Microcap – Page 19 – Goode Trades

The End of Awesomepennystocks.com: Eric Van Nguyen says he was betrayed by John Babikian

I apologize for the slowness of this post. Life (and trading) have been quite busy this month. Jean-Francois Cloutier posted a new article about Awesomepennystocks.com / John Babikian on January 7th. Read the article (in French) in the Journal de Montreal. Below is a translation for those who don’t read French. See my prior post about Babikian. I think it is quite clear that Eric Van Nguyen’s portrayal of his involvement is self-serving — he is far from innocent.

A former close associate of John Babikian, the mysterious 26 year old Montreal resident who is being targeted by the AMF [Quebec securities commission] and Revenue Quebec (Quebec tax authority), says that he was betrayed by Babikian in the promotion of penny stocks.

Eric Van Nguyen defends himself by saying that he was naive in “lending” his account and name for some tens of thousands of dollars to Babikian so that Babikian coule promote penny stocks.

“At that time, I had no idea that this would become this big — you mustn’t doubt.”

Our investigative bureau succeeded in finding this young Quebec man who had been accused in 2009 along with Babikian of stealing a list of email addresses.

Van Nguyen says that he sold all his penny stock promotion websites in 2012. He did not want to reveal anything about the buyer of the websites other than that the buyer was outside of North America.

This man, who says that he initiated Babikian into the world of penny stocks, is extremely secretive and he has been invisible on the internet for several years. He has no Facebook account. Numerous acquantinces that he knew from his studies at Concordia University have no news of him. Rumors on the internet suggest that he is even in Singapore.

The luxurious mansion that he lives in in West Island is not in his name.

If he is still in Quebec despite the troubles of his old associate, it is because he was worried about his parents, he said.

“I could travel, sure, but I don’t want to leave my parents to deal with my problems. There are a lot of people who come to their door” since the publication of articles on John Babikian. [One of the addresses used for Golden Dragon Media appears to belong to his parents — that is easy information to find.]

Babikian wanted to hide himself

Eric Van Nguyen says that he met Babikian in 2009. At that time, he was himself already involved in the business of promoting penny stocks. His company, Golden Dragon Media, registered in Quebec, is behind a network of stock promotion websites. These sites send newsletters promoting speculative stocks that cost pennies.

“He wanted to know my techniques,” said Van Nguyen.

According to Van Nguyen, John Babikian paid him to use an account at PR Newswire. He was also able to manage websites affiliated with Golden Dragon Media (including Pennystockslove.com, Loveforstocks.com and Unrealstocks.com).

“Today, because of that, my name is in the garbage. He betrayed me — he ruined my name,” said Van Nguyen.

Why would John Babikian have wanted to use Van Nguyen’s name rather than his own, we asked him.

“He never wanted his own name to appear. The SEC had begun to scrutinize the stock promotion business.”

We were not able to reach John Babikian.

Revenue Quebec and the AMF want to meet him again

According to Van Nguyen, the world of pennystocks is just like a lottery.

“One can easily lose everything if you invest in them. To be frank, this is not an extremely white business. It is not black either but certainly grey,” he says. When promotion involves the use of spam emails “it becomes black” according to him.

Van Nguyen even mentions the presence of a member of the Montreal Mafia in the world of penny stocks.

Van Nguyen saws that agents from Revenue Quebec met him recently to understand how he became rich. The AMF (securities regulator) also asked him questions, but he refused to respond. Too risky, according to him.

“There is talk of an FBI investigation in the USA. One would also think that the RCMP [Royal Canadian Mounted Police] is also investigating,” he said.

More liens by Revenue Quebec

Revenue Quebec has been granted new liens on $6.6 million worth of John Babikian’s assets. Oddly, none of the properties are in his name. At least one director of a numbered company linked to Babikian, Rawad Adra, appears to be completely fictitious

Three properties adjacent to Babikian’s luxurious mansion on Rue des Anemones (Street of the Anemones) in Laval.

Value: $2.1 million
Area: 5665 square meters
Official owner: 9264-5076 Quebec Inc
Administrator: Rawad Adra
Shareholder: Tidal East Global
Relief: Robert Kalfayan, Gerard Babikian, Leonnel Iruke [I am unclear what this means in this context]

Sixteen properties in Nominingue, in the Laurentians, around Lake Lafleche

Value: $4.5 million
Total area: 360,478 square meters
Official owner: 9292-2095 Québec inc.
Administrators: Alima Beg, Ehsan Haque
Shareholders: None

Disclaimer: I am currently short USTU which is currently being promoted by Pennystocks.com, which up until at least the last stock promotion was run by the same people running Awesomepennystocks.com (presumably John Babikian). I have no relationship with any parties mentioned above. 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.

Centor $CNTO gets a repump

Centor was first promoted back in May and it never got much volume. After a low-volume run-up over the last two months from $0.14 to over $1.00 it finally got repumped on Monday, with promotion emails linking to the website http://centorenergyreport.com

Disclosed budget: $500,000

Promoter: Absolute Media Services & The Myers Letter

Paying party: Code Inc

Shares outstanding: 72,135,000
Previous closing price: $1.10
Market capitalization: $79 million

As of the market close on 12/31/2013 the price of CNTO is $1.84, giving it a market capitalization of $132 million.

Excerpt from disclaimer:

Centor Energy (hereafter “CNTO”), the company featured in this issue, appears as paid advertising, paid by Code Inc. Absolute Media Services has received a total of $500,000 USD from its client Code Inc, the third party advertiser for this advertising in an effort to build investor awareness for Centor Energy.

…

Inciti Inc., a corporation owned by an affiliate of Endorser, expects to receive up to a $7,500 fee for this advertising effort.

Full disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This paid advertisement by The Myers Letter (hereafter “TML”) does not purport to provide an analysis of any company’s financial position, operations, or prospects and this is not to be construed as a recommendation by TML, or an offer to sell or solicitation to buy or sell any security. Centor Energy (hereafter “CNTO”), the company featured in this issue, appears as paid advertising, paid by Code Inc. Absolute Media Services has received a total of $500,000 USD from its client Code Inc, the third party advertiser for this advertising in an effort to build investor awareness for Centor Energy. Although the information contained in this advertisement is believed to be reliable, TML makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize it. The information contained herein is based exclusively on information generally available to the public and does not contain any material, non-public information. Readers should perform their own due-diligence before investing in any security including consulting with a qualified investment advisor or analyst. Readers should independently verify all statements made in this advertisement and perform extensive due-diligence on this or any other advertised company. Inciti Inc., a corporation owned by an affiliate of Endorser, expects to receive up to a $7,500 fee for this advertising effort. TML and/or Inciti Inc. also expect to receive new subscriber revenue and mail list rental, the amount which is unknown at this time, as a result of this advertising effort. TML nor any of their principals, officers, directors, partners, agents, or affiliates are not, nor do we represent ourselves to be, registered investment advisors, brokers, or dealers in securities. TML is not offering securities for sale. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Research and any due diligence were conducted by an outside researcher for this advertisement. Endorser’s track record was compiled from calculations derived from documentation of his Transformational and Legacy Portfolio recommendations posted at the Emerging Capital Report website. Said website and documentation were made available to Emerging Capital Report subscribers. Track record indicates the maximum potential gains on open positions from the date said website suggested taking a position in securities and the prevailing prices at the time of such suggestions. No representation is made that actual purchases and sales were made or could have been made at the prices stated. Average gains are based on price appreciation of suggested stocks with stocks not appreciating showing appreciation of zero. Facts stated in this article were supplied to endorser from third-party sources. Endorser makes no representations as to such facts’ reliability, accuracy or completeness. Endorser is not responsible for errors or omissions. Endorser does not claim any special expertise or knowledge regarding the patent enforcement industry. Endorser is not acting as an investment advisor nor providing individual investment advice. Endorsement is expressly limited to the following statement: “Assuming that CNTO has or obtains sufficient resources the need for which is stated in its S.E.C. filings, and successfully addresses the risks therein, capital gains are possible.” The information presented is provided for information purposes only and the endorsement is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities. Endorser has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. Any securities referenced by Endorser may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments. Nothing in the endorsement constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. Past recommendation or suggestion performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates referenced in the endorsement reflect a judgment at its original date of publication and are subject to change without notice. The price and value of the securities mentioned in the endorsement can fall as well as rise, and may have a high level of volatility. High volatility securities may experience sudden and large falls in their value, leading to losses. High volatility investments may also be difficult to sell. Similarly, it may prove difficult for you to obtain reliable information about the value or risks to which such an investment is exposed. The endorsement may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of Endorser, Endorser has not reviewed the linked site and takes no responsibility for the content contained therein. Such address or hyperlink is provided solely for your convenience and information and the content of the linked site does not in any way form part of the endorsement. Accessing such website or following any link through this endorsement shall be at your own risk. Further, you are advised to read and carefully consider the additional explanations of risk factors in CNTO’s 10K and 10Q filings. Inciti, Inc., a corporation owned by an affiliate of Endorser, received $7,500 from Code Inc, who may or will sell shares of the feature company at or about the time of this mailing. Inciti, Inc. expects to receive additional revenue from sales of subscriptions to The Myers Letter as a result of this advertising effort.

PDF copy of pump page

Disclaimer: I am short 2400 shares of CNTO. I have no relationship with any parties mentioned above. 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.

Last pump standing: Tiger Oil and Energy $TGRO

With more and more mailer pumps getting suspended by the SEC and with AwesomePennyStocks’ mastermind John Babikian on the run, there are fewer big pump and dumps for me to blog about. The most effective remaining stock promoter is one that I have not yet blogged about: StickTips.com. Their last two pumps, AMMG and PGLO, both lasted for weeks and saw lots of volume and price increases upwards of 100% from when the pumps began. But the problem now is that being the best promoter is like painting a bullseye on your chest: that means the SEC Microcap Task Force will be out to get you sooner rather than later. I will address other reasons why I believe the SEC will actively investigate StockTips.com and their promotions after I describe their prior and current promotions.

Past StockTips.com pump and dumps

I only signed up to StockTips.com late in 2012 year so I did not receive any promotional emails from them prior to December 2012. The first promotion I received from them was for Gold and Gemstone Mining (GGSM) and I only received one email about it at 10:59 AM Eastern on December 5th, 2012. The prior day Premiere Consulting (pennystockparlay.com and related websites, formerly affiliated with bestdamnpennystocks.com) had begun the promotion of GGSM and two days later they were done.

StockTips.com disclosure on GGSM:

StockTips.com is operated by Amerada Corp (AC). Currently AC expects to be compensated $25,000.00 (Twenty-Five Thousand United States Dollars) from Laluna, Inc. for this GGSM advertising and promotion.

The second pump that I received from StockTips.com was about PacWest Equities (PWEI), which was promoted by Victory Mark Corp back in autumn 2012 and again by Victory Mark Corp and AwesomePennystocks.com in September 2013. Trading in the stock was quickly suspended due to the SEC crackdown on Awesomepennystocks.com and multiple blatantly false press releases.

While PWEI had been promoted back in the autumn of 2012 by Victory Mark Corp and by some lesser promoters, it received a new wave of promotion in February 2013. The new wave of promotion started February 10th with ImpressivePennyStocks.com / Todaypennystocks.com (paid $100,000 by Perfect Genius Investments, previously paid $100,000 by Green Meadow Enterprises back in 2012). Starting on February 11th, PWEI was promoted by StockExploder.com (paid $25,000 by Flip Ventures LLC). MicroCap Consultants LLC paid a few F-list promoters a few thousand dollars each to promote the stock at that time as well. Capital Financial Media also promoted PWEI and was paid $250,000 by Sancove Holdings Ltd.

I first received pump emails on PWEI at 8:00 PM Eastern on March 24th from StockTips.com. Their last email promoting it came at 11:44 AM on March 27th. Someone who bought PWEI on the first day and sold a week later could have easily lost 50%.

Compensation disclosed: $25,000
Paying party: Laluna Inc

Disclaimer for the PWEI pump below (click to enlarge):

The next StockTips.com pump and dump was AMMG, starting in July. But back in late May AMMG was promoted by a couple ineffective pumpers. I received pump emails after the close on May 21st from OTCPicks.com / PennyTrader news.net (paid $12,000 by Impexco Group). The last email sent by that promoter came on May 29th at 9:56 AM Eastern and then I received no emails promoting AMMG until StockTips.com promoted it.

The AMMG (Amarium Minerals) pump started after the market close on August 18th. It is quite obvious that volume was low (because StockTips.com’s previous pumps had never done well and had lasted only weeks) but then the stock broke out and hit a high of about $0.59 which is up over 100% from the median price on the first pump day of about $0.25. The last pump emails came on September 27th at 2:56 PM eastern.

Compensation disclosed: $25,000
Paying party: Laluna Inc

Here is the disclaimer from those emails (click to enlarge):

The PGLO (Pan Global) pump began after the market close on October 20th. Emails then came every trading day until November 6th, when an email was sent at 8:19 AM Eastern. After that email, no further emails were sent until November 14th at 1:53 PM Eastern. The final pump email was sent at 8:23 AM Eastern on November 19th. From a median price of about $0.35 on the first day to the high of the pump of about $0.96 on November 5th, the stock went up 170%.

Compensation disclosed: $1,100,000
Paying party: Laluna Inc

Below is the disclaimer sent with the emails (click to enlarge):

Tiger Oil and Gas (TGRO): The Current Stocktips.com pump & dump

The current stock promotion of StockTips.com is Tiger Oil and Energy, Inc (TGRO). Before describing the current promotion of TGRO I should mention its prior promotion back in January. It was promoted by Blue Lys Capital (WallstreetReport.net among other websites, paid $55,000) after the close on January 16th. Prior to the open the next day it was promoted by Andalusian Holding (FreeOTCPicks.com along with other websites, paid $55,000) and StockMister LLC (paid $15,000 by Cream Consulting). I received no further pump emails on TGRO after 2:20 PM Eastern on January 17th.

The current StockTips.com promotion of TGRO began on December 8th (a Sunday) and emails have come each trading day (or Sunday night). From a price of about $0.42 at 9:45am on the first trading day after the pump began TGRO hit a high of about $0.63 the next day for a potential gain of 50%.

Compensation disclosed: $2,500,000

Paying party: Laluna Services Inc

Below is the disclaimer from the emails promoting TGRO (click to enlarge):

The emails from StockTIps.com link to a video at http://www.stocktips.com/TGRO/ which then takes the viewer to http://www.stocktips.com/special-thank-tgro/ which links to the Invests.com page promoting TGRO.http://invests.com/opportunity-in-tigeroilandenergy-tgro

The disclaimer on that page says:

Invests.com expects to receive $1,250,000.00 for publication of this advertorial by StockTips.com.

PDF copy of Invests.com promotion page.

Why the SEC should have its sights set on StockTips.com

I have noticed several things about StockTips.com that make me believe that they are violating the law. These are all relatively small things that by themselves warrant no more than a slap on the wrist but they could indicate far bigger problems. If I worked for the SEC these would definitely make me think of investigating StockTips.com. First, the website discloses in all its emails that it is owned by Amerada Corp. In every email it lists its address as “4000 Aurora Avenue N. Ste. 119 Seattle, Washington 98103 US”. A quick search of corporations in Washington found only Amerada Petroleum Corp (a subsidiary of Hess Corporation, registered in Delaware). A search of Nevada and Delaware corporate registries found no companies with that name that currently exist (in Delaware an Amerada Corp. has been defunct since 1998). It is quite possible that the Amerada Corp that owns Stocktips.com exists in some other state and all this shows is a lack of proper disclosure or registration (using an address in Washington should mean that they have to file as a foreign corporation, in which case they would show up in the search I conducted).

The same question of the existence of Amerada Corp. can be asked of Laluna Inc — searches of the corporation registries of Washington, Nevada, and Delaware showed no potential matches. Furthermore, the name changed from Laluna Inc to Laluna Services Inc for the TGRO pump (all previous pumps listed “Laluna Inc” as the paying party. This makes it seem less likely that the company exists (although it is possible they made a typo but adding a “Services” to a company name is not a common typo). I should point out that while there are some foreign jurisdictions that do use “Inc.” or “Incorporated” that is much less prevalent than “Ltd.” or “Limited”.

Another suspicious fact about StockTips.com is that for every single stock promotion I have seen by them they have been paid by the same company, Laluna Inc (except for TGRO which was paid by Laluna Services Inc). Most promoters, when they do disclose who paid them, list a revolving door of common third-party promoter payers (such as Flip Ventures LLC), other promoters (such as MicroCap Consultants LLC) and entities that appear to be one-off entities created for one stock promotion.

I do have to admit that what I have described above is no more than what has seemed like ordinary stock promoter behavior over the last few years. But times have changed and the SEC’s Microcap Task Force has been kicking ass and taking names. Any prominent stock promoter that does anything even mildly suspicious is going to quickly find itself being investigated by the SEC. And any stock being promoted by such a promoter is at risk of a trading suspension.

[Edit 2013-12-16 3:20 PM]: In addition to what I described above, many of the large shareholders in TGRO have ties to recent pump and dumps such as NHUR and NVGC. See Ivan’s SeekingAlpha article and the Promotion Stock Secrets article on NGRC for details. In fact, TGRO CEO Kenneth B. Liebscher was criminally prosecuted in the past for stock fraud, although he was acquitted on all counts. The history of the CEO and the ties of large shareholders to other major pump and dump companies (including NHUR and NGRC) make it more likely that trading in TGRO be suspended by the SEC. See also the Promotion Stock Secrets blog post about TGRO.

Disclaimer: [Edit 2013-12-16: 3:20 PM — I am no longer net short TGRO but will soon be net short again] I am short TGRO and I intend to trade around my position (cover / reshort) in the following trading days and I will not update my disclaimer; I have no relationship with any parties mentioned above. 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 Suspends trading in pump and dump Makism 3D $MDDD

The stock promotion of Makism 3D Corp (MDDD) had only been going for nine days and still the SEC suspended trading in the stock today prior to the market open. Just as with Life Stem Genetics, SeekingAlpha published a negative article on MDDD by StockRealist the day prior to the suspension.

SEC trading suspension release
SEC trading suspension order

Just like with the suspensions of trading of Sovereign Lithium (SLCO) and Guar Global (GGBL) the SEC highlighted potentially manipulative trading in the stock in addition to the standard concerns about adequacy of information about the company:

The Commission temporarily suspended trading in the securities of Makism3D because of
concerns regarding the accuracy and adequacy of information in the marketplace and potentially
manipulative transactions in Makism3D’s common stock.

Disclaimer: I have no position in any stocks mentioned and no relationship with any parties mentioned above. 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 Suspends trading in pump & dump Guar Global $GGBL

The stock promotion of Guar Global (GGBL) began just last weekend. The SEC suspended trading in the stock today prior to the market open after only four days of promotion.

SEC trading suspension release
SEC trading suspension order

Just like with the suspension of trading of Sovereign Lithium (SLCO), the SEC highlighted potentially manipulative trading in the stock in addition to the standard concerns about adequacy of information about the company:

The Commission temporarily suspended trading in the securities of Guar Global because of
concerns regarding the accuracy and adequacy of information in the marketplace and potentially
manipulative transactions in Guar Global’s common stock.

More on John Babikian: Synopses of three new articles in Journal de Montreal

I will update this post as I complete translations or synopses of the articles. The original articles are in French.

29 November: Une mère monoparentale se souviendra longtemps de Babikian (A single mother will remember Babikian for a long time)

29 November: Une fraude, selon un expert (A fraud, according to an expert)

27 November: Le mystérieux multimillionnaire Babikian dans la mire de l’AMF (The mysterious multimillionaire Babikian in the sights of the Quebec tax authorities)

For my own part, I can state that the AMF (Quebec tax authority) is very aggressively pursuing leads on the whereabouts and assets of John Babikian. They are putting a lot of time and manpower into this.

Highlights of the oldest article:

Jose Lorrea, the current owner of a condo formerly belonging to John Babikian, was interviewed by Xavier Saint-Pierre and David Gallant for a half hour.

“They wanted to know what I knew about the sale of the condo,” he said. He bought the condo on April 4th, 2013 for C$447,000. John Babikian was never present for the sale of the condo and was represented by his parents, Gérard Babikian and Laudy Khairallah.

Babikian acquired the condo in 2009 in the name of a numbered company for the price of C$348,881. During the sale, Babikian declared that he had never been married or in a civil union. However, this is contradicted by a marriage filing with the Montreal court on July 31, 2010.

The Quebec tax authority recently obtained a judgement against John Babikian for C$1.78 million for taxes owed in 2011. According to the judgement on November 21, Babikian must pay C$1,782,518.55 and daily interest from November 22nd. This is in addition to prior judgments against Babikian for taxes owed for the years 2008 to 2010.

Highlights of the second article:

The case of Sunpeaks Ventures (SNPK), promoted by websites linked to John Babikian, is clearly a stock fraud, according to a former SEC lawyer, Gary Aguirre.

[The article describes how pump and dumps work — which is unnecessary for my readers]

Mr. Aguirre envisaged that there would be a year to file a class action against Sunpeaks Ventures and Awesomepennystocks, after having received many calls from investors who had been fleeced in the pump and dump. However, he was not able to find the person or persons who ran the scheme.

“These are moving targets — they hide themselves behind offshore entities. It is extremely troubling that neither the SEC nor the FBI have yet acted in this case, because only they can unmask the masterminds of this scheme.”

Highlights of the most recent article:

The sad history of a single mother from the Chicago area who lost money in an Awesomepennystocks pump and dump can in part explain how John Babikian acquired a huge fortune.

Amy, a 57 year old American, contacted us soon after our first article about John Babikian.

“I don’t know who gave them my address, but I regularly received promotional announcements about certain companies,” she said. In March 2012, she received emails about a company in the business of distributing specialized medicines. The company, Sunpeaks Ventures, was said to be at the point of commercializing their multivitamin product designed for people taking anti-coagulant drugs.

Amy confessed that she had wanted to buy about $35,00 worth of Sunpeaks stock because of her enthousiasm for the product Clotamin. “They said that they were at the point of signing an agreement with Walgreens,” she said.

She ended up investing more and eventually losing over $100,000 on Sunpeaks stock. “I live day to day — $100,000 — that was all my retirement savings. I don’t know how I will get out of this,” she said.

SEC Cracks down on pump and dumps

This is hardly news to readers of this blog, but a Washington Post article from last week got some nice quotes from SEC officials giving some details on the pump and dump crackdown:

With a new chairman at its helm, and new chiefs leading the enforcement division, the agency created a 26-person task force in July devoted to rooting out microcap trading abuses. Since then, the agency has opened five or six microcap investigations a month, well above the previous year’s pace, agency officials said. The initiative builds on the efforts of a loosely-knit SEC working group created three years ago.

“For years, we did a number of these cases, but we didn’t attack it with a systematic approach,” said Andrew Ceresney, co-director of the SEC’s enforcement division. “We now have people focused on the area full-time for the first time, and by marshalling their expertise, we think we can make a difference.”

And the SEC has stated that they have purposely become more agressive in suspending trading in pump and dumps:

The agency said that going forward it will focus on repeat offenders, who account for a substantial amount of the fraud. It also is aggressively moving to suspend trading when it has reason to suspect misconduct. The agency has issued 90 trading suspensions so far this year, up 35 percent from the same period a year earlier. Most of the suspensions involved microcaps.

Full article at Washington Post.

Guar Global $GGBL Promoted by Smallcap Fortunes / Eric Dickson

If you do not follow me on Twitter I highly suggest doing so — I give many updates and trading ideas there that are never posted on this blog; I tweeted about the GGBL promotion prior to the market open this morning.

On December 1st I received an email from SmallCapFortunes.com promoting Guar Global (GGBL).

Below is an excerpt of the disclaimer from the email:

Small Cap Fortunes has been compensated by Trinity Investment Research up to $10,000 for coverage of GGBL in this Small Cap Fortunes newsletter.

This morning at 8:05 am I received a further email from SmallCapFortunes linking to a promotion page for GGBL at http://www2.smallcapfortunes.com/guar/index.html

Disclosed budget: $1.250.000

Promoter: List Data Solutions and Eric Dickson / Breakaway Stocks

Paying party: Morgan Equity Inc.

Shares outstanding: 59,000,000
Previous closing price: $0.68
Market capitalization: $40 million

Excerpts from disclaimer:

LDS [List Data Solutions] has managed a total production budget of up to $1,250,000 for advertising efforts and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. Breakaway Stocks is paid $5,000 as an editorial fee from LDS and also expects to receive new subscriber revenue as a result of this advertising effort.

Disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This advertising issue of Breakaway Stocks does not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to be construed as a recommendation by Breakaway Stocks or an offer or solicitation to buy or sell any security. Guar Global, (GGBL), the company featured in this issue, appears as paid advertising by Morgan Equity Inc. to provide public awareness for GGBL. Breakaway Stocks and List Data Solution (LDS) have used outside research and writers using public information to create the advertisement coming from Breakaway Stocks about GGBL. Although the information contained in this advertisement is believed to be reliable, Breakaway Stocks and LDS makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize the content. All commodity, stock prices and theoretical projections were current as of the writing of this advertisement. Prices and projections may not be current as of the dissemination of this advertisement. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. Breakaway Stocks is not offering securities for sale. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. Many companies have information filed with state securities regulators and many will supply investors with additional information on request. LDS has managed a total production budget of up to $1,250,000 for advertising efforts and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. Breakaway Stocks is paid $5,000 as an editorial fee from LDS and also expects to receive new subscriber revenue as a result of this advertising effort. *More information can be received from GGBL’s investor relations firm. Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like GGBL, advice to investors and other investor resources are available at the Securities and Exchange Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and after reviewing the publicly available financial statements of and other information about the company and verifying that the investment is appropriate and suitable. Investing in securities is highly speculative and carries a great deal of risk especially as to new companies with limited operations and no history of earnings. The information contained herein contains forward-looking Information within the meaning of section 27a of the Securities Act of 1993, as amended, and section 21e of the Securities Exchange Act of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, GGBL notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the Company’s actual results of operations. Factors that could cause actual results to differ include the size and growth of the market, the Company’s ability to fund its capital requirements in the near term and in the long term; pricing pressures, technology issues etc.

PDF copy of promotion website.

Disclaimer: I have no position in GGBL; I have no relationship with any parties mentioned above. 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.

Makism 3D Corp $MDDD Stock promotion begins in earnest

On November 30th I received promotion emails from info@bedfordreport.com, info@paragonreport.com, and info@fivestarequities.com promoting Makism 3D Corp (MDDD). All three websites are owned / run by the same promoters. They do some email-only stock promotions but they also do some promotions that are larger in concert with hard mailers. They promoted ARTH back in July and ECAU back in March. This morning in their emails they gave links to the online landing page http://techpickreport.com/

Below is an excerpt of the disclaimer from the emails:

Providence has been compensated $50,000 by Blackrock Media Group Inc. (hereafter “BMG”), on behalf of its client, Edge Strategies LLC., for a one month advertising contract to build investor awareness for Makism 3D Corp. (OTCQB: MDDD) starting November 30, 2013. In addition, Providence expects to receive future compensation for the continuation of the advertising contract for a minimum of two additional months at $50,000 per month for a total of $150,000.

Disclosed budget: $2,750,000

Promoter: Blackrock Media Group Inc. and Andy Chambers / Chambers Advisors Inc

Paying party: Edge Strategies, LLC

Shares outstanding: 59,210,000
Previous closing price: $1.07
Market capitalization: $63 million

Excerpts from disclaimer:

Andy Chambers, Chambers Advisors Inc.(CAI) received $10,000 in cash compensation from Blackrock Media Group Inc. and its client Edge Strategies, LLC to endorse this advertisement in addition, Andy Chambers, Chambers Advisors Inc.(CAI) does expect to receive new subscriber revenue as a result of this advertising effort.

…

Blackrock Media Group Inc., (BMG) has received a total of $2,750,000 USD as of November 30th, 2013 from its client Edge Strategies, LLC., the third party advertiser for this advertising in an effort to build investor awareness for Makism 3D Corp. (OTCQB: MDDD). BMG shall retain any amounts over and above the cost of creating and distributing this advertisement

Disclaimer:

ENDORSER IMPORTANT NOTICE AND DISCLAIMER: Andy Chambers (Endorser) track record was compiled from calculations derived from documentation from the Compound Income Trader newsletter a Chambers Advisors Inc. (CAI) publication; Said publications and documentation were made available to CAI subscribers. No representation is made that actual purchases and sales were made at the prices stated. The Andy Chambers Advisors, The Market’s Line in the Sand Newsletter is a Chambers Advisors Inc. publication. Facts stated in this article were supplied to endorser from third-party sources. Andy Chambers, Chambers Advisors Inc.(CAI) received $10,000 in cash compensation from Blackrock Media Group Inc. and its client Edge Strategies, LLC to endorse this advertisement in addition, Andy Chambers, Chambers Advisors Inc.(CAI) does expect to receive new subscriber revenue as a result of this advertising effort. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our publication is not trustworthy unless verified by their own independent research. Only invest monies you can afford to lose. Andy Chambers Chambers Advisors Inc.(CAI) makes no representations as to such facts, reliability, accuracy or completeness. Endorser is not responsible for errors or omissions. Endorser does not claim any special expertise or knowledge regarding the Printing industry. Endorser is neither acting as an investment advisor nor providing individual investment advice. Andy Chambers Chambers Advisors Inc.(CAI) OWNS NO SHARES,OPTIONS,WARRANTS in Makism3D Corp.(MDDD). Also, Makism3D Corp.has neither approved nor paid for this specific advertisement. Readers should perform their own due diligence. The information presented is provided for information purposes only and the endorsement is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities. Endorser has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. Any securities referenced by Endorser may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments. Nothing in the endorsement constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. Information, opinions and estimates referenced in the endorsement reflect a judgment at its original date of publication and are subject to change without notice. The price and value of the securities mentioned in the endorsement can fall as well as rise, and may have a high level of volatility. High volatility securities may experience sudden and large falls in their value, leading to losses. High volatility investments may also be difficult to sell. Similarly, it may prove difficult for you to obtain reliable information about the value or risks to which such an investment is exposed. The endorsement may provide the addresses of, or contain hyperlinks to, websites. Except to the extent to which the report refers to website material of Endorser, the Endorser has not reviewed any recommended or linked site and takes no responsibility for the content contained therein. Such address or hyperlink is provided solely for your convenience and information and the content of the linked site does not in any way form part of the endorsement. Accessing such websites or following any link shall be at your own risk. Further, you are advised to read and carefully consider the additional explanations of risk factors in Markism 3D Corp. SEC filings that can be found online in the SEC‚s EDGAR database at www.SEC.gov . Neither Andy Chambers nor his publication is offering securities for sale. Finally, Penny Stocks are EXTREMELY RISKY. You should consult with your registered investment adviser before investing to determine suitability and risk tolerance. Andy Chambers Chambers Advisors Inc.(CAI) assumes no risk for investor losses or profits. The information contained herein contains forward-looking information within the meaning of section 27a of the Securities Act of 1993, as amended, and section 21e of the Securities Exchange Act of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect Makism3D Corp. actual results of operations. Factors that could cause actual results to differ include size and growth of the market, the Company”s ability to fund its capital requirements in the near term and in the long term; pricing pressures, technology issues etc. There is no guarantee that past results are indicative of future performance. IMPORTANT NOTICE! Option and stock investing involves risk and is not suitable for all investors. Only invest money you can afford to lose in stocks and options. Past performance does not guarantee future results. The trade entry and exit prices represent the price of the security at the time the trade recommendation was made. The Andy Chambers Chambers Advisors Inc.(CAI) trade record does not represent actual investment results. Trade examples are simulated and have certain limitations. Simulated results do not represent actual trading. Since the trades have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Third Party Advertiser IMPORTANT NOTICE AND DISCLAIMER: Blackrock Media Group Inc., (BMG) has received a total of $2,750,000 USD as of November 30th, 2013 from its client Edge Strategies, LLC., the third party advertiser for this advertising in an effort to build investor awareness for Makism 3D Corp. (OTCQB: MDDD). BMG shall retain any amounts over and above the cost of creating and distributing this advertisement which advertises The Andy Chambers Advisor’s The Market’s Line in the Sand Newsletter (a publication of Andy Chambers Chambers Advisors Inc.) coverage of Makism 3D Corp. Advertising services include; production, outsourced advertising copywriting services, mailing and other related distribution services and advertising media placement costs. Blackrock Media Group, Inc. is a company based in Bacolod City, Philippines and its client Edge Strategies, LLC, third party advertiser, is a company based in Charlestown, Nevis. Edge Strategies, LLC, the third party advertiser, has represented to BMG in writing that it does not own any shares of Makism 3D Corp. except for restricted stock. Edge Strategies, LLC. has represented to BMG in writing that it will not sell, pledge or hypothecate or otherwise agree to dispose of for 90 days following the initial dissemination of this advertisement. Edge Strategies, LLC. has also represented to BMG in writing that neither it nor its affiliates will buy or sell any shares of Makism 3D Corp. during the period that this advertisement is being disseminated by BMG or third party media vendors. This is sponsored advertising and does not purport to provide an analysis of the featured company’s financial position, operations or prospects and is not to be construed as a recommendation or solicitation by BMG to buy or sell any security. BMG is a firm which refers and facilitates the services of third-party vendors and advertising related service providers to persons wishing to sponsor advertising that may feature or include publicly-traded companies. BMG is not a financial analyst, investment advisor or broker/dealer. The services provided by BMG in connection with this advertisement are limited to the introduction of third party advertiser to copywriter services and paid endorser, the renting of distribution list(s), and managing the production and distribution of this advertisement. BMG is not responsible for the endorsement of this advertisement, which is the sole responsibility of The Andy Chambers Advisor’s The Market’s Line in the Sand Newsletter. Andy Chamber`s Chambers Advisors Inc. expects to receive an unknown amount of subscription revenue as a result of this advertising effort. Neither BMG nor its members have an ownership interest in The Andy Chambers Advisor’s The Market’s Line in the Sand Newsletter or any of its affiliates, and neither The Andy Chambers Advisor’s The Market’s Line in the Sand Newsletter nor its affiliates have an ownership interest in BMG. BMG makes no warranties as to the accuracy of the content of this advertisement and expressly disclaims and assumes no liability for how readers may choose to utilize the content of this advertisement. Readers are strongly urged to independently verify all statements made in this advertisement and to perform their own due diligence on this or any other advertised company, including but not limited to consulting with a qualified investment professional and reviewing the publicly available financial statements of, and other information about Makism 3D Corp. You should also determine that an investment in Makism 3D Corp. is appropriate and suitable for you. Makism 3D Corp. is traded on the OTCQB Bulletin Board (trading symbol: MDDD). Its stock is registered under the Securities Act of 1933, as amended, and its periodic and other reports filed under the Securities Exchange Act of 1934, as amended, are publicly available from the Securities and Exchange Commission at its website at http://www.sec.gov. This website also contains general investor information about publicly-traded companies, advice to investors and other investor resources. Other investor resources are available from the Financial Industry Regulatory Authority through its website at www.finra.org. Many states have established rules requiring approval by the state securities administrator to permit sales of a security to its residents. Check with the North American Securities Administrators Association through its website at www nasaa.org or call your state securities administrator to determine whether a particular security may be purchased by you as a resident of your state. Many companies have filed information with state securities regulators and many companies will supply prospective investors with additional information upon request. Investing in securities is highly speculative and carries a great deal of risk, especially as to newer companies with comparatively short operating histories and limited earnings. This advertisement contains forward-looking statements regarding Makism 3D Corp. its business and prospects. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions created by these laws. This advertisement may provide the addresses of or contain hyperlinks to outside or third-party websites, BMG has not reviewed any such websites and takes no responsibility for the contents thereof or any possible effects resulting from accessing any such websites. The contents of any such websites do not in any way constitute a part of this advertisement. Accessing such websites or following any link shall be at your own risk.

PDF copy of promotion website.

[Edit 2013-12-11]: There are hard mailers going out promoting MDDD. See the full mailer at Promotion Stock Secrets. Zen Trader posted good photos of the disclaimers. Read the Promotion Stock Secrets report on MDDD, which is now available to non-subscribers.

See Ivan’s article on SeekingAlpha about the MDDD pump and dump.

Disclaimer: [Edit 2013-12-12: I have no position in MDDD]; my position will likely change by the time you read this and I will not update this disclaimer unless I update the post; I have no relationship with any parties mentioned above. 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 Suspends trading in Nevada Gold Corp $NVGC

Another day, another trading suspension of a big stock promotion. This time the ‘victim’ is Nevada Gold Corporation (NVGC). NVGC has been promoted by illegal spam emails from “StockCastle”. This trading suspension comes just two days after the previous trading suspension of a major active stock promotion, Life Stem Genetics.

Here is a chart of NVGC:

George Sharp had also found a hard mailer promoting NVGC.

NVGC will reopen for trading on the grey sheets on December 12th.

From the trading suspension release:

The Commission temporarily suspended trading in the securities of NVGC because of questions
regarding the accuracy and adequacy of assertions by NVGC, and by others, to investors in press
releases and promotional material concerning, among other things, the company’s assets,
operations, and financial condition

SEC trading suspension release (pdf)
SEC trading suspension order (pdf)

Disclaimer: I am short 15,000 shares of NVGC at Interactive Brokers and I am long 10,000 shares at Speedtrader. I intend to exit those positions soon after the stock reopens for trading. I have no position in any other stock mentioned. I have no relationship with any parties mentioned above, other than that I am friendly with the author of the negative SeekingAlpha article on LIFS. 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.