Penny stock trading is a risky maneuver on anyone’s part. On one hand, the stocks are very volatile, while on the other, the majority of these OTCBB stocks usually end up failing, or even worse, as elaborate, disguised scams. Usually when a hot new technology begins to enter the mainstream, you will see all sorts of OTCBB stocks coming out of the woodwork to claim that they have made a breakthrough within the field. This is not to say that they are all frauds, but as with all penny stocks, buyer beware!
This is why I viewed, with caution, a series of several overly optimistic press releases over the last few weeks from one company who only very recently entered the 3D printing industry. When companies seem to put more effort into trying to get people to buy their stock, than they do working on the actual meat and potatoes of the business, red flags pop up. By no means am I calling this company a scam, however, it does appear that some individuals are using the recent press to manipulate and drive up the price of a stock in a company which has yet to prove itself.
The company I have been investigating is Puget Technologies (OTCBB: PUGE), who claims to have a sub $500 3D printer coming to market soon, which will outperform some of the best devices on the market today. The funny thing is that the company is led by a CEO, Ron Leyland, who has no past experience in 3D printing, or any technology even closely related to 3D printing. In fact, his last venture was as the founder of Nexagen USA, a company which produced lotions, pills, patches, and drinks, and went bankrupt in August of 2011. This was after a laundry list of complaints on the Better Business Bureau’s website. A direct quote from the BBB is as follows,
“On July 25, 2012, the BBB sent certified correspondence to Nexagen regarding their pattern of complaints. To date, no response has been received by the business. Consumers are stating that they ordered a 14 day trial and are told they can cancel but when the consumer tries to cancel, they are not able to reach someone and the messages they leave are not returned.”
Yes, we have all made bad decisions in the past, perhaps even run companies into the ground, so that’s not to say Puget won’t live up to their current promises. Having said this, there are other issues which rub me the wrong way. In 2010 Puget Technologies had no interest in 3D printing, or any technology for that matter. In fact they were a distributor of luxury wool bedding sets, produced in Germany. After that, up until 2 months ago, Puget found themselves touting another trending business model, medical cannabis. Up until mid December, 2013, they were putting out several press releases per month touting the company’s subsidiary, Cannabis Biotech’s focus on “developing the highest quality cannabis products to meet the increasing need,” of the public.
After all that, the most recent quarterly filing with the SEC indicated that Puget Technology’s balance sheet consists of $8,810 in cash, and debt of $56,018. This was after the company spent $30,000 on a stock promo back in October. Information requested by our writers from Puget pertaining to their 3D printing aspirations have gone unanswered. Like I said before, this does NOT indicate that Puget is a scam in any way. However I do urge everyone to look at the facts behind this company prior to ever considering investing their hard earned money here.
Discuss this stock, as well as the company here: http://3dprintboard.com/showthread.php?1624-Puget-Technologies-%28PUGE%29-The-Truth-Behind-the-3D-Printer-Company
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