Pan Global Corp. (OTCMKTS:PGLO) Can Be Painful
Pan Global Corp. (OTCMKTS:PGLO) has been climbing since Oct. 21, and the price is now about double what it was when the climb started. However, there are red flags, and the tide can change quickly and hurt novice investors.
Yesterday PGLO added another 14.6% and closed at $0.573 per share. It also recorded a new volume high with 4.6 million shares traded. In the morning the company had issued a somewhat generic fluff press release about the small hydro power industry.
Such press releases only aim to build up hype. There is virtually no significant new information about PGLO itself. Issuing hype press releases is not a novel approach. I has been used in pump schemes for a long time, and PGLO appears to be just that.
We have received a number of tout emails from Stock Tips. The newsletter is operated by Amerada Corp. and that entity expects to receive $1.1 million from Laluna, Inc. to pump PGLO. The mere existence of this pump campaign is a huge red flag, and there are more of them when one takes a look at the company itself.
Prior to Oct. 21, PGLO hadn’t seen active trading with just two sessions in which any shares changed hands. These are some of the numbers in the company’s quarterly report for the period ended June 30, 2013:
- $9,822 cash
- $20,322 total assets
- $394,662 total liabilities
- $15,000 revenue
- $107,169 net loss
It must be noted that the revenue came as a result from a share exchange in April, and PGLO was practically a shell company. Now the company claims it will acquire a 5.7MW small-hydro project in India. The agreement calls for the company to pay approximately $655,738 by Nov. 4. That’s money the company doesn’t have, and that’s just the first round of closings.
The story is shaky at best. Traders and potential investors should be very careful with PGLO. They should do their due diligence before making any decision, if they don’t want to get burned.
