PF Hospitality Group Inc. (OTCMKTS:PFHS) Gets A Pump

PF Hospitality Group Inc. (OTCMKTS:PFHS) had been sitting in illiquid obscurity for months on end before yesterday’s tout by Small Cap Specialists LLC.

From a purely objective point of view, the pump worked rather well – it generated quite a bit of volume, as 551 thousand shares of PFHS common stock changed hands. Most of the exciting chart climbing happened in the first few minutes of the trading session, of course – the ticker then proceeded to crash right back down to the bottom of the charts, and truth be told, it’s something of a miracle that it managed to finish the day in the green at all. Why?

Because, from what even superficial due diligence shows, PFHS looks like a classic pump job. The pumper was compensated with “an investor relations budget of fifty thousand dollars cash” to tout a company that has no cash, no current assets or even long term assets of ANY kind.

Even on the OTC Markets’s pinksheets section it is sometimes hard to find a company that literally has nothing but debts to its name, but PFHS is clearly one of those “overachievers” – and it should be dully noted that among its debts, there are $421 thousand worth of convertible notes with provisions as horrible as:

“The note is also convertible at the option of the Company at a fixed price of $0.001 per share.”

And

“…At a conversion price equal to 65% of the lowest traded price of its common stock for the 20 trading days prior to each conversion date subject to adjustment.”

This being the case, is it really any wonder that the ticker took off, just to be slammed back into the ground mere minutes after the session started?

We should hope not – just as we should hope that no one will be surprised if PFHS crashes, drops to the bottom of the charts, then proceeds to return to illiquid obscurity once more.