The Pump for Pingify International Inc. (OTCBB:PGFY) Claws Its Way Back Up
The pump for the stock of Pingify International Inc. (OTCBB:PGFY) seemed dead almost right from the start. After the massive surge of more than 51% which brought the stock to a high of $1.74 on the first day of the promotion the Chief Financial Officer of the company, in a rather shocking move, not only resigned but urged both the SEC and FINRA to investigate the company.
In his letter to the shareholders he warned them that the people behind the campaign are more than likely the owners of 25 million free trading shares which were bought at just $0.005 each. His statements caused such a violent reaction that in just two sessions PGFY lost nearly a whole dollar of its value dropping from $1.37 to less than 40 cents.
Such a fiasco would have spelled the end of most pumps but StockTips are one of the most influential pump outfits at the moment and they were not ready to give up. And why would they when the disclosed compensation for their services amounts to $6.5 million. Their email alerts coupled with the PR announcements made by PGFY have managed to bring the stock on the path to recovery despite the plethora of red flags around it.
In addition to the millions of extremely cheap shares that could hit the market and the resignation of the CFO the company is in an extremely dire financial state. According to the latest annual report PGFY have:
- $2209 cash and total current assets
- $62 thousand total liabilities
- ZERO revenues!!!
- $101 thousand net loss
Their mobile app has been available on the iTunes store for more than 2 years without generating any revenues, more specifically in the same report PGFY say that they have ” less than $10 in revenues from the sale of our app”.
Even the PR from May 7 which talked about the signing of a letter of intent for the acquisition of 80 Elements Entertainment is not exactly encouraging. PGFY have been in negotiations with 80 Elements for nearly 9 months without any concrete results. They already signed one letter of intent back in August, 2013 which was left to expire. If this new letter of intent will have a 
different fate remains to be seen.
different fate remains to be seen. With all this a possible SEC intervention is not out of the question and investors should be extremely cautious when dealing with the stock. Even if the company doesn’t get suspended looking at the performance of the past StockTips promotions will give you a good example of what PGFY‘s future will most likely be. Well Power Inc. (OTCMKTS:WPWR) has lost 86% from the high of its promotion, Pan Global Corp (OTCMKTS:PGLO) is 89% down, Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) is 85% down.
