Ben Franklin was hugely excited to channel the power of lightning bolts. Nowadays his experiments seem quaint, at best. However, there are still some who think they are reinventing the wheel, following in Franklin’s footsteps.
A new pump is doing the rounds, with promoters touting SEFE, Inc. (PINK:SEFE). The paid pumpers are working on a $35 thousand budget and are promising you clean, endless energy through SEFE’s technology.
Sounds exciting, except it’s really not if you take a look at the dealings going on in SEFE. The company was pumped back in April which led to the price reaching more than $2.75 per share only to drop more than 90% in about two months.
Those who got burned last time are unlikely to fall for the same trick again, but for the others, who may be new to the stock, this could pose a danger.
[BANNER]Apparently, the disastrous crash of the stock isn’t something the management considers important, as it didn’t make any attempt to protect the interest of potential investors during the pump; neither did SEFE offer any explanation for what happened after the crash. Instead the management, seemingly oblivious of the massacre issued press releases claiming business was proceeding as planned.
What about the financing deals SEFE has announced? That’s where things look even worse. SEFE is getting most of its funding through debentures issued to a Riverbend LLC. – a company which apparently operates from the Fairwood Shopping Center in Spokane. The registered agent for Riverbend happens to be Nascent Group, Inc. which is company run by Patrick Deparini, a former executive of SEFE.
Even with the dubious financing from Riverbend, SEFE’s latest 10-Q looks less than satisfactory:
total current liabilities amounting to more than three times total current assets
zero revenue over the last six months
net loss of $521,501 for Q2
The current pump is conducted by Global Marketing Media’s tout newsletters, including Penny Stock Circle. For the right amount these people are ready to pump just about any stock out there. Previously they promoted ‘gems’ like Life Design Station International (PINK:LDSI) and the results are visible on the chart.
Potential investors are advised to do their own due diligence and be extra careful, as with all paid pumps unless they want to be electrocuted or mutilated in any other way.
