Portlogic Systems Inc. (OTCMKTS:PGSY) Pumped to Over $0.90
The penny stock promotional industry suffered quite a blow a couple of years ago when the SEC decided to step in and do something about the horrific losses incurred by many inexperienced investors. Numerous stocks were sent to the exile of the Grey Market and some of the promotional outfits were forced to shut down for good. The pump business has been on shaky grounds ever since, but it seems to be experiencing something of a renaissance. The latest in a very long line of promotions for Portlogic Systems Inc. (OTCMKTS:PGSY), for example, is working a treat.
It’s a big one. Eric Dickson from Breakaway Stocks received a relatively small portion of the $200 thousand per week budget in order to write a long and colorful landing page. Caesar’s Financial Daily also got a piece of the pie and they helped spread Mr. Dickson’s optimism around with the power of email alerts.
The promotional materials try to convince you that PGSY is “the next Skype” and the stock performance from the last couple of days suggests that people genuinely believe this statement. The ticker first surged on Tuesday when it gained 24% and yesterday, after another 6% jump, it stopped at more than $0.92 per share.
We’re pretty sure that the people who bought in because of Mr. Dickson’s promises of wealth and fortune are quite pleased to see the stock inch its way closer to the $1 per share mark and, of course, there’s nothing wrong with that. As we’ve established numerous times on these pages, however, acting on promises coming from random people around the internet isn’t always the best strategy.
And certainly, once you open PGSY‘s latest financial report, you’ll see that “the next Skype” description might not be entirely accurate. Here’s a summary of the figures recorded during the twelve months ended May 31:
- cash: $1,156
- current assets: $63,473
- current liabilities: $1,118,203
- revenues: $122,768
- net loss: $39,650
When Skype was on its way to become one of the world’s most widely used VoIP service, its popularity was growing by the minute. Things are quite a bit different at PGSY‘s camp. In fact, the revenues for the most recent fiscal year are a whopping 84% down from the ones logged twelve months earlier. Despite the hellish drop, Jueane Thiessen, PGSY‘s sole officer and a director at UOMO Media Inc. (OTCMKTS:UOMO), forgot to say what has gone wrong.
Whatever the reasons, the colossal decrease in revenues should definitely be borne in mind and the same goes for the convertible debt. Once again, Ms. Thiessen wasn’t particularly generous with the details when she was putting together PGSY‘s annual report. We do understand from the 10-K, however, that a few months ago, the company issued no less than 2,250,000 shares of common stock as a conversion of debt at a rate of just $0.02 per share.
Thanks to the paid pump, these shares are now worth a little under $2.1 million (more than ten times what the third parties pay for the pump every week).
