Puget Technologies Inc (OTCBB:PUGE) Wakes Up Without the Pumpers’ Help

PUGE.pngWhen we last wrote about Puget Technologies Inc (OTCBB:PUGE), it was refusing to make a significant move in the right direction despite the effort from the paid promoters who were desperately trying to convince their subscribers that the stock belongs to one of the more interesting marijuana companies. Since then, the management team seem to have changed the business plan and they’re probably regretting their decision right now.

As you probably know, the cannabis industry has been on fire over the recent weeks and most of the OTC-listed tickers in this sector like Medical Marijuana Inc (OTCMKTS:MJNA), GreenGro Technologies, Inc. (OTCMKTS:GRNH), Growlife Inc (OTCBB:PHOT), and Hemp, Inc. (OTMKTS:HEMP), have all gone through some intense sessions.

Despite the fact that, at least as far as press releases are concerned, PUGE is no longer a “pot stock”, it too managed to register a respectable $614 thousand in dollar volume yesterday. The price also increased by around 13% and the ticker managed close the day above $1 per share for the first time since November.

The reason for this is the fact that they left the cannabis products for something that is equally hot at the moment – 3D printing.

Until December 23, all of PUGE‘s PR announcements were focused on the marijuana business but then, without a warning, they said that they have established a 3D printing division. The press releases that have came out of the company headquarters since then (all four of them) have all been focused on the exciting new technology and they all suggest that PUGE will eventually come up with an affordable solution for the consumer market which will supposedly be worth $6 billion in four years.

Sounds good, but is it going to happen?

Well, the business model might have changed, but the balance sheet certainly hasn’t. The latest quarterly report is still the one covering the period ended July 31 and it still boasts the following strengths and weaknesses:

  • cash: $8,810
  • current assets: $11,310
  • current liabilities: $56,018
  • no quarterly revenues
  • quarterly net loss: $26,602

They say that they have managed secure a credit agreement which should provide up to $1.25 million in cash, but the terms of the contract remain somewhat ambiguous.

What’s more, the frequent changes in the business focus (prior to the marijuana hype, they were dealing with the distribution of wool bedding) might lead some of the more skeptical investors to believe that the management team is looking for nothing more than a bit of exposure and some increased volumes.

PUGE_logo.pngWe can’t be certain if this is indeed the case or not, but the marijuana hype from October certainly created a lot of stir. The effects on the price, however, were dismal. PUGE dropped from around $1.40 to just $0.66 in less than a month and left a lot of disappointed investors behind.

Will the same thing happen this time? We’re about to find out, but if you are contemplating a potential investment in PUGE, you should be extremely careful to consider all the risks and perform the necessary amount of due diligence before putting any money on the line.

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