Puget Technologies Inc (OTCMKTS:PUGE) Pops out of the Blue

Puget Technologies Inc (OTCMKTS:PUGE) was surrounded by the sound of silence. It really was eerily quiet. So much so, that between June 10 and July 10, the stock managed to log a cumulative dollar volume of just $41 thousand. Yesterday, the silence was abruptly broken.

In a matter of just six and a half hours, investors managed to trade more than 3.3 million shares which means that the dollar volume at the end of the day stood at just under $195 thousand (nearly five times the amount registered during the previous month). PUGE also painted a rather big green candle on its chart. An intraday high of $0.09 per share was booked and although these levels proved unsustainable, the ticker still reached a close of over $0.06 per share for the first time in just under five months.

The session was quite exciting and we’re pretty sure that there are people out there who are happy with the performance. It was also quite strange, however, because there seems to be absolutely no catalysts fueling the stock at the moment.

The latest press release is now quite old and the same goes for the most recent SEC filings. There aren’t any promotions and even the message boards seem somewhat deserted. Nobody can say where the hype is coming from and that’s a bit of a worry because apart from the hype, there isn’t much else that could keep the stock afloat.

The latest 10-Q, for example, looks like this:

  • current assets: $51,936
  • current liabilities: $1,116,902
  • NO revenue
  • quarterly net loss: $250,694

So, the financials are atrocious and there’s been no news for over three months. Unless you know something we don’t, you’re probably ready to hit the Sell button. And you might not be the only one.

As you can see from the figures above, PUGE has filled its books with quite a lot of debt over the years and some of it is convertible into common stock at discounts that range from 42% to 50%. Thanks to the favorable conversion provisions, some of the note holders received a grand total of 6,391,409 shares at just over $0.02 per share between January 31 and April 30 and they now have the chance to sell them at a profit. Will they do it?

We’re about to find out. As we’ve established already, however, there isn’t much that could entice them to hold tight.

About twenty minutes after the opening bell, PUGE is sitting at $0.068 per share (another 2% in the green).

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