A few weeks back, I wrote a blog about PXCE.  You can read it by clicking this link. I was first alerted to the stock by reading numerous posts  (so numerous that it was obnoxious) from James516 on our chat room.  The guy was pumping this stock like it was the next, great stock…a sure thing…a no-brainer.  I am always looking for good ideas, so I started researching it.

Just like the title of my first blog on this stock…”There was no there, there”.  I actually started to anti-post him (if that is a word).  When he would come into our room and start posting about this junk stock, I would fire back and let people know that it was a stock to stay away from.  James would come back to me with the hype…press releases, new technologies that would set the world on fire, etc…  But, never any substance.

I like a hype stock as much as the next guy, but there was no reason for this to be a $10 stock.  Well, on April 28th, I got some support on my position.  The SEC issued a temporary suspension of trading in PXCE.

Their release No. 59827 stated:

The Commission temporarily suspended trading in the securities of Pax Energy, which are quoted on the OTC Bulletin Board and on the Pink Sheets operated by Pink OTC Markets Inc. under the ticker symbol PXCE, because it appears to the Commission that there is a lack of current and accurate information concerning, among other things, an acquisition by the company, the value of the company after the completion of the acquisition, and the company’s current and future financial condition.

This is a reminder of why we, as investors, need to be leaders not followers.  There are any number of great small-cap  stocks to invest in….this was not one of them.  Someone who bit on this stock is really feeling betrayed and hurt right now.   Who knows how it will trade when it comes off suspension, but I am guessing a big downwards hockey stick.  I think we could be looking at a $.01 stock.

I just wish I could find some shares to short!