Jovita Baltrusaityte

Is Power Sports Factory, Inc. (OTCBB: PSPF) Going to See the Light in the End of the Tunnel?

by Jovita Baltrusaityte August 17, 2009
loj.jpgLast week, Power Sports Factory announced that it has received an order for Bike Sharing Systems to be deployed at a major educational facility on the East Coast. However, still there are still things that worry me and limit my trust in this company.

Power Sports Factory, Inc. (PSPF.ob, or OTCBB: PSPF) imports, markets, distributes and sells motorcycles and scooters.

If the order mentioned is real, it should bring nice money. I hope this is not the case when a company creates hype about its performance in order to attract investors.

All in all, PSPF made a deal with and wasted 158,000 free trading shares. If counted at the present price of $0.085, that would be almost $14,000. On the one hand, with current assets of $1,775,000, this sum of money isn't huge. However, 92% of the assets represent inventory to be sold. Thus the real money in the bank for PSPF is $144,000. Unfortunately, it is not enough to pay all the liabilities which exceed 7 million dollars.

In addition, the falling share price does not promise a bright future. On Friday, the stock lost 6% of its price and settled at $0.085. If you look at the chart, you will notice a slight downtrend which might lower the share price for some time.


All in all, is Power Sports Factory, Inc. going to see the light in the end of the tunnel at last? Or will it remain in darkness for the rest of time?


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