Pumpers Charge up P.M.& E INC (PINK:PMEA) Once Again

We go through quite a lot emails sent out by promoters for all sorts of companies every day. Nearly all of them contain the word “revolutionary” and it always refers to the technology that the featured company possesses or develops. The promotional effort for P.M.& E INC (PINK:PMEA) is no exception but as we have learned from our experience, it is never a good idea to trust the pumpers blindly.

So what’s so ground-breaking about PMEA and their products? Well, they are in the business of developing the ever-so-fashionable solar panels, but they claim, that their ones are a lot more efficient.

“Prove it!”, the more skeptical among you would say. Unfortunately, they can’t. While they publish press-releases every now and then stating that they have obtained some promising test results in independent laboratories and that they received some phone calls from retail and wholesale distributors from all over he world, they have yet to put the magical panels into production.

That, as you’d have probably guessed will cost them quite a lot of money. So the next logical question is: “Do they have the necessary funding to get the ball rolling?”. Although their latest financial statement is not what you’d call “very informative”, this question is answered. Here’s a recap of the most important figures found in the report that covers the fiscal 2012:

• cash: $2 thousand
• other assets: $490 thousand
• total liabilities: $0
• revenue: $0
• net loss for 2012: $8 thousand

You might be thinking at this point that the zero under the liabilities column in the financial statement is a good thing and indeed, we don’t see that very often with penny stock companies. However, when we saw that their expenses for the full twelve months amounted to just $8,000, we were starting to think that they are not even trying to make their solar panels appear on the market at all. A check into the previous annual reports reveals that the total amount spent on their operations during the last three years does not exceed $20 thousand. With this sort of expenses and with only $2 thousand in the bank we’re struggling to see how they will be registering revenues, not to mention turning a profit, any time soon.

That doesn’t stop promoters from desperately trying to pump them, though. This is, in fact, the second awareness campaign in just a week and the last one didn’t exactly go to plan. PMEA did gain some ground as soon as the emails started flying around. The next day, however, the ticker fell like a rock wiping out 46% of its value in just one trading session. Ever since then, it has been fluctuating up and down but it still falls short of the price that it reached during the height of the pump.

Speaking of highs and lows, PMEA‘s 52-week high is $0.42 per share, it was registered in November 2012 and it coincided with another promotion that was carried out for them by a number of newsletters. The potential profit was indeed big, but it was extremely short-lived which means that a lot of people who believed in the emails’ forecasts were left with empty pockets. By the looks of things, history could very well repeat itself, which is why you should consider the risks carefully before making any investment decisions on PMEA.