Pegasus Tel Inc (PTEL)

[Risicare]

One of the most important things in doing real due diligence on penny stocks is examining the background of the management. Cut and pasting a bunch hype from press releases that sounds fancy and regurgitating basic information is not most definetely not due diligence.
No matter what the company does or what sector they are in bad or dishonest managementent can and likely will nullify anything else good. One should look at the past actions and statements made in business and life. Then verify the veracity of claims and look at results and actions. Are they honest? Are they fair to shareholders? Do they do as they say? Are they successful? Do they take responsibility or blame others? etc.....
Here is a very brief start on the CEO of PTEL, I will expand on it in future and touch on the other most important points of doing proper due diligence in the penny stock world.
Officer history - Anthony Mark Dibiase
Previous companies-
Strategic rare earth minerals, this shell was hijacked, pump and dumped and then abandoned. The use of hijacked shells is a major warning and all folks involved in such actions should be avoided. The outstanding share count was taken from ~80 million to almost 5 billion in less than one year with a whopping 26 press releases in 4 months accompanied by massive share dumping. The company managed to do absolutely nothing as far as success despite the ~13 thousand dollars spent on PRs touting various things including the two about retirement of shares which is quite ironic considering the massive and brutal dilution.
http://finance.yahoo.com/news/SREH-CEO-Announces-iw-3135826258.html?x=0&.v=1
The share price now sits at no bid with the shell abandoned and shareholders completely wiped out with no explanation whatsoever from the CEO.
Anthony Dibiase's salary 60 000$ per year

Encounter Technologies, In approximately one year the outstanding share count was taken from 2 billion to 12 billion and the share price now sits at .0001 with no assets and a dire need for money to implement any business. The only thing shareholders have been left with is the promise of a dividend in PTEL . The dividend has dubious conditions attached and despite being in the works and touted for months has still not been approved by FINRA at this point.
CEO Anthony Dibiase's salary 120 000 per year

A quick look back at a few PRs from strategic rare earth. Looking though just a handful of past PRs I find a lot of hype and name dropping but no real action.
http://www.knobias.com/story.htm?eid=3.1.2d12e94af38cf74a5fc3943b502f2f033392847e25a6e721cb3c3f9b10a438e3
development of music matrix Iphone app 06/10/2010 - vaporware, nothing

http://www.knobias.com/story.htm?eid=3.1.ea0cfc43a54b31de277aa28e78e95d66439693c07cee94d2bca280bd36e05c5f
"Mobile2Earth.com is currently in the process of adding a diverse, break-through collection of 100 applications to the site for purchase. "
well there seem to 6
http://www.knobias.com/story.htm?eid=3.1.e836c4453db9ffe490121bcc29df483cce0cfc09ddea58d328ea637094decd9c
"Mobile2Earth projects it will sell more than 11 Million applications and gross $11,137,499 in revenue by July 31, 2011. "
ZERO actually? or what?

http://www.knobias.com/story.htm?eid=3.1.4208ecfbd1160287215dbe54f6b6a675cc221e9fb58d52b93d37ecb35a5cf678
"The company formerly retired 140 million shares and the recent retirement of an additional 360 million shares is part of an aggressive campaign resulting in 500 million shares cancelled and retired to date. "
80 million to 5 billion outstanding in a matter of months and a few months after this PR the company was abandonded. This type of PR while diluting could liklely be actionable under securities regulations.

http://www.knobias.com/story.htm?eid=3.1.b608fc5ce5a6fb53d621fea6ea6c0c9cfc86e163f29bbd7d0dbf9059242c29ca
"Mobile2Earth (www.mobile2earth.com) is pleased to release iPhone apps ready for deployment as part of a 20+ app launch over the next 60 days at www.mobile2earth.com."
Well there appear to be 6 on the site and the site is broken.

After the several dozen PRs of puppy dogs and rainbows Dibiase abruptly left after 5 months
http://finance.yahoo.com/news/Strategic-Rare-Earth-Metals-iw-1156196566.html?x=0&.v=1 and the company was completely abandoned supposedly putting the old CEO from its time as an empty shell back in charge. The only word from the company since was an absurd PR claiming they are mining gold in Nicaragua now. No explanation as to what happened at all.
http://www.msnbc.msn.com/id/40701744/ns/business-press_releases/t/strategic-rare-earth-metals-inc-acquires-nicaragua-gold-corp/

Are these the actions of somebody you can trust with your money? A persons history and actions tell you all you need to know. The PRs from this first company appear to either be fluff with zero substance or extrordinary things that did not come true. There have been no explanations, no results and massive shareholder dilution.