PacWest Equities, Inc. (OTCMKTS:PWEI) Posing Danger to Newbie Investors

7PWEI_chart.pngNearly a year after it was first pumped by Victory Mark, PacWest Equities, Inc. (OTCMKTS:PWEI) is used by pumpers again. Novice investors should be careful.

As with most Awesome Penny Stocks (APS) pump jobs, in the second day of pumping the volume was a fraction of what it was in the first day, and the price movement wasn’t too big. PWEI closed up 2.35% at $0.087 per share on 67.8 million shares. While the activity was relatively lower, it was enough to land PWEI among the most active stocks on the OTC.

10XUII.pngWe are not certain whether OTC Markets Group is keeping an eye on past pump schemes or on APS and Victory Mark, but PWEI got the “caveat emptor” label on Thursday. In the past it took weeks if not months to take this action with pump jobs like Xumanii International Holdings Corp (OTCMKTS:XUII).

PWEI easily fits the first criteria for getting the caveat emptor designation. It is being promoted to the public, but adequate current information about the company hasn’t been made available. PWEI isn’t reporting to the SEC and there are no filings about the supposed financing and partnership.

In one of their most recent emails, the pumpers at APS are suggesting PWEI can go to $0.50 or even above $1.20. Traders should do their due diligence and it won’t be too hard to see that those claims have no basis in reality.

PWEI is a no revenue company and its only significant asset is listed as intangible. At the same time, it has nearly 1.5 billion shares outstanding, which means the market value at $0.50 would be more than $700 million.

It’s not only novice investors who are in danger. Even experienced pump players may not get what they expect from PWEI. Unlike previous APS pump jobs PWEI has already been pumped and dumped. In addition, it’s a pick coming after APS failed to pump XUII to the promised $1 mark, and the pumpers are actually breaking their promise to retire after the XUII failure.

That doesn’t mean PWEI won’t run like previous APS pumps, it just makes it uncertain, and increases the risk in playing the pump. If you are considering PWEI, extreme caution is advised.

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