Do you remember the Dionne Warwick infomercials ru
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Do you remember the Dionne Warwick infomercials running late night on TV? It was 1991, and I can still picture the lovely Ms. Warwick all dressed up in shiny flowing attire pitching the Psychic Friends Network.
If you didn’t know, the company went bankrupt back in 1998 and the remaining assets, PFN Holdings, were recently acquired by a company called Web Wizard, Inc. It was a stock swap deal that went down in January of this year.
Basically, Web Wizard exchanged over 50 million shares of their stock for the PFN Holdings shares. In addition, they changed their name to Psychic Friends Network. At the same time, they secured nearly $750,000 in financing from Right Power Service, LTD.
The bottom line, the whole deal is just one big swap agreement that allows the new company to sell or swap stock so they can fund operations… shocking, huh?
And yet Squawk Box Stocks, among other pumpers, were paid $50,000 by Winning Media, LLC to pump shares of PFNI. What’s the line the pumpers are feeding everyone?
It’s just the usual over-hyped, over-stretched version of the truth…
A market they dominated a short time ago? 1998, is 14 years ago! They went bankrupt because of too much competition. Please…
And this is a $40 million per year organization? Maybe back 14 years ago, when they were still solvent. Right now, the most recent earnings report for PFNI show the company has $90 in cash, $0 in revenue, and a loss of $8,008 for the three months ending December 2011.
Where does the $40 million come in again?
Oh, in your dreams. Maybe you can dial up the psychic network and see how you can turn your $40 million dream into a reality! But I wouldn’t hold my breath on this one.
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