Pollex, Inc. (OTCMKTS:PLLX) is a micro-cap name that has started to pop off its lows in recent trade. The movement represents a clear change in behavior and trading volume and has not been accompanied by any particular news out of the company that updates the fundamental picture for the name. So, as you can imagine, the SEC is interested in the situation.
In fact, on Tuesday, PLLX had to respond to an inquiry, and its response was posted as a press release for the investment public: Specifically, the company announced that “it has been made aware of recent trading and promotional activity concerning PLLX common stock. The Company has been informed that the higher than average trading volume in the Company’s stock may be the result of promotional activity. The Company has been informed that an email from ProTrader was sent out promoting PLLX. The Company was not aware of this promotional activity.”
Pollex, Inc. (OTCMKTS:PLLX) trumpets itself as an online gaming business. The company acquires new game licenses and makes these games commercially available in South Korea and the United States. PLLX primarily offers The Great Merchant, an economic based massively multiplayer role playing PC game through thegreatmerchant.com.
According to company materials, “Pollex, Inc. was formed in 2001 to be an online game publisher. Pollex, Inc. is currently operating the online game, The Great Merchant, at its website http://www.thegreatmerchant.com. Players can download the game for free from our website and interact with other players in the game to trade, fight, and explore the game world.”
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“Pollex states definitively that the Company, its officers, directors and, to the Company’s knowledge, its controlling shareholders (i.e., shareholders owning 10% or more of the Company’s securities) have not, directly or indirectly, authorized or been involved in any way (including payment to a third-party) with the creation or distribution of promotional materials; and that the Company, its officers, directors and, to the knowledge of the Company, any controlling shareholders, have not sold or purchased the Company’s securities within the past 30 days.”
Interestingly, this is the second time that the PLLX has had to respond to such an inquiry over the past 4 months. The last time was in March, when the company announced that it “has been informed that the higher than average trading volume in the Company’s stock may be the result of promotional activity. The Company is unaware of any promotional activity.”
At this time, carrying a capital value in the market of $7.23M, PLLX either has no cash and no debt on the books or refuses to report its financial data. OTCmarkets.com has a standing skull and crossbones mark on the company’s site, which is obviously problematic.
We’ve witnessed just under 630% added to share values of Pollex, Inc. (OTCMKTS:PLLX) over the past month of action. This is emblematic of the stock. PLLX has evidenced sudden upward volatility on many prior occasions. Furthermore, the stock has registered increased average transaction volume recently, with the past month seeing exceeding 560% beyond what we have been seeing over the larger time frame. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $PLLX stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $PLLX, either long or short, and we have not been compensated for this article.