Seven years ago I thought to put out more detailed research on certain pump and dump scams on a separate blog at OTCMicrocapResearch.com. After a handful of highly-researched posts I got distracted and stopped. I am now giving up that domain name and shutting down that website. Below is a copy of one of those posts. The article below was originally published on 7 November 2012.
On Monday night PacWest Equities (Pinksheets: PWEID) released a press release touting the great sales gains made by their PurGro Electronics subsidiary. The company continues to show a complete and utter disregard for investors by publishing only the most positive information and failing to give out any other information. The press release states in part:
3rd Quarter Sales for its wholly owned subsidiary, PurGro Electronics, showed a 430% increase in sales over 3rd quarter results for 2011, following the consistent sales growth trends set in the previous two quarters.
What were the sales? What were the prior months’ sales? How many shares were issued to purchase PurGro Electronics LLC? We have no clue — yet still the stock goes up. At a recent price of $0.68 that gives the company a $1.3 billion market cap (using my estimate of 500,000,000 post-split shares issued to pay for PurGro).
The stock promotion of PacWest Equities has grown larger — I received an email this morning from “The Penny Stock Pillager,” which has published pump mailers for past pump and dumps, disclosing $300,000 in compensation to promote PacWest Equities. See the disclaimer online here or below:
Read my prior articles on PacWest Equities:
Is PacWest Equities (Pinksheets: PWEID) a bona fide company? Or is it being run for the purpose of selling shares?
Coverage initiated on PacWest Equities (OTCBB: PWEI) — Strong sell, price target $0.06
Disclosure: It is the policy of MorningLightMountain LLC for no authors of articles nor anyone connected to the company or their immediate relatives to have positions in any stocks covered on the OTCMicroCapResearch.com website, from the time coverage is initiated until coverage of a company is officially dropped. This ensures that there will be no bias nor conflicts of interest for the authors of articles on this website. Furthermore, information about upcoming research reports will not be given to anyone prior to public notice being given via this website’s Twitter account or on this website itself (this report was published on Wednesday, November 5th, at 1:34pm EST). OTCMicroCapResearch.com never gets paid to analyze companies.