YaFarm Technologies, Inc. (PINK:YFRM) Surges on Pump and No Information

Today, the market saw a classic example of a pump when a number of paid newsletters started touting YaFarm Tecnologies, Inc. (PINK:YFRM). The Pink Sheets shell surged more than 100%.

YFRM‘s trading history is virtually non-existent, not unusual for a shell or a pump scheme. The red flags are all over this one. In addition to having no trading or operational history, YFRM executed a 5 for 1 forward split before there was any active public trading.

What this basically means is that all the shares are held by seed shareholders of the shell, insiders or related parties. Traders can figure it out on their own who it is they are buying the shares from now.

The pump wouldn’t have worked if it weren’t for the company to lend a helping hand. YFRM issued a press release in the morning, saying the company had signed a definitive agreement to acquire some entity called the Integrative Stem Cell Institute.

The supposed website of this entity is under construction. What can be gathered from the limited information is that the institute was founded in Cancun, Mexico about 4 months ago. This can be seen on a cached version of what seems to be their old website which is now down.

One group of pumpers has disclosed a compensation of $50 thousand to pump YFRM. Other promoters disclose $100 thousand. Traders should ask themselves who’s paying for those pumps and why. If there is anyone who’s not aware of why those campaigns exist, they may want to consider the idea that the people who held the stock before the split need an active market to dump their shares and walk away with a hefty profit.

At this time traders are paying about $0.16 for a share of a company which may, or may not, have anything.