Ya Farm Technologies, Inc. (PINK:YFRM) Sold Off Despite Pump Promises
A long-term pump from the last few weeks, stem cell researcher Ya Farm Technologies, Inc. (PINK:YFRM) already wiped out the larger part of its gains, only to mark near record sales on Wednesday. After a brief spike in price at the beginning of the week, investors found an opportunity to shed nearly 7 million of their holdings, leaving the position after it became too depressed and inactive following a paid pump campaign. 
The last email for YFRM came up on March 27th, and the increased activity during the day may have given the opportunity for investors to shed the unwanted shares and perhaps shave off a bit of profit. Currently at 6 cents after a 27% drop, YFRM could go down deeper, as penny stocks tend to dig down even below a cent. 
The red flags that may portend a further fall in the YFRM stock are right there in the company’s financial statements:
- $1,051 cash
- $142,195 current liabilities
- Zero revenues
- $20,281 net loss
As we see, whatever biotechnologies the company plans would have very little resources unless further financing is acquired. And further financing would mean either more debt or stock dilution.
But YFRM has deeper problems than that, which have to do with the credibility of its proposed therapies. On March 27th, the company announced the opening of its stem cell institute in Mexico, and thus associated itself with Hospital Galenia, a private institution known for claims of fraud and dubious medical practices. It seems Ya Farm will be experimenting with its patients, flying u
nder the radar of approved therapies and without a chance of monitoring.
YFRM has been promoted for a total of $141,000, and the latest slew of emails cost $20,000 for several pumpers. The paying party for all sub-contractors is Micro-Cap Consultants, a very active entity with a long log of past stock selections. It participated in some of the month’s most active pumps, such as Smack Sportswear, Inc. (OTC:SMAK) and Creative Edge Nutrition, Inc. (PINK:FITX).
In case of companies that show disproportionate stock movements and are clearly linked to promotional materials, it is best not to trust your investment unless you are certain you could afford the losses.
