PV Enterprises (OTCMKTS:VDSC) Pounding The Waves Again

As we wrote in some of our previous articles, back in early-2012, PV Enterprises (OTCMKTS:VDSC) announced that they are in the process of acquiring a large luxury ship called The Emerald. The management team were quite optimistic about it and said that it would generate more than $10 million in revenues from a charter agreement with a Korean company. In actual fact, The Emerald was on her way to being scrapped.

A couple of months later, VDSC were on the news once again saying that another ship called M/V Ocean Star Pacific has received all the certifications and is seaworthy once again. Less than a month later, this article appeared according to which, the ship’s crew were living “like prisoners” with supplies running out. With these two incidents in mind and the fact that the ticker is currently deep in double zero territory, trusting your money with VDSC is probably not that easy. Or is it?

Well, apparently, it is. Yesterday, quite a lot of people got excited about VDSC and as many as 344 million shares changed hands. The effects on the price were also quite profound – the open stood at no more than $0.0011 while six and a half hours later, the value was very close to $0.003 meaning that the potential gains stand at 163%.

What’s more peculiar, there is no immediately obvious reason for the jump. Message boards are indeed unusually active and some rumors are flying around about possible mergers, but, quite frankly, these sort of things are often observed when a ticker makes a 100%+ run. The latest email alert from the promoters is dated July and while quite a lot of people are tweeting about the ticker, there seems to be no signs of an outright paid pump.

Things seem to be pretty quiet on the PR front as well. The latest announcement to hit the company’s Yahoo! Finance profile is dated August 28 and it suggests that VDSC are going to partner with Invisosoft, Inc in creating an all-in one global visual communication platform – something quite different from the company’s main line of business. VDSC‘s CEO, Peter Villiotis wrote three letters to the shareholders in September, but we’re not too sure that they had that much of an impact on yesterday’s session. What’s more, some of them sound all too familiar.

Take the one dated September 18, for example. It talks about a letter of intent that was signed with a Korean company called Yeose Cruise Corporation according to which, the two enterprises will jointly establish a ferry operation to one of South Korea’s prime tourist destinations. This time, Mr. Villiotis refrained himself from filling the message with projections about future revenues (maybe he has learned his lesson) but, having in mind the previous failures, waiting for the factual evidence of the new venture’s success is probably the more sensible thing to do.

The other two announcements made by Mr. Villiotis concern the visual communication platform that we already talked about and some websites that were established recently without the approval of VDSC. Apparently, a person by the name of Walter Kolker has created three internet portals that are in one way or another related to the company without the management team’s consent. What do the pages do and how they affect VDSC remains unknown but we really doubt that they were the cause for yesterday’s sudden surge.

All in all, the run proved to be rather baffling for both the potential investors and the shareholders. One thing is for sure, with the lack of any news and with financial information that is more than six months old (the latest statement covers the quarter ended March 31 and the annual report will not be out until October 20), the risk of a violent correction becomes even greater. That’s why treading carefully and considering all the risks before jumping in is absolutely crucial.

Other stocks that created quite a lot of buzz yesterday include La Jolla Pharmaceutical Company (OTCBB:LJPC) who announced a $10 million financing deal which gave them a 40% boost and North American Oil & Gas Corp (OTCBB:NAMG) who are being squashed by the multi-million dollar pump. Will VDSC continue North like LJPC? Or will it sink, just like NAMG? We’ll have to wait and see.