Yesterday, PYTO jumped already before the market opened and provided at least the magnificent 43.75% gain. The stock closed at a price of $0.46 per share and the 15.5 million shares traded topped the three-year trading volume record from the beginning of the month.
At that time, PYTO announced a Non-Binding Memorandum of Intend (MOI) to acquire all the stock of Standard Gold Corp., a company engaged in the exploration of mineral properties. The final deadline for a definitive agreement is set for the end of December. Along with the MOI, PYTO has also provided its potential acquisition target with a loan of $30,000, to “maintain in good standing its rights to mineral claims”. That loan is also due on the same date: December 31, 2010.
The real price breakout for PYTO on the news did not happen, but a second attempt was made a week ago, though a reminder press release. The breakout failed again, and finally the promoters had to come into action. Yesterday, the number of trading alerts must have been enormous to justify the $140,000 paid in cash.
The generously paying third party seems also to be a kind of an online unregistered “investment advisor” and is probably holding positions in PYTO that it can dump on the market at any time and without any notice. As a low-priced and rarely traded stock, PYTO appears to be the perfect pick for such simple manipulations.
As for the company behind the stock, it is one with no significant cash or assets, no revenues and no marketable products. In it latest 10-Q, PYTO states to have been focusing its efforts on the development of an anti-cancer compound. Nine years later, the management is now wondering if it is worth to spend more on that compound, or search for other options. Correspondingly, this year the R&D expenses were cut off by almost 90%, while the the company spent five time more than previously on “Investor relations and marketing”.
PYTO stock may remain a hot pick for while and maybe now is the time of the shorters, since it is not known if the mining business will be more successful, or if Standard Gold Corp. has something else than a website.
