Pegasus Tel, Inc. (OTC:PTEL) is a perfect example of why investors should be careful. The internet sector was and still is relatively hot, but that doesn’t mean one should just go and throw his money into every company which claims to be something big.
While the company’s website still says Pegasus Tel, Inc. is “a global leader in web based technology solutions,” most investors in PTEL can tell you this is very far from the truth.
In early to mid 2011 PTEL was hyped by its CEO, Anthony Dibiase who has ties in other OTC-quoted companies. In fact, PTEL acquired its hyped up failure, MusicMatrix web site from Encounter Technologies (PINK:ENTI) and later a dividend was declared by Mr. Dibiase.
Long story short, both companies have been run into the ground and even if ENTI shareholders got their dividend it’s still worth next to nothing.
PTEL has managed to generate insignificant revenue and some losses, while in the meantime the dilution has been so huge it’s hard to imagine anyone made any money on PTEL. The company’s last financial report showed $525 as total assets.