Refill Energy, Inc. (OTCMKTS:REFG) Gets More And More Exposure

Active trading for Refill Energy, Inc. (OTCMKTS:REFG) started a little over a month ago and since the very first days, the ticker has proven itself to be a wild ride. Things were looking good at first when some increased volumes pushed the price from around $0.15 per share all the way up to $0.60. After an inevitable correction, it was back below the $0.40 mark but it managed another run, this time going as high as $0.64.

Since then, REFG‘s performance has been rather shaky. Virtually all the runs in the green direction have been followed by retraces towards the bottom of the charts and, while the volatility of penny stocks could always serve as an excuse for the rather erratic behavior, in the case of REFG, there are some other factors that affect the chart movement.

On the face of it, Refill Energy, or as they prefer to call themselves nowadays, Medical Cannabis Payment Solutions, appears to be just another company that is entering the booming medical marijuana sector and, while their press releases certainly sound exciting, the same thing can be said about virtually all penny stocks out there. In that sense, there’s nothing to legitimize the increased attention towards the ticker.

When you dig a bit further, however, you’ll see that someone is trying to artificially inflate the price. As we mentioned in our previous articles, some radio commercials have appeared and we can see that they’re still going strong. In addition to this, quite a lot of people are talking about the ticker on Twitter and we stumbled upon this alert page published by promoters OTC Stock Pick. If you have a look at it, you’ll see that it sounds like the typical pump message and, sure enough, when you check out the site’s disclaimer, you’ll see that the people who took the time to express their optimism have been paid “a fee of up to thirty thousand dollars” to do so.

This adds some additional risks to a potential REFG investment, which, on its own, is already dangerous enough. The promotion is still running mostly under the radar, but volume spikes such as the one witnessed yesterday could serve as proof that some of the investors are taking note. Rumors suggest that a much bigger campaign is about to commence and, truth be told, we won’t be at all surprised if that happens.

Not least because REFG looks like the typical pump set up – while the name and the ticker symbol haven’t been changed recently, there is a new business model which sounds mightily exciting and the fact that it is in some way related to the medical cannabis industry draws more and more attention. As an added bonus, we mentioned already that there are some people holding quite a lot of cheap stock which could be offloaded onto the open market at any time.

This, coupled with the erratic performance from the last couple of weeks means that the ticker could move in any direction with little or no warning – definitely something you should keep in mind in case you are considering playing the pump and trying to squeeze a profit out of it. But what if you are really into REFG‘s business model and you want to invest in the ticker for the longer run? Is there anything to suggest that they might be onto something?

Well, it’s still way too early to say for sure. When we last wrote about them, their website was returning a malware warning (which is quite embarrassing for a company developing software solutions) but it would appear that the problem has now been dealt with. We can see the descriptions of the three products being developed (the VoIP service that should be on the market already, a mobile phone app and the Seed-to-Sale system that will help medical cannabis companies with their business) and while they’re all presented as solutions to many problems, we’ve yet to see the response from the general public.

In the meantime, you should have in mind that careful consideration of all the risks related to pumped penny stocks can save you quite a lot of headaches in the long run. The people whose money got incinerated during yesterday’s fall of Media Analytics Corp (OTCBB:MEDA) will tell you how bad exactly the feeling can be.