Puget Technologies, Inc. (OTCBB:PUGE) Crashed

Following the 7% drop on Tuesday, yesterday Puget Technologies, Inc. (OTCBB:PUGE) got a new volume high. Unfortunately, the price took a serious dive.

PUGE closed another 28.78% at $0.99 per share. The volume was more than twice the previous high, reaching more than 718 thousand shares.

There doesn’t seem to have been any particular new development to cause the crash. In the morning the company issued a press release, but it was more on the optimistic side, if anything. It said a subsidiary of PUGE was launching the development research of 3 new projects.

This doesn’t mean there are no reasons for PUGE to go down. The stock raises a few red flags. For one, on Oct. 9 and Oct. 10 we received a number of emails from paid pumper newsletters. Focus Media was paid $30 thousand to tout PUGE in its Darth Trader and Stock Psycho newsletters. Penny Stocks SMS got $15 thousand.

There are also other, more subtle, signs PUGE is a pump job. The company claims it’s engaged in a hot sector, but its stock had seen very limited trading prior to the pump. In July, when only a thousand shares had been traded, the company effected a 50 for 1 forward split

Then, there’s the sad balance sheet of PUGE which shows insignificant assets and no revenues, which isn’t uncommon for a development stage company, but it can hardly justify a $42 million market cap.

Until PUGE proves it can actually generate revenues, it may have trouble maintaining even the price level after yesterday’s crash.