World Moto, Inc. (OTC:FARE) Pump Showed Potential

Despite a less than spectacular start, World Moto, Inc. (OTC:FARE), the current Awesome Penny Stocks (APS) pump job, shot up 26.36% yesterday.

Apart from the ongoing torrent of pump mails, the other factor which probably brought about yesterday’s performance was a press release issued by FARE after the close of Monday’s session.

In the press release FARE says it “has selected Thailand-based SVI Public Company Ltd (SVI) as its manufacturing partner…” While this statement may sound inspiring, potential investors should take note that nowhere in the press release a contract, an agreement or any kind of deal is mentioned. There are also no details of when investors should expect FARE to actually start generating revenue.

This is a question which traders should consider. FARE keeps mentioning an article on fastcompany.com and “a $3 billion dollar idea,” but if you take the time to actually look at that article you will notice that it’s dated February 8, 2011. The very same piece says that the Moto-Meter is supposed to have hit the streets of Bangkok in March (still 2011). For some reason, the product touted by FARE hasn’t generated revenue yet.

The article also reveals where do the $3 billion come from, and that is FARE‘s own Paul Giles who reached that estimate by multiplying the 20 million motorcycle taxis by $180 (the price of FARE‘s meter).

Meanwhile the pumpers at APS just keep saying that FARE could go to $1 per share and more. The same things they were saying about Superior Venture Corp (OTC:SVEN) and TagLikeMe Corp (PINK:TAGG).

Yesterday, those who are playing FARE as the pump job that it is got a chance to take some profits. That, however, doesn’t make FARE a solid investment, neither does it guarantee it can get a sustained run. Those who are new to trading should do their due diligence, unless they want to learn the hard way, how pump schemes work.