World Moto Inc. (OTC:FARE) Still Rushes Upward on APS Pump
Another classical pump scheme has shown up on our radar, going strong for a few days. World Moto, Inc. (OTC:FARE) gained another 9% on Thursday, still a far cry from the 71% gain at the start of the Awesome Penny Stocks (APS) pump on Monday. 
The FARE ticker was almost inactive before volumes shot up in the past week, and with the promotion still going on, we may expect the sharp moves to continue in the next trading period. Before December 11th, almost all shares were held by insiders, which could use the hype to initiate gainful selling. 
World Moto, claiming to be the authority on the motorbike taxi industry, shows the following strengths and weaknesses:
- $17.6 million market capitalization as of December 21, OTC Markets
- No revenues
- $2000 cash
- $34,000 total liabilities
The group also undertook some insider transactions before the pump, and secured several private holders with large amounts of post-split shares. The effects are not reflected in its balance with OTC Markets, although the company claimed to have gained some cash for issuing stock at par value.
FARE performed a reverse merger and a split. On Nov. 8, every shareholder on record got 181 shares for eve
ry one of the old shares; remember no shares had been traded at that time. About 2 million shares were supposedly sold in private placements to undisclosed investors.
The start of the APS pump saw volume of nearly 146 million post-split shares. After the “acquisition” and the private placements FARE got $188 thousand in cash and $100 thousand in intangible assets. However, this would hardly aid the company in developing a real business, given that a month ago it tried to gain from a different business model under the name of Net Ten Profits, Inc. A change in name is usual for penny stocks, yet it is a red flag for potential losses and hidden dangers.
It is still early to say how long the FARE run will go before mass selling brings the stock down from the 0.124 dollars to maybe double or triple zeros. The Awesome Penny Stocks would want a ticker to improve its record, since its last pick Superior Venture Corp. (OTC:SVEN) crashed sadly. Other pumps by APS are not so different either: the Pristine Solutions Inc. (PINK:PRTN) ticker is no longer seen. Therefore, it’s best to see the underlying strengths- or glaring weaknesses of a company before you buy the email hype of high-flying pumper APS.
