Is World Moto, Inc. (OTC:FARE) the Last APS Pump?

On Monday, World Moto, Inc. (OTC:FARE), f.k.a. Net Profits Ten Inc, emerged as the new pick of Awesome Penny Stocks (APS). After the horrible fiasco with Superior Venture Corp. (OTC:SVEN), a lot of people were wondering if APS would dare go for another pump job. APS is active again.

After a 71.58% gain on Monday, yesterday FARE went up another 8.68%, although the volume of 32.3 million shares was less than a quarter of the volume from the previous day.

FARE shows all the classic signs of a pump scheme. The company hasn’t been actively traded prior to Dec. 11, and virtually all the shares were held by insiders.

The company also didn’t have significant operations. Then it “acquired” some assets from a private company. The acquisition was actually a reverse merger. After that there came the split. On Nov. 8, every shareholder on record got 181 shares for every one of the old shares; remember no shares had been traded at that time.

About 2 million shares were supposedly sold in private placements to undisclosed investors. On Monday the volume was nearly 146 million shares. Traders can do the math and get an idea where those shares came from.

After the “acquisition” and the private placements FARE got $188 thousand in cash and $100 thousand in intangible assets. At $0.124 per share the market valuation of FARE is about $46 million.

If you’re wondering what happens with companies like FARE, you may want to take into account some another APS pumps – TagLikeMe Corp. (PINK:TAGG) or Pristine Solutions, Inc. (PINK:PRTN).

It will be interesting to see whether FARE will be able to run before crashing like the aforementioned two, or it will be as horrible as SVEN. The future of APS may depend on it.