After writing up dozens of pump and dump scams, I have to say it never gets old. In fact, it feels great to expose the dirt on these hyped up penny stocks. And DOGO is just another in an endless stream of paid penny stock promotions.
Penny Stock Finder was paid $17,500 to sing the praises of Digagogo. I was actually curious what business Digagogo was into, but after hours of research… I still have just a vague idea of what they do.
You see, DOGO is setting up private social networks so that neighborhoods and communities can connect and do business. To learn more, I popped onto their website. Sadly, I came away with very little idea of how they plan to make money.
I didn’t stop there. I went as far as checking out their Facebook page and found a YouTube video explaining their business. And after all that digging around, here’s what I came away with…
DOGO is set up to host small group social networking. This allows homeowners to set up personal sites and offer stuff up for sale, promote garage sales, etc… In addition, they have businesses sign up to advertise their products so they can market to everyone in the neighborhood.
Call me crazy… but if you were friends on Facebook with your neighbors, or even built group pages for your church, HOA, or neighborhood, you could just as easily announce your garage sales or share what local businesses are running great deals. So why again do we need DOGO?
I think that’s what investors are wondering too…
So far in 2011, the company brought in just $50,000 in revenue. And yet somehow, they’ve racked up a $7.9 million loss at the same time! Boy, programmers must really be expensive these days.
Except, the money wasn’t spent on programmers… but on the President of Digagogo instead! That’s right, the President was issued 30,000,000 shares for management fees. The shares were valued at $7.5 million at the time of issuance.
How does one have the audacity to collect such a huge payday when all you’ve done is bring in $50,000? These guys make US politicians look like saints!
Apparently the list of those sharing the wealth goes on and on.
A director of the company received 200,000 shares for management fees. And 1,000,000 shares were issued to a “non-related party” to acquire intellectual property valued at a mere $120,000. That represents
.12 per share.
Seeing as the shares now trade at
.065, I’d have asked for the payment in cash…
The problem is DOGO only has $1,133 in cash!
My opinion… DOGO is a real dog of a company. And someone’s resorted to hyping the stock to try to pump up the price. Who knows… could it be “that guy” who sold his “IP” for shares instead of cash?