Todor Pichurov

Pump Spasms for Press Ventures, Inc. (OTCBB:PVEN)

by Todor Pichurov September 13, 2013
4PVEN_chart.pngYesterday Press Ventures, Inc. (OTCBB:PVEN, PVEN message board) had a huge volume spike and shifted nearly 40 times its average volume. The price that was squished in a late drop on Wednesday spent most of yesterday's session below that close but was squeezed 5% in the green immediately before the closing bell.

The reason why the stock of PVEN, which was in a state of hybernation and was barely traded, suddenly burst on center stage is a pump effort conducted by a number of promoters, most notable among whom is David Cohen sending his picks through his Research Driven Investor newsletter. On the day the first pumps his the inboxes of traders, the stock of PVEN dropped by nearly 17%.

PVEN is an enterprise that was formerly dealing with land prospecting and mineral exploration, with a very recent and unexpected switch into biosafety technology. Sadly, what they're showing in their books gives very little incentive for enthusiasm. The last quarterly from PVEN is for the period ending April 2013, and contains the following figures:

  • ZERO in cash and total assets
  • $26 thousand in liabilities
  • ZERO revenues since inception
  • $4 thousand in quarterly net loss

The only positive thing to be said about those grim numbers is that the company is not buried under a pile of debt. The company did a 50 for 1 forward split of its stock in 2013, significantly increasing the outstanding share count and brought its authorized shares up to 5 billion. PVEN issued a convertible note for the sum of $250 thousand in late August. The note converts at a discount of 25% against an averaged closing price prior to conversion, which is never good news for retail shareholders.

PVEN has shifted its business focus from mineral exploration into biosafety, with recent news of branching into the sector with the abovementioned $250 thousand financing. While the press release states that financing was easy to obtain, it fails to mention the conversion percentile discount the note holder received in the process.

The pumps did nothing for the price except a very short-lived morning spike on September 4 that ended in disaster by the closing bell. Unfazed by the performance of the first round of touts, other promoters touted PVEN on Monday and Wednesday of this week. Sadly with nothing to support the pumper claims that a "mega stock promoter" will pick up the ticker, the price caved in late Wednesday and closed the session nearly 47% down.

Investors are advised to be extra careful with promoted stocks as the unpredictable nature of pump jobs is obvious even in the short timespan over which PVEN was promoted. Remember to do your own research before putting your money in any stock.

NHLI_chart.pngOther pump jobs currently making the rounds include Nouveau Holdings Ltd. (OTCMKTS:NHLI) who crashed 55% yesterday and PacWest Equities, Inc. (OTCMKTS:PWEI) who were picked up by one of the big names in stock promotions and shifted a mind-boggling 474 million shares yesterday.

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