Pazoo Inc. (OTCMKTS:PZOO) Jumps After Repaying Debt

Pazoo Inc. (OTCMKTS:PZOO) managed to jump 30.08% on Friday after announcing that it has paid-off one of its many creditors.

According to the PR that hit the web on Apr. 24, 2015 the company has paid what it owes to
Union Capital LLC in full, and intends to do so with regard to its debt to Eastmore Capital as well. As is evident by the ticker’s rapid ascent, investors were impressed with the announcement – so much so that more than 40 million shares changed hands that day. But did investors really have that much of a reason for enthusiasm?

A look at the company’s OTC Markets Profile determines that almost a month after delaying its filing, PZOO still hasn’t submitted its annual report for 2014. Perceptive investors would have already noticed that the company is now classified as “Limited information” and marked with a red triangle.

Smart investors would have connected the dots and realized that this, in turn, pretty much renders the statement that pushed PZOO up in the first place meaningless. There’s no real guarantee that the company has even paid the debts as it claims – and who knows how much more money it owes to other lenders?

And even if we assume that toxic debt is to stop being an issue soon – there’s no real guarantee that if the company does eventually end up filing its 10-K, this report will not be as mediocre as its last filing.

This is why investors should be extra careful when dealing with PZOO. The ticker may have soared on Friday, but its position is anything but secure.