Medical Cannabis Payment Solutions (OTCMKTS:REFG) Gets Pumped yet Again
Medical Cannabis Payment Solutions (OTCMKTS:REFG) went through an interesting session yesterday. It opened the day with a significant gap up at $0.1315 and tried to go even further up. It hit an intraday high of $0.138 but staying there proved to be too much which means that it finished the session just above the $0.12 mark or 1.7% in the green.
Hardly the most impressive performance out there, but we can’t ignore the fact that investors traded more than 4 million shares which resulted in a daily dollar volume of around $500 thousand. What’s more, they did it after REFG spent more than a few months hibernating and sitting virtually idle. It’s pretty clear that something is up. What is it?
Yesterday’s volume spike wasn’t caused by a piece of news. REFG‘s latest announcement is now more than a month old and in it, the company CEO, Jeremy Roberts, said that “2014 has been a thrilling and enjoyable year” for REFG.
We opened the latest financial statement and we were left more than a little confused by these words. The figures for the second quarter show what we mean:
- current assets: $15,570 in cash
- current liabilities: $143,599
- quarterly revenues: $5,000
- quarterly net loss: $5,672
It’s pretty clear that REFG still have a long way to go until they become “a leader in technological solutions for the medical cannabis industry” (words taken straight from the company’s press releases). Still, we should mention that after the end of Q2, REFG secured a $500 thousand strategic investment which should give them a push. You never know, the forth quarter might just turn out to be extremely impressive.
We’ll need to wait and see if this is indeed about to happen, but in the meantime, the question remains: “What’s the reason for yesterday’s sudden and violent volume spike?”.
The answer can be found in our database. That’s right, REFG has become the target of yet another paid pump.
Various third parties have set aside a total of $85,000 and in exchange, numerous promotional outfits have flooded investors’ inboxes with sixteen emails in a matter of less than two days. Darth Trader a/k/a The Stock Psycho pocketed $20 thousand, Winning Penny Stock Picks as well as the rest of the newsletters owned by Freedom Ventures LLC disclose a $15 thousand compensation, and Penny Stock Circle have received $50 thousand.
For various reasons, the stock promotional industry isn’t in its heyday at the moment, but that every now and then, newsletters manage to attract some attention to their picks. The thing is, if anything, that makes playing the few active pumps even riskier.
Hype rarely lasts for long which means that the people who stand to make some money out of the promotion might be willing to do it as quickly as possible. That, in turn could spell disaster for the investors who are jumping in because of the pumpers’ promises of wealth and fortune.
All these risks are present with REFG at the moment and considering them carefully before putting any money on the line is absolutely essential.
