The Pumpers Are Still Trying To Hype Portlogic Systems Inc. (OTCMKTS:PGSY)
Last Thursday the stock of Portlogic Systems Inc. (OTCMKTS:PGSY) bounced and added 13% to its value for a close at exactly 66 cents per share. On the very next day, however, the ticker resumed its rapid slide towards the bottom of the chart by closing 16.6 % in the red at $0.55. Is there a chance that the ticker might stabilize?
Well, the pumpers are still here. Two weeks ago a paid pump was launched for PGSY with the creation a landing page. The disclosed budget was $200 thousand per week and the artificial hype it generated helped PGSY reach a high of $1.34 per share on September 24. That was as far as the stock would go though as it began to rapidly crash down the chart. Currently those investors who believed the words of the pumpers and bought in at the stock’s high could be facing losses of nearly 59%.[BANNER}
The disastrous performance was enough for the landing page to be shut down but that doesn’t mean the promotion is over. Yesterday 8 email alerts were distributed by a number of pump outfits with the disclosed compensations ranging from $5 thousand to $25 thousand. Nearly all of the emails talked about the potential of PGSY to bounce once again, which indeed could happen.
The problem is that the company cannot really justify even its current share price. The latest financial report filed by PGSY is the annual for the fiscal year ended May 31 and in it investors will find the following results:
• $1156 cash
• $64,473 total assets
• $1.18 million total current liabilities
• $122 thousand annual revenues
• $39,650 annual net loss
In addition to the lackluster financials, let’s just say that the revenues experienced a 84% decline compared to the previous fiscal year, investors have to also worry about the massive dilution of the common stock.
In our previous articles we already warned you that after a 1-for-750 reverse split performed in March PGSY were left with just 275 thousand outstanding shares. At the end of September that number had already surpassed 33 million shares. 2.25 million of the shares were issued as a conversion fo debt at just $0.002 each.
With the pumpers still active and the plethora of red flags any trades involving PGSY‘s stock must be preceded by extensive research and careful planning. Also, keep in mind that due to the pump OTCMarkets decided to mark PGSY‘s profile page with the skull and crossbones sign.
