And The Next Large-Scale Promotion Is… Virtual Sourcing, In (OTCMKTS:PGCX)
Back is September 2012, Virtual Sourcing, In (OTCMKTS:PGCX) had some issues. Their OTC Markets profile was marked with the Caveat Emptor badge because of their affiliations with their former President, Mr. John Stanton – a man that was jailed for tax evasion . As you might have guessed Mr. Stanton was forced to step down from his position and PGCX needed to look for new people to steer the company.
They found their new CEO in the face of Norman Birmingham and we must say that his reputation is not exactly crystal clear either. He is still listed as the CEO of Ise Blu Equity Corp. (OTCMKTS:ISBL) (another penny stock venture sporting a Caveat Emptor sign) and he was once involved with Nx Global Incorporated (OTCMKTS:NEGS) (a ticker with an extensive promotional history).
Fortunately for the shareholders, Mr. Birmingham is now gone as well. So is the Skulls and Crossbones sign, there’s a new business as well as a new management team, but still, we can’t help but thinking that the PGCX‘s shady past warrants some extra caution while doing the research.
With that in mind we were surprised to find that they are honest enough to admit in their financial report that they’re using a virtual office. We go through a number of small cap ventures every day and in order to find such spicy details, we often have to go through quite a lot of research. Is honesty enough to justify the huge 140% jump from yesterday, though?
Of course not. There’s been quite a big pump campaign comprising of around fifteen (and counting) emails received in our inbox as well as a special landing page disclosing a total promotional budget of $750,000. This means that, while it’s not as big as the ones for Alkaline Water Company Inc (OTCBB:WTER) and Arch Therapeutics Inc (OTCBB:ARTH), the pump for PGCX 
is still quite a big one and, as we’ve seen in recent months, the already substantial budget could grow even further.
We all know how most of these campaigns end up, and ARTH‘s chart is on hand to hammer the point home (a new 52-week low was registered yesterday). Despite all this, we decided to see if there’s anything that could help PGCX stay afloat.
Let’s start with the basics. PGCX, as the landing page is insistent on pointing out, are in the business of fiberglass recycling. Apparently, this is a very lucrative industry and one that could make a huge impact on the planet’s well-being. They recently acquired a venture called Allied Recycling Corp. and they seem pretty optimistic about the future. They even said revenues should start coming in by the end of the third quarter of 2013.
Future reports should reveal whether that’s true or not, but in the meantime, we are having some difficulties figuring out how they managed to complete the merger. According to their latest financial statement (the annual one for the period ended June 30) they had:
- total current assets: $202 in cash
- current liabilities: $373 thousand
- no revenue since inception
- yearly net loss: $203 thousand
At the same time, they are informing us that a Letter of Intent for another acquisition of a recycling company that could generate up to $9 million by the end of the year has been signed, but, once again they are keeping pretty quiet about the details around the potential purchase.
The news about the partnership with another penny stock, American Fiber Green Products, Inc. (OTCMKTS:AFBG), doesn’t sound too convincing either. According to the latest official report (which contains information that is seven months old), AFBG had around $1,500 in cash, $2.8 million in current liabilities and a yearly net loss of around $200 thousand.
On the whole, there’s quite a lot of unknowns around PGCX at the moment, but one thing is for sure – they don’t look like the sort of company that could withstand the huge promotional pressure. Make sure you have this in mind while making your investment decision.
