Author: Michael Goode

How the uptick rule abetted illegal bear raids

This post was originally published on my GoodeValue.com blog on 5/12/2009. Due to blog moves it was not correctly moved to this blog so I have reposted it. 

The SEC Enforcement Division just put out a press release announcing a judgment against a stock trader who conspired with a brokerage CEO and another trader to evade the uptick rule and profit from manipulative short selling, creating ‘bear raids’. See the original SEC complaint [pdf] against Robert Todd Beardsley and his partner George Lindenberg for details (all the quotes that follow come from that document). The two used multiple accounts to attack various stocks with a concentrated barrage of short sales with the aim of quickly driving the stock price down. Beardsley even “utilized the identities of two foreign individuals to open additional Redwood [brokerage] accounts” in an attempt to cover up the scheme. The two violated the law by failing to observe the uptick rule (their short sales were all in NYSE stocks), by failing to properly mark their orders as short sales, and by trading with the intent to manipulate stock prices.

They made total profits of “approximately $2,400,000.” Evidently both men spent the money quickly, because by the time the SEC obtained judgments against them, both had few assets left and as a result Beardsley only had to pay $100,000 and Lindenberg had to pay $65,000. Now for the interesting part of the story. The duo’s illegal profits were possible only because of the uptick rule. Under the uptick rule, market short sale orders often could not be immediately executed. Those orders would pile up, waiting for an uptick. Market makers and those with special software (as Beardsley and Lindenberg had) could see those unfilled market short sale orders. The duo “looked for stocks where a large market sell order was waiting to be executed, which they surmised was a short sale order”; they would then quickly drive a stock down with short sales and then create an uptick to cover their whole position at a price that was often “one cent higher than their last sale.”

In one instance, they sold short 16,485 shares of Tesoro at prices ranging from $17.82 to $17.51; they covered the whole position at $17.52, covering into a market short sale order that could finally be executed. In this manner Beardsley and Lindenberg made about $2,000; they repeated this procedure throughout the day and their profits quickly piled up. This is the first solid evidence I have ever seen of an actual bear raid. Of course, this bear raid was made possible only by the existence of the uptick rule. Furthermore, the market participants who were most harmed by it were the hapless short sellers whose market short sale orders were executed at depressed prices. As to the so-called bear raids that supposedly occur because the uptick rule has been removed, I continue to doubt their existence. Without the kind of advance knowledge of big sell orders that Beardsley and Lindenberg had, it would be very unlikely for a bear raid to be profitable, as the buy orders to cover the short position would drive the stock back up as quickly as it fell.

Further Reading
SEC Press Release regarding Beardsley judgment
SEC Complaint against Beardsley & Lindenberg [pdf]
Final Judgment against Lindenberg [pdf]
Final Judgment against Beardsley [pdf]
The Trader’s Guide to the Uptick Rule

Disclaimer: No positions in any stocks mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well..

How I stopped StockPreacher’s Alanco bull raid

This post was originally published on my GoodeValue.com blog on 5/16/2009. Due to blog moves it was not correctly moved to this blog so I have reposted it. 

A lot can be said about short sellers.  One undeniable fact is that short sellers are the sellers of last resort. When everyone else wants to buy, the only ones who wish to sell are often short sellers. In fact, while many fear the depredations of short sellers manipulating the market with bear raids (of which there is little evidence), short sellers are the ones who protect the market from pump & dump schemes and bull raids (a bull raid being a concerted promotion of a stock when the promoter is not being compensated; certain stock pumpers will engage in these from time to time to enhance their credibility). It is worth noting that pump & dump schemes are common in OTC and Pinksheets stocks that usually trade for less than a dime per share, but there are almost none in higher-priced listed stocks. The reason for this is that margin rules and difficulties borrowing shares to short prevent short sellers from being the sellers of last resort for penny stocks. For listed securities they are more easily able to sell. It is the fear of short sellers that causes most stock pumpers to avoid stocks trading for over $1 per share on exchanges like the NYSE and Nasdaq.

Sometimes pumpers get a little cocky or a short seller gets lucky and a pump & dump runs headlong into the brick wall that is a motivated and well-funded short seller. Whatever the reason, this short seller was able to find plenty of shares to borrow of last Thursday’s pump of Alanco Technologies (ALAN). This pump (or in this case a bull raid, as the pumper reported having received no money to promote the company) came from stock tout Stockpreacher (about which I have written previously). Stockpreacher released its ‘report’ on the company just as the market opened and ALAN jumped 100% from an opening price of $0.49 to over $1.00 in less than a minute (this was no doubt caused by Stockpreacher’s idiot subscribers buying with market orders). The stock touched a high of $1.30 but very few shares traded hands above $1.05.

ALAN Daily Stock Chart (pump and dump day highlighted; click to enlarge)

Seeing that the stock was up an insane amount for no reason other than a bull raid and that there were shares available to short, I quickly started selling large blocks of shares. I knew that the only reason the stock was up was a bull raid and I knew from past experience that previous Stockpreacher bull raids dropped quickly from their highs. I quickly exhausted all 12,550 shares of ALAN available to short at my main brokerage, Interactive Brokers (see a screen shot of my trades there). I then moved on to another brokerage account that had shares available and sold short another 34,500 shares. I had an average short price of $1.01. My fusillade of short sales (I sold over 2% of that day’s volume in the span of a couple minutes) helped to keep the stock from hitting more outrageous highs than the already outrageous $1.30 it briefly hit. How do I know? Stockpreacher’s bull raid on BOSC from the previous week (for which no shares were available to short at any of my four brokerages) had driven the stock price from $0.60 to an intra-day high of $5.80.

ALAN Intraday Stock Chart (click image to enlarge)

About an hour and fifteen minutes after I first sold short, I covered my short position at prices between $0.60 and $0.65. I netted $17,322 for a few minutes’ work and I got the satisfaction of helping to counter the manipulation of a notorious stock tout. It was indeed a good day.

How You Can Profit from Pump & Dumps

Some fellow stock traders were impressed with my courage in short selling a stock that was up 100% on manipulation without even waiting for the buying pressure to ease up. My response  was simple: manipulation has its limits. I am now nearly an expert on manipulation and hype, having learned from Tim Sykes how to short sell manipulated stocks.  I knew from observing the previous Stockpreacher bull raids that the stocks always dropped quickly from their intraday highs. There are no easier trades than short selling a stock that has been manipulated 100% higher when you know the manipulation is going to cease (Stockpreacher does not keep pumping the stocks it selects for bull raids after the initial day). That being said, it is scary to quickly take a large short position in a volatile stock. To do so requires both understanding hype and manipulation and confidence in being right. Unfortunately, until the last couple weeks (during which I have made several great trades), my confidence has been poor (like my trading) this year.

As I have mentioned repeatedly in my articles on becoming a stock trader (Part 1, Part 2) and in my Introduction to Evidence-Based Investing, the bane of any trader (or investor) is emotion. Fear and greed are both anathema to successful trading; a trader should be confident but not overconfident. Trading involves implementation of a specific plan; emotion will distract from the plan and lead to poor decisions. I have struggled with my trading this year, suffering from a large draw-down in my secret super-awesome trading strategy, suffering from meager profits in my pennystocking trading strategy (Tim Sykes’ strategy), and even messing up my arbitrage trades.

As a result of the above troubles, my account dipped into negative territory and I was feeling horrible. While I gained 5.13% in January and gained 5.32% in February, I lost 3.81% in March and lost 9.90% in April. I resolved to dial down my risk a bit and focus on fixing my trading errors. I revised my super-secret trading strategy (which had been responsible for 80% of my profits and losses) in a way that only slightly reduces returns while greatly reducing risk. For my pennystocking trades, I focused on getting my confidence back. The best way to do that is to focus on the easiest trades. So, knowing how easy it would be to profit from short selling a Stockpreacher pump, I followed each one and did not let my fears keep me from taking a huge short position in ALAN. It helped that I follow Tim Sykes and he kept reiterating the ease of profiting from stocks up on hype alone. That strategy seems to be working as I am now up 12.14% so far this month (and May is only half-over!).

Now I have my confidence back and will look to improve my performance in more difficult trades. Of course, there is no reason for me to abandon the easiest trades! If possible, I will gladly sell short 100,000 shares of the next Stockpreacher pump!

Disclaimer: No positions in any stocks mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well..

Blog update

Yesterday, on Thursday, February 22nd, a couple subscribers alerted me to the fact that my ReaperTrades.com blog and GoodeTrades.com blogs had been infected with the iframe malware/virus. If you visited either website over the last few days or week I suggest running a full virus scan as well as spyware/malware scan (Malwarebytes and Spybot Search & Destroy are both recommended). I also recommend clearing your browser’s cache. The infection was almost certainly due to a WordPress plug-in that I had not updated (my personal computer was not infected).

I have completely wiped the infected WordPress install and have installed a fresh version that I am now working on hardening to prevent any future problems. So far I have taken most of the steps to enhance security recommended by WordPress.

Also, my old blogs, GoodeValue.com and Reapertrades.com, have been taken down permanently and all their content will redirect to this blog (the posts have been mirrored on this blog).

We are all in this together … or not

Whenever you hear that phrase, “We’re all in this together,” be very, very cautious. That is what scammers will say to convince you to do stupid things with your money (like buying pumped stocks) and what both hucksters and even non-fraudulent trading gurus will say to try to get their hands on your money.

The simple truth of the matter is that everyone has different goals and priorities. The most important thing you can do is to make sure you are aware of how the priorities of those you deal with and listen to differ from your own. A stock promoter’s goal is simply to get you to buy stock — damn you and your kid’s college fund.  A trading guru who sells his services with an alert service or trading chatroom benefits the longer you subscribe. His financial interest is best served by selling something that you will continue to want or need for years and years. The guru’s monetary motivation will — ceteris paribus of course — cause him to charge as much as he can for as little as he can. He will sell you hard to get you to pay him more money.

Even saying that all traders care about is profits is wrong. Especially in the penny stock world there are many of us who are motivated by other things besides profits (of course we are all motivated to a large extent by profits). I remember getting a bunch of flak from commenters on this blog when I accused a certain pumper of violating securities laws (six months later the SEC sued him). People attacked me for potentially destroying profitable trading opportunities. But I along with most other bloggers don’t just do this for money.

At the end of the day, each of us is motivated by different things, some of which are obvious, some of which are not. Money is the most obvious, but most of have emotional motivations — we genuinely want to help those we come across. Some of us have other motives that drive us, more powerful motives. When the time comes, my motivations will be made clear. In the meantime, let us embrace the motto “All for one, one for all, and every man for himself!”

 

Disclaimer: No positions in any stocks mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well..

Pumper Crazypennystocks.com is two separate legal entities

It appears that the stock promoter known to me and others as Crazypennystocks (despite not using that website for over a year and running a number of other websites) is split into two seperate legal entities, at least according to their disclaimers. Actually, this happened first when Crazypenny websites first starting disclosing compensation (on the QOIL pump in September 2010 when Pennystockadvice disclosed $10,000 in compensation and SecretPennyStocks disclosed $5,000 Canadian in compensation) but I did not notice it until now.

See the images below:

PennyStockAdvice.com discloses $20,000 in compensation already received but does not disclose the third party payer.

SecretPennyStocks.com discloses an expectation of receiving €15,000 and discloses its ownership by Centro Azteca S.A and payment “from a third party through the Tengeria Foundation”.

Disclaimer: No positions in any stocks mentioned and no connection to the stock promoters mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well..

Taxes for day-traders

See the embedded video for a quick summary of the major tax issues for traders and what business trader status means. Obviously I am not a CPA and I have no formal accounting training. Please see JK Lasser’s Your Income Tax 2012 and Robert Green’s Tax Guide for Traders. If you want to really get hard-core, see the relevant IRS publications:

IRS Publication 550
(the portion of this that relates to business traders as opposed to investors is excerpted below the video)

Please note that futures contracts are treated differently and I do not address that in the video.

Here is the relevant portion of IRS Publication 550 on business traders:

Special Rules for Traders in Securities

Special rules apply if you are a trader in securities in the business of buying and selling securities for your own account. To be engaged in business as a trader in securities, you must meet all the following conditions.

  • You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation.
  • Your activity must be substantial.
  • You must carry on the activity with continuity and regularity.

The following facts and circumstances should be considered in determining if your activity is a securities trading business.

  • Typical holding periods for securities bought and sold.
  • The frequency and dollar amount of your trades during the year.
  • The extent to which you pursue the activity to produce income for a livelihood.
  • The amount of time you devote to the activity.

If your trading activities do not meet the above definition of a business, you are considered an investor, and not a trader. It does not matter whether you call yourself a trader or a “day trader.”

Note.

You may be a trader in some securities and have other securities you hold for investment. The special rules discussed here do not apply to the securities held for investment. You must keep detailed records to distinguish the securities. The securities held for investment must be identified as such in your records on the day you got them (for example, by holding them in a separate brokerage account).

How To Report

Transactions from trading activities result in capital gains and losses and must be reported on Form 8949 and Schedule D (Form 1040), as appropriate. Losses from these transactions are subject to the limit on capital losses explained earlier in this chapter.

Mark-to-market election made.   If you made the mark-to-market election, you should report all gains and losses from trading as ordinary gains and losses in Part II of Form 4797, instead of as capital gains and losses on Form 8949 and Schedule D. In that case, securities held at the end of the year in your business as a trader are marked to market by treating them as if they were sold (and reacquired) for fair market value on the last business day of the year. But do not mark to market any securities you held for investment. Report sales from those securities on Form 8949 and Schedule D, as appropriate, not Form 4797. See the 2011 Instructions for Schedule D.

Expenses.   Interest expense and other investment expenses that an investor would deduct on Schedule A (Form 1040) are deducted by a trader on Schedule C (Form 1040), Profit or Loss From Business, if the expenses are from the trading business. Commissions and other costs of acquiring or disposing of securities are not deductible but must be used to figure gain or loss. The limit on investment interest expense, which applies to investors, does not apply to interest paid or incurred in a trading business.

Self-employment tax.   Gains and losses from selling securities as a trader are not subject to self-employment tax. This is true whether the election is made or not. For an exception that applies to section 1256 contracts, see Self-Employment Income earlier under Section 1256 Contracts Marked to Market.

How To Make the Mark-to-Market Election

To make the mark-to-market election for 2012, you must file a statement by April 17, 2012. This statement should be attached to either your 2011 individual income tax return or a request for an extension of time to file that return. The statement must include the following information.

  • That you are making an election under section 475(f) of the Internal Revenue Code.
  • The first tax year for which the election is effective.
  • The trade or business for which you are making the election.

If you are not required to file a 2011 income tax return, you make the election by placing the above statement in your books and records no later than March 15, 2012. Attach a copy of the statement to your 2012 return.

If your method of accounting for 2011 is inconsistent with the mark-to-market election, you must change your method of accounting for securities under Revenue Procedure 2011-14 (or its successor) available at www.irs.gov/irb/2011-04_IRB/ar08.html. Revenue Procedure 2011-14 requires you to file Form 3115, Application for Change in Accounting Method. Follow its instructions. Enter “64” on line 1a of the Form 3115.

Once you make the election, it will apply to 2012 and all later tax years, unless you get permission from the IRS to revoke it. The effect of making the election is described under Mark-to-market election made, earlier.

For more information on this election, see Revenue Procedure 99-17, on page 52 of Internal Revenue Bulletin 1999-7 at
www.irs.gov/pub/irs-irbs/irb99-07.pdf.

 

Disclaimer: I AM NOT A CPA OR TAX EXPERT! What I say above may be wrong. Please consult your CPA or tax lawyer for tax advice. I use Green’s accounting firm to prepare my taxes. The links for the above books are using my Amazon.com affiliate link. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well..

Update on OTC Solutions / Golden Dragon Media / Pudong LLC (allegedly) stolen email list lawsuit

See my earlier post here.

OTC SOLUTIONS, LLC , GOLDEN DRAGON MEDIA, INC.  and PUDONG, LLC

It appears that the above plaintiffs are in talks with iContact to reach some sort of settlement. Letter from 1/6/2012 (pdf). The settlement would have to be with iContact because I can’t find any record of iContact turning over the names of the John Does who are the defendants

See this memorandum opinion (pdf) from October 5, 2011. I am not quite sure what that means.

Disclaimer: No relationship with any parties in the suit. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well..

SEC sues Wolfson brothers for naked short selling

The SEC just sued two brothers, Jeffrey A. Wolfson and Robert A. Wolfson, for violating Regulation SHO, which governs short sales.

SEC press release
SEC complaint (PDF)

All quotes below are from the SEC Complaint.

The allegations are rather complicated, but the essence is that they abused in multiple ways the market maker exception from the Reg SHO rule requiring locates of stock sold short:

The Respondents in this matter, who were not conducting bona-fide market making activities but were instead engaged in “naked” short sale transactions for their
personal investment purposes, improperly utilized the Market Maker Exception from Rule 203(b)(1) in order to avoid locating shares before effecting short sales as part of “reverse conversion” and “assist” transactions, as further described below. Because the Respondents failed to borrow or arrange to borrow securities to make delivery when delivery was due, the short sales as part of the reverse conversions and assists were “naked” short sales. These
same Respondents also violated Rule 203(b)(3) by repeatedly engaging in a series of sham transactions to ostensibly “reset” the thirteen-day clock for complying with the close-out requirement, but without actually purchasing shares in a bona fide transaction. These sham transactions enabled the Respondents to circumvent Reg. SHO, allowed them to generate millions of dollars in profits because they did not actually borrow or arrange to borrow the
securities they were selling short, and caused their clearing broker to have large persistent fail to deliver positions in these threshold securities, thus undermining one important
purpose of Reg. SHO.

 

One interesting thing is that these transactions were designed not to short stocks for the Wolfsons’ accounts but to enable them to essentially lend out hard to borrow stocks and profit from the fees:

9. Reverse conversions are executed to meet a one-sided market demand for hard-to-borrow threshold securities. The buyers of the threshold securities, in this case
large prime brokerage firms, engaged in the conversion transaction that allowed them to 4acquire a long stock position that is hedged by the synthetic short options position. The brokerage firm could then loan out the shares of the threshold securities and received fees from the borrowers. Those loan fees can be quite significant when the stock is a threshold security, because threshold securities are generally hard to borrow and therefore command
large fees in the stock loan market. Indeed, the borrow rate (referred to as a “negative rebate” because it is paid by the borrower to the lender) on a threshold security can be as
high as 50% of the stock’s market price (on an annualized basis), as compared to a small positive rebate that a financial institution borrowing securities would receive from the lender to compensate for cash collateral it posts to the lender when a security is easy to
borrow. In many cases, certain threshold securities could not be borrowed at all. Alternatively, if the shares could be borrowed, the price to borrow was often much higher
than the price at which the Respondents were willing and able to transact in reverse conversions because they did not have and did not intend to actually buy or borrow the
stock they were selling short.

 
10. As a result, the Respondents, who did not comply with the “locate” requirements of Rule 203(b)(1) before selling the stock and did not comply with the close out requirements of Rule 203(b)(3), were able to attract the business of prime brokerage firms seeking to create inventory for stock loans on hard to borrow securities.

 

A couple conclusions that I draw from this are that yes naked short selling is real, but it is not easy to do. Also, there is still no evidence of the ‘evil naked shorts’ who use their naked short selling to manipulate lower price of certain stocks.

 

 

Disclosure: No positions in any companies mentioned above and no connection to any parties named above. I was friends with a Wolfson in college but I doubt that he is related. See my terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

 

Seriously, Eric Nguyen & Jay Fung?

I am not happy with the above pumpers changing from a text to an image with a difficult to read font for their disclaimer. Here is their current image disclaimer:


(click image to see full size)

For those with bad eyes, the important part:

Please be advised that P ennyPic.com’s affiliate free penny alerts has been paid six hundred thousand dollars by a non affiliate third party nahualate s a [sic] for a one month profile of north springs resources corp. [NSRS]

Disclosure: No positions in any companies mentioned above. See my terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

Shorting El Chupacabra … the paid promotion of Nasdaq-listed SAPX

I love short selling pump and dumps. One of the problems with shorting pump and dumps though is that many of them are companies that have been put together for the sole purpose of being promoted and the insiders behind the pump control most of the shares, allowing them to potentially squeeze short sellers or prevent short sellers from finding shares to short prior to the stock dropping big. That risk is minimized when shorting listed companies. Listed companies that get pumped tend to be real companies with bad businesses and lots of disgruntled shareholders who are quick to sell into any spike. The large number of shareholders also means there is a good chance of finding borrows on shares to short.

My one regret of my trading in past years is that I have not been aggressive in shorting listed pump and dumps. I changed that this time. See my tweet from January 23rd in premarket: “We found the chupacabra … a current Nasdaq stock getting a paid promotion http://bit.ly/yUkARn Join chat to see what I do.” While I was trying to sell Tim Sykes’ service by using my affiliate link, those in chat could see what I did, which was short sell 3000 shares at $0.468 after commission at Interactive Brokers. Unfortunately I couldn’t find more shares. But the next day the pump continued and I found a lot more shares, averaging to 34,000 shares short at $0.46392. While I got squeezed to a high (briefly) of $0.59 in late premarket, the stock ended the day at $0.43. The next day (today) it plunged right after the market open and hit a low of $0.34. I covered at an average price of $0.374 for a 19% profit ($3,065). See my trade on Profit.ly below:

$3,064 profit SAPX Short Stock
IB auto-import 1/10 to 1/26 (to catch NUVI short I was still holding from 1/10 to 1/17 import) still short NECA STEV

Interactive Brokers

Posted by MichaelGoode /
http://profit.ly/1Mml7F/?aff=174

Daily candlestick chart of SAPX (notice the front-run prior to the start of the pump on January 23rd):

Intraday 5 minute candles from 1/20 to 1/25:

The total compensation disclosed on SAPX (Seven Arts Pictures – Nasdaq) from pumpers I follow (trying to account for multiple websites being run by the same pumper) was $150,000.

Here are some of the disclaimers. First are the ones from the weekend of January 21/22/23:

PennyPickFinders.com:

Pennypickfinders.com expects to be compensated up to Thirty Five Thousand Dollars by a third party for a two day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ). Pennypickfinders.com was previously compensated Fifteen Thousand Dollars by a third party for a one day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ).

MarketCaliber.com (exact same as the above so I figure they are the same)

MarketCaliber.com expects to be compensated up to Thirty Five Thousand Dollars by a third party for a two day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ). MarketCaliber.com was previously compensated Fifteen Thousand Dollars by a third party for a one day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ).

ResearchDrivenInvestor.com

RDI aka research driven investor llc has been previously compensated forty thousand dollars cash by legacy media group inc, a non-affiliated third party to profile SAPX for a one day investor relations campaign. RDI aka research driven investor llc has been compensated an additional forty thousand dollars cash by legacy media group inc, a non-affiliated third party to profile SAPX for a one day investor relations campaign. To date RDI aka research driven investor llc has been compensated eighty thousand dollars cash.

PennyStockProphet

PennyStockProphet.com expects to be compensated up to Thirty Five Thousand Dollars by a third party for a 2 day advertising agreement regarding Seven Arts Entertainment Inc (SAPX: NASDAQ)  PennyStockProphet.com was previously compensated Fifteen Thousand Dollars by a third party, for a one day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ).  Additionally, PennyStockProphet.com was also previously compensated Thirty Five Thousand Dollars by a third party for an advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX.NASDAQ).  Total past compensation for advertising services has been Fifty Thousand Dollars by a third party for 2 seperate advertising campaigns regarding Seven Arts Entertainment Inc, (SAPX.OB)

PennyStockBullReports

 Penny Stock Bull Reports aka picks penny stock llc has been previously compensated forty thousand dollars cash by research driven investor llc, a non-affiliated third party to profile SAPX for a one day investor relations campaign. Penny Stock Bull Reports aka picks penny stock llc has been compensated an additional forty thousand dollars cash by research driven investor llc, a non-affiliated third party to profile SAPX for a one day investor relations campaign. To date Penny Stock Bull Reports aka picks penny stock llc has been compensated eighty thousand dollars cash.  To view our full disclaimer please visit http://www.pennystockbullreports.com/Disclaimer.aspx

SecretStockPromoter:

 SecretStockPromoter.com expects to be compensated up to Thirty Five Thousand Dollars by a third party for a two day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ). SecretStockPromoter.com was previously compensated Fifteen Thousand Dollars by a third party for a one day advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ).  Additionally, SecretStockPromoter.com was also previously compensated Thirty Five Thousand Dollars by a third party for an advertising campaign regarding Seven Arts Entertainment, Inc. (SAPX: NASDAQ). Total past compensation for advertising services has been Fifty Thousand Dollars by a third party for 2 separate advertising campaigns regarding Seven Arts Entertainment Inc, (SAPX: NASDAQ).

 

Right before the open on January 24th Jonathan Lebed and WallStreetGrand joined the pump party and dealt their followers huge losses as SAPX gapped up big (hitting .59 in premarket trading before opening at .52 and closing at .43)

My firm Lebed Biz LLC has been compensated by a third-party (Wall Street Grand LLC) $20,000 cash for a one-month SAPX investor relations contract.

 

WSG has been compensated $40k for a two day awarerness campaign on SAPX by a third party, Legacy Media Group Inc.

 

Disclosure: No positions in companies mentioned above. I have an ongoing business relationship with Tim Sykes that is explained in my terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.