PGFY’s goal is to provide a simple notification tool that puts you in control of what you receive. In our 5/6/2013 email we mentioned an aggressive pump campaign had begun for PGFY and that we established a short position. Yesterday, PGFY’s CFO and Director Vlad Milutin, submitted his resignation to company President Jason Gray today, in objection to a promotion campaign to artificially raise the price and trading volume of Pingify.
Yesterday afternoon the company issued three press releases in response to the morning release of the resignation of its CFO. We were unimpressed with the CEO’s commentary in the three rebuttal press releases. The release regarding its Letter of Intent to acquire 80 Elements Entertainment is just recycling a letter of intent verbiage that has been on and off the table since August 2013.
Additionally, with only $2,209 on balance sheet, the CEO does not disclose how the company would finance this acquisition and does not disclose the revenue of 80 Elements Entertainment. Quote from Boris Chow, President of 80 Elements.
“We are definitely on track to hit our revenue target by the end of 2014.”
We view this as classic pump and dump ploy to get investors excited about potential growth prospects.