Pioneer Exploration, Inc. (OTC:PIEX) Touted by Penny Stock Prophet
Penny Stock Prophet’s latest pick is Pioneer Exploration, Inc. (OTC:PIEX). Unfortunately, besides the fact that the company is a regular SEC filer, there is barely anything positive about it. For there are a great many obstacles it must overcome before starting real business.
In fact, this is just one of the campaigns in support of PIEX today, and it is solely aimed at keeping the momentum gained from the preceding pump jobs on Jan. 16 and Jan. 22, respectively. Indeed, the series of tout emails flooding our mailbox for the last few days did give PIEX a momentary boost in terms of market value as the stock gained consecutively 17%, 21% and 35% on Jan. 17, 18 and 22, respectively. Penny Stock Prophets are just trying to keep the promo flame burning. Are they in for a great success, though?
Had the company in focus been something more than a recently transformed shell, we would have been much more optimistic about its chart prospects. Sadly, this is not the case and PIEX‘s fundamental position is nowhere near as stable as an ordinary investor would expect. Bar $134 of cash, the company has no assets whatsoever as of Nov. 30, 2012. It has, on the other hand, accumulated liabilities in excess of $1 million, all due within the next fiscal year.
What is more, the company states in its latest quarterly report that it would need $3.5 million to implement its four-step plan of operations slated for the next 12 months. Since PIEX has practically no tangible assets to secure a debt, it will have no other choice but rely on equity financing. The latter will in turn lead to substantial dilution among existing shareholders.
To add fuel to the current pump effort, PIEX has just published a positive press release regarding the supposed request for its patented molecular process by a huge multinational corporation. As promising as this may sound at first sight, we would rather remain cautious. According to the aforementioned 10-Q report, PIEX has yet to secure lab space where its workforce could develop the IBA aggregates formed using the patented process and transform them into commercially viable products. Since the company does not appear to have found the $450 thousand needed to carry out this phase of the plan, the odds are strongly against any possible developments in this respect.
In the light of the facts mentioned above, PIEX might not be as attractive an investment as Penny Stock Prophet suggests. The company does not have sufficient financial stability to defy the obvious. However, in case you still want to push your luck, be sure to check out the promoter’s historical record to see how miserably their previous picks performed.
