Stock Mister Joins The Pump For Virtual Sourcing, Inc. (OTCMKTS:PGCX)
With the promotion for Virtual Sourcing, Inc. (OTCMKTS:PGCX) now in full motion the stock has been making a steep climb up the chart closing in the green for the past four sessions. It has surged from $0.16 to $0.76 after yesterday’s 40% gain for a cumulative 475% increase. Interest in the stock has also remained significant with 700 thousand shares traded.
Such an uncharacteristically positive and steep uptrend is often associated with pumps that disclose massive budgets amounting to millions of dollars. For now PGCX is supported by a pump relying on “only” $750 thousand according to the disclaimer at the bottom of the report covering them. But the price may go well beyond that sum depending on its length. For now the stock is nowhere near the issued near term target of $3.
Maybe that is why as of yesterday the notorious pumper Stock Mister has been brought in to join the campaign. For just 1 day of marketing services they expect a compensation of no less than $100 thousand. For the exact same sum last week they were hired to tout the stock of SourcingLink.net, Inc. (OTCMKTS:SNET). The company surged on the first day but since them has been going nowhere but down quickly approaching its pre-pump levels. PGCX have been doing their part in order to entice investors and released a rather vague PR article. Without mentioning any specific names they announced that several potential acquisition targets have been found which are expected to finally turn PGCX into a revenue-generating company in the last quarter of 2013.
The funds required for such a grandiose plan will come from a loan package that supposedly will amount to $15-20 million. The terms of this loan include no common stock conversion privileges, low interest rate and five years to repay. Until further details have been provided and proper filing submitted to OTCmarkets we will remain skeptical about this “too good to be true” deal. You will understand our pessimism if you take a look at the annual results disclosed in the latest financial report:
- $202 cash and total current assets!!!
- $373 thousand total current liabilities
- ZERO revenues
- $203 thousand net loss
The company is also quite fond of doing reverse splits. They started by a humble 1-for-17 reverse split in 2008 followed by a 1-for-700 the very next year. And in 2012 came the massive 1-for-1500 split which created a lot of room for new issuance of stock. Currently PGCX have 88 million outstanding shares out of the 900 million authorized.
While the promotion is still going on the stock might be able to support is upward movement. Today the stock is meeting heavy resistance at the 0.90 mark and is only 7% up from its previous close. Be sure to do your own due diligence and set up appropriate time horizons for your investment in order to avoid any unnecessary losses.
