REFG – Pump And Dump Spotlight
In the world of penny stocks, you’re sure to find oodles of great, unknown companies to invest in. But there are also penny stock scams designed to bilk hard-earned cash from investors. And usually you’ll know its hit you after you’ve watched your investment evaporate into thin air!
We know what to look for, and tell you who’s out there pumping stocks using paid promoters.
It’s our job to expose penny stock pump and dump scams…
And we take real pleasure in putting the smackdown on the latest penny stock pump and dump scams.
As you read, you’ll see the big red flags we’ve come across on these companies. And with all the great penny stocks out there… there’s no reason to put a single dime into any of these companies!
This week, we’re exposing a pump and dump scams on: Medical Cannabis Payment Solutions, REFG
With marijuana stocks popping left and right since the drug was legalized for sale in some US states, I felt we should take a look at one of the hottest- REFG. I’m not even going to use their name, as it’s a mouthful!
Unfortunately, just because a stock is hot- doesn’t mean you should buy it. In fact, in this case… I wouldn’t touch REFG if you paid me!
Red Flag #1: Paid PUMP!
Penny stock prophet is getting paid by Microcap Innovations, LLC. Here’s what I dug up in their disclaimer…
“PennyStockProphet.com was previously compensated Twenty Thousand Dollars by a third party, Microcap Innovations LLC, for past profile coverage of Medical Cannabis Payment Solutions (REFG)”
That’s $20,000 to email their huge database of hopeless folks looking for any “next best thing”- worth it or not.
And REFG is far from worth it.
Red Flag #2: Not Filed w/ the SEC & Multiple Past Company Names
Is the company you want to buy stock in one with multiple past lives? Well if you buy shares of REFG, then that’s what you’re getting.
Not only has this company failed to file finaicial reports with the SEC, but they haven’t filed anything since 2000! Well, they did file to notify the SEC they were no longer registering their stock 8 years later in 2008.
But that was when they company was known as WCOLLECT.COM, INC.
Ready to buy shares yet? Well, it gets better…
A year later the company emerges as an energy company. Here’s from their 2009 financial report: NOTE: Not filed with the SEC.
“GRANITE ENERGY, INC. (the “Company”, formerly Wcollect.com, Inc.) was incorporated in the state of Nevada on December 1, 2005. The Company operates in the oil and gas exploration and production industry, with primary assets and operations in Nevada, Utah, Oklahoma and Texas.”
And if that wasn’t enough, we check in again with this company in 2010 and find out they’re operating as Refill Energy, Inc.
So the stock you’re now trading is carrying a lot of baggage- REFG has been at least 3 different companies in its former lives.
If you’re holding shares of REFG, pay attention to this detail from their latest financial report:
“We have declared a dividend to our shareholders of our formerly wholly-owned subsidiary, Refill Energy, and intend to spin it off to our shareholders pending regulatory approval. In July, 2013, we formed a new Oklahoma subsidiary to hold these assets.”
And finally, REFG has $35,000 in cash but posted a $22,000 loss for the 3 months ending September 2013.
Certainly you can find better places to put your money, and this penny stock that’s being promoted isn’t anything I’d recommend.
The Wrap Up:
Too many investors get sucked into these nightmare penny stocks scams. They fall for the overly-optimistic projections the paid promoters are selling. In the search of easy money, investors lose sight of what a real return should be… and end up holding the bag.
When investing in pumped penny stocks, it’s the ultimate case of “let the buyer beware!”