Puresnax International Inc (OTCMKTS:PSNX) Crashes Even With a Pump
tags: PSNX
Last week the pumpers once again returned to the stock of Puresnax International Inc (OTCMKTS:PSNX). The first emails started flying around late in the evening on July 12 and were sent by OTC Fire and StockHideout for a disclosed compensation of $25 thousand. The artificial hype proved to be enough to push the stock of the company over 6% in the green on July 13. Unfortunately, the next wave of emails had the exact opposite effect.
Several hours before the start of last Thursday’s trading the newsletters affiliated with EGM Firm began touting PSNX. Instead of propelling the stock even higher this time the pump caused it to crash hard – by the time of the closing bell the ticker had wiped 11% of its value and was sitting at $0.24. This painful drop wasn’t enough to stop the promotion and after the session even more pumpers joined in, resulting in even bigger losses during Friday’s session – PSNX sank by 12.5% and closed at $0.21 per share. Can the company make a recovery with the start of the new week, though?
Even without the added dangers of the pump PSNX remains an extremely risky choice. The red flags that surround the company are both numerous and extremely dangerous, and this becomes rather evident when you open the latest financial report. It covers the quarter ended March 31, 2016, and contains the following numbers:
• $441 cash
• $8,365 total assets
• $173 thousand total liabilities
• ZERO revenue
• $172 thousand net loss
Three weeks ago PSNX announced the completion of “the delivery of an initial product shipment to fulfill the first purchase orders received under its previously announced advertising and distribution agreement”. This could very well mean that in the next financial report the balance sheet of the company is going to show at least some amount of revenues. It is up to you to decide if that will be enough to justify the company’s current market cap of $21 million.
In our previous articles we have also been warning you about the possibility of millions of extremely cheap shares finding their way to the open market. A few years ago seventeen individuals bought 2.5 million shares for a total of $25 thousand. Thanks to the 40-for-1 forward split performed by PSNX last year those people now owned 100 million shares, which also represented the entire O/S of the company.
PSNX must be approached with caution. Plan your trades carefully and never put unaffordable sums of money on the line.
