Todor Pichurov

Refill Energy, Inc. (OTCMKTS:REFG) Slows Its Roll

by Todor Pichurov September 4, 2013
REFG_chart.pngAfter an explosive streak last week which nearly doubled the price of Refill Energy, Inc. (OTCMKTS:REFG, REFG message board), the stock slowed down a little and closed yesterday's session 6% up, with volume picking up even more, as more investors turned their eyes towards the company.

REFG, now referring to itself as Medical Cannabis Payment Solutions, announced a merger with a Medical Cannabis Financial Group in early August. The announcement claimed that the post-merger entity will not only deal in the medical green plant business but also keep developing software, which was REFG's previous line of work.

With about a dozen penny stocks competing in the medical marijuana market, what is REFG bringing to the table that could turn the tables in their favor? Not an awful lot it seems. Here is how the company looked like as of their latest financial report dated June 30:

  • $2.9 thousand in cash
  • $111 thousand in current liabilities
  • zero revenues for 2013
  • $56 thousand in net loss for 2013

The closest indication of any revenues starting to flow in REFG's coffers is an announcement that the company intends to start selling its cloud-based VOIP suite but the press release gives very little specific information and contains neither a date for the software's launch, nor a price point. How the company intends to advertise, sell or market the product is also not too clear as their website, which initially triggers a mallware warning page in every browser, seems to be down and returns a 'not found' page.

Most disturbing of all is the fact that there appears to be a pump campaign for REFG that's flying mostly under the radar. The stock is promoted through radio ads that multiple investors on discussion boards ran into. Considering the company's limited resources, this advertising campaign takes on the unpleasant air of a regular pump job carried out through a different channel, which, as an added bonus, is more difficult to trace. The stock has quadrupled in price in the space of a month and REFG issued 10 million shares in Q1 of 2013 to clear just $10 thousand in convertible debt, i.e. the note holders got their shares at $0.001 per share. Traders should be able to put two and two together and figure out who, potentially, stands to gain massively from offloading those shares at the current prices.

02XUII_chart.pngAnother recently promoted stock is Xumanii International Holdings Corp. (OTCMKTS:XUII), the live broadcaster that was finally flattened despite the best efforts of stock promoters. The chart can give investors some idea what happens when pumps go bad, except XUII ran for so long because it was backed up by the two biggest promoter outfits out there and the email campaigns were extended and relentless in their hilarious promises. The stock lost another 14% yesterday to stop at $0.04.

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