Petar Ilievski

When the Day of Pollex Inc (OTC:PLLX) Comes

by Petar Ilievski June 3, 2011
jyto.jpgSo what actually happened - this is what people ask themselves after seeing what Pollex Inc (OTC:PLLX, PLLX message board) stock did yesterday. Where did this explosion come from, and more importantly - how is it possible that a barely tradeable stock hits a 900% increase in the price all of a sudden? PLLX-03.06.11.jpg

A valid question. What does Pollex offer in terms of information? An all-time high in terms of trading volume yesterday, making up for a 900% increase in the stock price, the session closing at $0.20 per share. Also - barely any activity this year, barely any activity in 2010 and in 2009. Trading volumes between around 1,000 shares per day, with no significant movement of the stock price. No news at hand, no website at hand, just a 10-Q indicating that Pollex has nothing but cash in the total current assets ($22k). Some people might consider this to be a pretty suspicious situation. Yet, there is one fact, the most important one, which is still missing. Promotions.

There is this promoter that promotes companies like Pollex (OLDW is another example). Companies which barely ever see trading activity. Yet, it somehow manages to sparkle trading frenzies for them, bringing insane increases in the stock price. Usually for a short period of time, before the inevitable free fall starts.

In terms, there are opportunities for profits. They, however, go along with extreme uncertainty since it is not easy to know when the next promotional wave would come. As mentioned, there is no objective evidence at hand that this enterprise is going the extra mile towards stability or growth. There is a rather uninspiring balance sheet, coupled with promotions every now and then. A perfect field for speculative investors.

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