Borislav Tonev

Pollex, Inc. (OTCMKTS:PLLX) Makes A Run For The Stars

by Borislav Tonev September 4, 2013
PLLX.pngPollex, Inc. (OTCMKTS:PLLX, PLLX message board) opened yesterday's session at $0.04, made a brief run to a high of $0.42 after which it settled down and finished the day at $0.27. If you are lucky enough to have some shares bought prior to yesterday's eventful trading, you're probably looking at gains of around 900% (PLLX's previously recorded value stands at around $0.027), but if you are one of the people who bought some stock yesterday, which is most likely the case, things might not look quite so bright.

The thing is, such runs don't just happen out of thin air. There is usually either an important piece of news to fuel the chart movement, or a stock promotion. In the case of PLLX, it was Stock Mister (SM) and their Alert Page that propelled the ticker towards the skies. The touting was done for free and the mention came out around the beginning of the day. Looking at their commentary that arrived after the closing bell, we can see that SM are quite happy with the way things turned out. "Tell that to the people who bought stock at more than $0.40 per share." is the first thing that comes to mind, but most likely, the traders who got burnt yesterday are more interested in the chances of them escaping with at least a part of their investments intact.

Unfortunately, things don't look too good at the moment. If you check out our previous coverage on PLLX, you'll see that this is not the first time pumpers have toyed around with this stock. Back in June 2011 The Stock Psycho emailed a couple of alerts which sent the ticker on pretty much the same exact route as yesterday's one, resulting in similar daily gains of around 900%. Is should be noted, however, that back then, the intraday high was even greater (around $0.70) which means that the losses for the inexperienced investors were even more substantial. PLLX did manage one more green session, but soon after, it all fell to pieces and about a couple of weeks later, the ticker had dropped back to $0.04.

7GCIH.pngThe fact that this time it's Stock Mister rather than The Stock Psycho doing the touting doesn't make things better. The last time SM did a free campaign on a dormant ticker, it was for Great China International Holdings, Inc. (OTCMKTS:GCIH) on August 23 and it's pretty clear from the chart on the right that the value has dropped way below the pre-pump figure with little chance of going back up.

There is a great likelihood of PLLX doing exactly the same thing in the coming days and a reason to believe that this will happen is the lack of anything to support some sort of consistent growth. Apparently, they have licenses for some online games that are played in South Korea as well as in the US, but looking at their financial statements, we can see that the general public are not exactly jumping up and down with excitement. Revenues, although better than the ones for the same period of 2012, are pretty disappointing and the huge working capital deficit places some enormous question marks around the future. To give you a better picture of what we're talking about, we've summarized of the most important figures as found in the 10-Q covering the second quarter of 2013 below:

  • current assets: $23 thousand in cash
  • current liabilities: $3 million
  • quarterly revenue: $44 thousand
  • quarterly net loss: $122 thousand

The accumulated deficit of $139 million does little to inspire confidence and the fact that an online gaming venture lacks an operational website (the one listed on the OTC Markets page is down for the count) is of no help either. What's more, the company CEO's annual salary amounts to no more than $1.00 which suggests that PLLX probably aren't even trying that hard.

So, with the long-term investment option out of the way, at least for the moment, the only thing left to see is how the stock will behave in the coming sessions. Will it sink like Petrosonic Energy Inc (OTCMKTS:PSON) did yesterday? Or will it fly once more like Gilman Ciocia, Inc. (OTCMKTS:GTAX)? The heightened interest and Stock Mister's continuous advertising efforts make the future performance rather unpredictable. Whatever the results, you should be sure to tread carefully and use extra caution around this particular ticker.

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