The Rise and Fall of PacWest Equities, Inc. (PINK:PWEI)
After surging 22% on Monday on no detectable ongoing pump campaign and a single but inspired press release, yesterday PacWest Equities, Inc. (PINK:PWEI) was steamrolled into a 24% crash that drove the price below its Friday levels.
The sudden surge in price was likely triggered by the release of news that PWEI has successfully acquired solar technology assets from DayStar Technologies, Inc. – a company still listed on the NASDAQ. This deal was the stuff of promotions for PWEI as early as mid-February, when a large number of promoters who received relatively small compensations touted the company.
The press release quotes unknown analysts who valued the deal at $55 million. How PWEI intends to pay for it, though, is not explained. Considering the numbers in PWEI‘s most current financial report, a yearly dated December 2012, traders will probably be able to figure out for themselves how the alleged deal is going to be financed:
- $49 thousand in cash
- $23 thousand in current liabilities
- ZERO yearly revenues
- $63 thousand net loss
PWEI stock slipped back down within a single day, a press release alone probably unable to sustain a longer run or keep the price level at the new high. The financial situation of the company does not exactly inspire great confidence, considering PWEI‘s 2012 acquisition of technology from World Eco Source, currently a subsidiary, was paid with the issuing of 455 million shares and this technology has not generated any revenues.
PWEI is currently flat in today’s session, share volume in early trading heavily faded from the values of the last two sessions. With a mostly flat Monday chart after a huge gap up, traders who bought back then are left with a quarter of their investment gone and holding shares in a company that does not generate revenue but is valued at over $300 million in terms of market cap.
