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PureSnax International Inc (OTCMKTS:PSNX) On A Bull Run

PureSnax International Inc (OTCMKTS:PSNX) On A Bull Run
Written by
Alex Carlson
Published on
April 26, 2016
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InsidrFinancial

Source: PureSnax

Shares of PureSnax International Inc (OTCMKTS:PSNX) have been on quite a bull run for the past month. Shares have almost tripled during this time. Last November, an article was posted on Seeking Alpha that PSNX was set up to be pumped. Could the pumpers be finally getting to work?PureSnax International describes itself as "a functional food and healthy snacks company engaged in development, sourcing, branding and distribution of healthy food and snack products through its wellness brand." So far this year, there have only been two real press releases from the company. We doubt these had anything to do with the stock climbing up the charts as fast as they have.The first press release stated that the company had entered into an advertising and distribution agreement (the "Agreement") with the largest distributor of vitamins, supplements, personal care items, and sports nutrition in North America (the "Distributor"). The Agreement calls for the Distributor to offer select PureSnax products in its catalog for potential distribution to its network of over 7,000 retailers beginning April 1, 2016. PSNX President Pat Gosselin said:

"We are extremely pleased to have two of our most popular healthy snack foods, Wow! Krazee Korn and Wow! RiceDelites, accepted by the leading health and nutritional product distributor in the North American market. With two flavors of each of our popular products marketed by trained and experienced sales professionals to such a large potential buying group, we are confident that many new retailers and consumers will be introduced to our healthy snacks for the first time which should translate into increased sales."

In December, PSNX cancelled 300,000,000 of its common shares. Following the share cancellation, that left 100,000,000 shares of the Company's common stock issued and outstanding. To illustrate how new the company was, PSNX said that it was focusing on expanding its corporate governance structures and establishing systems and policies that will allow it to effectively handle large volumes of sales and ensure steady, controlled, and responsible growth within the multi-billion dollar snack food industry. President Pat Gosselin said:

"Being a new public company, we understand that establishing proper internal controls and bringing in key individuals at this important stage will ensure that we are able to meet our regulatory responsibilities and potentially accelerate our development. Over the next few weeks, ‎we anticipate introducing new team members that will supplement and compliment areas we have identified as being important to our growth and long-term viability."

The only other news to come out of the company was interviews with SmallCapVoice.com and CEOLIVE.TV. These make for added press releases, but rarely do investors watch or listen to these interviews. They certainly do not generate new buying or bring new investors into the stock. They usually only end up keeping existing investors in the stock by building faith in management.Currently trading with a market cap of $71 million, PSNX has no revenues or assets. Shares have been driven higher by a promotional campaign that has boosted the price of PSNX shares. Luckily, investors who have gotten in already got in as the pump was just getting started. One of the best ways to make money in penny stocks is by identifying stocks before they got pumped and get in early. These allows investors to benefit as the price gets pushed ever higher by the wave of buying generated from promo emails, boiler room calls, and message board pumpers. We recommend investors to book profits at current levels. Don't be left holding the bag! We will be updating Insider Financial as soon as we know more. For continuing coverage on PSNX, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in PSNX and have not been compensated for this article.

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