Round Two for PROGAMING PLATFORMS (PINK:PPTF) and Stock Rock and Roll

Until recently it was mostly teenage boys who played video games. In recent years, however this past-time activity has absolutely exploded. Men and women of almost all ages spend quite a lot of money on gaming and that, in turn, means that the industry is flourishing. As a consequence, a lot of small companies want to get a piece of the action and PROGAMING PLATFORMS (PINK:PPTF) is one of them. Or is it?

Well, that’s what Stock Rock and Roll say in their email. That is also what PPTF themselves were claiming a few months ago. Their latest quarterly report, however, states that they are now more focused on providing services that will make your website get more visits. PPTF‘s own website, on the other hand, mentions no such services and only brags about the revolutionary online gaming technology that they have developed. The technology, as far as we can work out, means that if you win the game, you will receive a monetary prize.

So the next question is: “Who is going to be interested in this patent-bending marvel of online gaming?”. Well, Stock Rock and Roll claim in their email that the gaming industry is worth $15 billion (which is probably the only statement we agree with), but let’s leave them for a moment and concentrate on what sort of revenues are PPTF actually generating. The answer is found in the latest financial statement for the period before September 30, and we have summarized the financials below:

• cash: $7,251
• current assets: $90 thousand
• current liabilities: $146 thousand
• revenue (Q3 of 2012): $1,462
• net loss (Q3 of 2012): $102 thousand

PPTF are not bothered, however, and say that, with the capital they have at the moment, they will be able to get through to the third quarter. Really? They spent more than $100 thousand on operations in just three months and now they say that they are going to survive for half a year with just $7 thousand in the bank? We remain skeptical.

The discrepancies don’t end there. Bear in mind that PPTF are developing a state-of-the-art gaming platform that is supposed to take the whole industry by storm. You’d expect that they have a tens of super computers in their offices for people with large brains to work on. You’d be wrong. The Property and Equipment section in the financial statement shows that they have no more than $568 worth of PCs. We reckon, they will need some more powerful tools if they are to succeed.

Let’s get back to Stock Rock and Roll (SRR). We were reading through the email that they sent out yesterday and it somehow sounded familiar. Almost too familiar. We decided to check if PPTF have been promoted in the past and, it turned out, they have. It was back in April 2012 and SRR were taking part as well. When you put the old and the new email side-by-side, you will see that the first half of the advertisement is 100%, word-for-word identical. SRR’s indolence is not our biggest concern, however. It is PPTF‘s performance after the pump that bothers us and as the vertical drop on the chart shows that it was appalling.

Which, by the way is not a first for companies promoted by SRR. They have been in the business for a while now and they have touted a number of stocks that have crashed hard once the hype was gone. IMING CORP (PINK:IMNG) is one such company. SRR’s last email featuring them was sent on February 7 when they lost more than 30%. They have been going further down ever since.