Psychic Friends Network, Inc. (OTC:PFNI
, PFNI message board
) has only been a publicly traded company for a couple of months, but already it's getting pumped
by paid promoters.
The company emerged on the OTC through a reverse merger in February. It didn't see any action until April. In the past two weeks the price has gone up from about $0.75 to Friday's close at $1.05, which was an increase of 1.45% on 111 thousand shares.
Capital Financial Media, LLC paid $30 thousand to Global Marketing Media, LLC for a one day pump of PFNI. The emails sent yesterday could affect trading today.
PFNI is a second stab at the idea of the Psychic Friends infomercial idea from the late 90's. From the filings of the company so far, it seems PFNI has secured some dilutive financing which won't be enough to sustain operations for the next 12 months.
At the current price the market cap of PFNI is more than $85 million. At the same time there is no guarantee PFNI will perform as well as the infomercials did last time, and a recent filing states that the phone service that the management operated in the 90's was forced to file for bankruptcy.
Keeping in mind that PFNI hasn't reported any results yet, the $85 million cap seems somewhat inadequate. Traders and potential investors should do their due diligence before even thinking about approaching this company.