This has proved to be a remarkable week for Portlogic Systems Inc. (OTCMKTS:PGSY). After registering gains of more than 24% on Tuesday, the stock once again exploded yesterday and gained 26.49% to close at $1.17. The recent interest in the stock can be largely attributed a paid promotional campaign by Caesar’s Financial Daily. In the midst of pump hype, investors should not disregard the horrifying historical analogies that the promoter name inevitably brings in light.
The financial performance
Moving beyond the promoter’s history, if the financial report of Portlogic is analyzed, there hardly seems any reason to stay invested in the company’s stock. As per the latest financial report, the company reported cash/cash equivalents of $1,500. The current assets stood at $63,000 and current liabilities came at $1.1 million. Portlogic reported revenue of $123,000 while net loss came at $40,000.
It is evident nearly four months ago the company had about $15,000 to its name in hard cash. Even if the cash was not for the $10,000 paid pump, that revelation should be enough to highlight company’s dubious nature.
A brief glance at the financial report said that on March 26, a convertible loan of $20,000 was given to Fenwood Capital by another entity. On May 5 Fenwood Capital decided to convert the loan into 1 million shares of common stock priced at $0.02 per share. The common stock was released on July 15, 2015. It is important to note that this was committed after the 1-for-750 reverse split in March 2015.
Portlogic Systems share structure reveals that as of May 31, 2015, the company reported 275,784 outstanding shares which then surged to 33.5 million in mid-September.
The month of September has seen Portlogic Systems Inc. (OTCMKTS:PGSY) appreciating by more than 300% already and now has reached a major resistance area. The volume leaped to 570,000, which compared to the daily average of 67,000, showed a considerable jump as it was the highest volume in the last 12 months. The price also jumped by 26.49% in the last session but the day high took place at $1.34, exactly at the previous swing high. The bulls must manage a firm break above that support turned resistance right now or this illiquid stock may suffer a sharp correction.