Psychic Friends Network Inc. (OTC:PFNI) Wrecked Beyond Repair
The more superstitious may be expecting the world to end at the end of this year, and some Psychic Friends Network Inc. (OTC:PFNI) investors are selling as if it’s their last. The stock, pumped since December 5th with a significant budget, erased all gains in just two trading days, falling like a rock and losing upward of 55% each day. 
We wish we could say PFNI gave a good run for some investors’ money, but the selling in the past two days happened in much lower volumes than the buying, leaving a lot of investors holding very depressed stock. This may mean more selling in the future, as well as a further fall in price. But for those who still have hope, just take a look at the company’s underlying financials: 
- Zero revenues
- $394,063 cash
- $168,043 quarterly net loss
- $35 million market capitalization
The company still has no significant business and it’s improbable that it will repeat its success from the 90’s. Although there is a new website and an attempt at a mobile application, the success from sales is still far and we’ll have to wait and see if it will translate into sustainable stock growth.
We talked before of the company’s CEO Michael Lasky. A serial entrepreneur, he is known for abandoning companies and moving on to new projects. Although Psychic Friends Network is his best-performing company, it is still unclear whether he intends to expand it and make it profitable or may be using paid promotions to just pump its stock.
It is still not clear if the PFNI noise will continue in any way. The Stock Specialists campaign, with a $100,000 budget, fizzled out in just a few days, and the PR messages have been silent for about a week. Lacking promotional noise, the PFNI may climb erratically and attract interest, but it has shown the possibility for erasing all gains very quickly.
While PFNI is mostly finished, another co-runner, Santo Mining Corp. (OTC:SANP) is still vying for attention with an ongoing promotion. The stock has been falling in the past few days, but it may stage a comeback as the emails continue to be among the most active. It’s best in the case of freshly promoted companies to do your own research and try to avoid surprising losses.
