government has already agreed to purchase electricity from the plants that PGLO will (supposedly) operate one day. We must say that he does have a point on that front. The company said in its filings that the contract is already in place but, while this is definitely a plus point, we mustn’t forget the fact that the single power plant discussed so far is not yet finished. We should also keep in mind that the 8-K form told us that once it’s complete, PGLO will need to close the acquisition and that this won’t happen until the second quarter of 2014. That’s quite a lot of time in Pennyland and lots of things could go wrong.
The main worry at the moment is the share price. PGLO tried to spice things up a bit yesterday when they issued not one, but two press releases and it’s clear that they managed to do it. The thing is, the colossal amount of hype and the huge market cap could put the ticker under quite a lot of pressure.
More and more people will start to look into the company and see that the small business building that serves as their headquarters also hosts the offices of a number of small cap enterprises like World Series of Golf, Inc. (OTCMKTS:WSGF), WLMG Holding (OTCMKTS:WHLX), Pacific Software Inc (OTCMKTS:PFSF), Ironwood Gold Corp (OTCMKTS:IROG) and Cinjet Inc (OTCBB:CINJ). They’ll wonder why is that and they’ll see that the offices in the aforementioned building are offered as virtual solutions. They’ll continue on their due diligence and they’ll see that the Mumbai HQ listed on PGLO‘s website is also offered as a virtual office. Generally speaking, the investors who do a proper research will see that there are quite a few red flags around the company. Make sure you consider all of them before deciding on your next move.