High likelihood of an SEC trading suspension of Bayside Corp $BYSD

Today Bayside Corporation (BYSD) was promoted by numerous 3rd-rate stock promoters. Coinciding with the promotion, the company put out an absurd press release yesterday touting a huge purchase order. This was only the company’s second press release this year (the first one was a week ago). Here is an excerpt from the press release:

DALLAS, July 23, 2013 /PRNewswire/ — Bayside Corp. (BYSD) today announced that the company has been awarded a purchase order to supply 3,600,000 Metric tons of heavy fuel oil exports annually.
Additionally, the order represents approximately $160,500,000 in gross revenues every month for the next thirty-six months. Heavy fuel oil exports is the first step in the company’s long-term expansion plans to develop its oil and natural gas business in the international marketplace.
Gordon Johnson, Chairman of Bayside Corp., was quoted saying, “we are thrilled to expand our revenue base with international heavy fuel oil export orders.” Furthermore, the contractual finalization of the purchase orders and the heavy fuel oil exports is expected to be completed within the next 30 days.

Thanks to Pumpsanddumps.com for pointing this out (see their article on BYSD). Extraordinary claims demand extraordinary proof and I cannot imagine any crappy penny stock company (particularly one with a $4 million market cap as of yesterday) ever receiving such a large order. With the stock up 93% to $0.009 as I write this, I anticipate the stock dropping by over 60% in the next day or two even if the stock does not get suspended.

I previously thought that SKTO would likely get suspended by the SEC but that never happened.

[Edit 2013-7-25]: See the Promotion Stock Secrets article on BYSD.

Disclaimer: I have no position in any stock mentioned above 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.

North American Oil & Gas Corp $NAMG gets a Tobin Smith pump

I first received emails yesterday promoting North American Oil & Gas (NAMG) from Global Marketing Media LLC websites.

PennyStockCircle is owned and operated by Global Marketing Media LLC. Global Marketing Media LLC has been compensated thirty five thousand dollars for a two day marketing and promotional effort on NAMG by Lake Group Media, Inc.

The Global Marketing Media LLC websites are:

Pennystockpros.net
TheStockScout.com
PennyStockClub.net
PennyStockCircle.com
123StockAlerts.com

Quickly searching the web and my past emails I saw that Lake Group Media Inc., which had paid for the promotion, had been the paying party in many other promotions, including a couple bigger mailer pumps. I tweeted about that after Ivan tweeted that he thought that NAMG might get a big pump because of the high share price. This morning I then saw this tweet linking to this website promoting NAMG (http://namginfo.com/index.html) with Tobin Smith as the promoter. So far the trading volume on NAMG is fairly low. I am definitely not looking to buy this promotion but I am not in a hurry to short either.

Disclosed budget: $340,006.08

[Edit 2013-8-4: The budget is now disclosed as $939,443.70.]
[Edit 2013-8-23: The budget is now disclosed as $1,338,546.80.]

Promoter: Genius Marketing Ltd. & NBT Equities Research / Tobin Smith

Paying party: Genius Marketing Ltd.

Shares outstanding:  60,125,000
Previous closing price: $0.90
Market capitalization: $54 million

Excerpt from disclaimer:

North American Oil and Gas Corporation (hereafter “NAMG”), the company featured in this issue, appears as paid advertising. Genius Marketing Ltd. has budgeted $340,006.08 [sic] for the dissemination of this info to enhance public awareness for NAMG.

TS has received twenty thousand dollars for this and related marketing materials. TS also expects to receive new subscriber revenue, the amount which is unknown at this time, as a result of this advertising effort.

namg_screenshot

PDF copy of promotion page.

Disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This paid email advertisement by Tobin Smith (hereafter “TS”) 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 TS, or an offer to sell or solicitation to buy or sell any security. North American Oil and Gas Corporation (hereafter “NAMG”), the company featured in this issue, appears as paid advertising. Genius Marketing Ltd. has budgeted $340,006.08 for the dissemination of this info to enhance public awareness for NAMG. Although the information contained in this advertisement is believed to be reliable, TS 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. TS has received twenty thousand dollars for this and related marketing materials. TS also expects to receive new subscriber revenue, the amount which is unknown at this time, as a result of this advertising effort. TS 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. TS 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 was conducted by an outside researcher for this advertisement. More information can be received from NAMG’s website at www.namoag.com. Further, specific financial information, filings and disclosures as well as general investor information about publicly listed companies and other investor resources can be found at the Securities and Exchange Commission website at www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Many states have established rules requiring the approval of a security by a state security administrator. Check with www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. This advertisement is not intended for readers in any jurisdiction where not permissible under local regulations and investors in those jurisdictions should disregard it. Investing in securities is highly speculative and carries a great deal of risk, which may result in investors losing all of their invested capital. Past performance does not guarantee future results. The information contained herein contains “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected continual growth of the featured company. “Forward-looking” statements are based upon expectations, estimates and projections at the time the statements are made and involve risks and uncertainties that could cause actual events to differ materially from those anticipated. “Forward-looking” statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could, should, or might occur. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, goals or future events or performance may be “forward-looking” statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the publisher notes that statements contained herein that look forward in time, which include 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, but are not limited to, the size and growth of the market for the company’s products and services, regulatory approvals, the company’s ability to fund its capital requirements in the near term and the long term, pricing pressures and other risks detailed in the company’s reports filed with the Securities and Exchange Commission. All other trademarks used in this publication are the property of their respective trademark holders. TS is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by TS to any rights in any third-party trademarks.

[Edit 2013-8-23]: I continue to get emails promoting NAMG from various promoters. I was made aware of another online website promoting NAMG, Californiaoilboominfo.com. It shows the same Tobin Smith pitch as NAMGInfo.com. I did notice that the total budget for the promotion has been increased drastically, to $1,338,546.80.

New disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This paid email advertisement by Tobin Smith (hereafter “TS”) 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 TS, or an offer to sell or solicitation to buy or sell any security. North American Oil and Gas Corporation (hereafter “NAMG”), the company featured in this issue, appears as paid advertising. Genius Marketing Ltd. has budgeted $1,338,546.80 for the dissemination of this info to enhance public awareness for NAMG. Although the information contained in this advertisement is believed to be reliable, TS 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. TS has received twenty thousand dollars for this and related marketing materials. TS also expects to receive new subscriber revenue, the amount which is unknown at this time, as a result of this advertising effort. TS 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. TS 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 was conducted by an outside researcher for this advertisement. More information can be received from NAMG’s website at www.namoag.com. Further, specific financial information, filings and disclosures as well as general investor information about publicly listed companies and other investor resources can be found at the Securities and Exchange Commission website at www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Many states have established rules requiring the approval of a security by a state security administrator. Check with www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. This advertisement is not intended for readers in any jurisdiction where not permissible under local regulations and investors in those jurisdictions should disregard it. Investing in securities is highly speculative and carries a great deal of risk, which may result in investors losing all of their invested capital. Past performance does not guarantee future results. The information contained herein contains “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected continual growth of the featured company. “Forward-looking” statements are based upon expectations, estimates and projections at the time the statements are made and involve risks and uncertainties that could cause actual events to differ materially from those anticipated. “Forward-looking” statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could, should, or might occur. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, goals or future events or performance may be “forward-looking” statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the publisher notes that statements contained herein that look forward in time, which include 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, but are not limited to, the size and growth of the market for the company’s products and services, regulatory approvals, the company’s ability to fund its capital requirements in the near term and the long term, pricing pressures and other risks detailed in the company’s reports filed with the Securities and Exchange Commission. All other trademarks used in this publication are the property of their respective trademark holders. TS is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by TS to any rights in any third-party trademarks.

Disclaimer: [Edit 2013-8-23 I am long 13,450 shares NAMG in one account and short 16,700 shares NAMG in another account. I may change this position at any time. I will not update this disclaimer when I change my position except if I edit this post again.] 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.

Sanwire Corporation $SNWR pumps itself

This morning I received an email from Investors Alley (email@investorsalley.messages4.com) promoting Sanwire Corporation (SNWR) and linking to http://snwrbreakingnews.com/snwrreport/ This is an interesting promotion because the company itself is not only paying for the promotion but managing the promotion.

snwr

See the PDF copy of the pump page.

[Edit 2013-7-13]: The British Columbia Securities Commission has issued two separate cease trade orders (first back in May and then on July 12) on Sanwire (SNWR). The practical effect for traders outside of British Columbia is nil but I believe multiple such orders may indicate a greater chance of more serious regulatory trouble.

See the Promotion Stock Secrets article on Sanwire (SNWR).

 

Disclosed budget: $314,259

Promoter: Sanwire and Future Money Trends

Paying party: Sanwire

Shares outstanding:  41,451,937
Previous closing price: $0.52
Market capitalization: $21 million

Excerpt from disclaimer:

Sanwire Corporation has managed a total production budget of $314,259 for this advertising effort. Future Money Trends is being paid $50,000 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort.

Full disclaimer:

Important Notice and Disclaimer This paid advertising issue of Future Money Trends does not purport to provide an analysis of any company’s financial position, operations or prospects and is not to be construed as a recommendation by Future Money Trends or as an offer or solicitation to buy or sell any security. Sanwire Corporation, the company featured in this issue, appears as paid advertising paid for by Sanwire Corporation to increase public awareness of the company and its prospects. All information appearing in this advertisement is taken from publicly available sources. Although Future Money Trends and its editor and publisher believe this information to be accurate and reliable, neither Future Money Trends nor its editor or publisher has independently verified any information contained in this advertisement. Future Money Trends or its editor or publisher makes any representation or warranty whatsoever with respect to the accuracy or completeness of any information contained herein. Future Money Trends and its editor and publisher expressly disclaim any liability resulting from how readers may choose to utilize the contents of this paid advertisement. Readers should perform their own due diligence and are strongly urged to independently verify all statements made in this or any other paid advertisement. Any investment should be made only after consulting with a qualified investment professional and after reviewing the publicly available financial statements of, and other information about, the company and verifying that the investment is appropriate and suitable for you. You can obtain more information about Sanwire Corporation from its website at www.sanwire.net. Sanwire Corporation is a reporting company under the Securities Exchange Act of 1934, as amended, and trades on the OTC Markets Group under the symbol SNWR. Sanwire Corporation’s periodic and other reports filed under the Securities Exchange Act of 1934, as amended, are publicly available from the Securities and Exchange Commission at their website at http://www.sec.gov/edgar/searchedgar/webusers.htm. General investor information about publicly-traded companies like Sanwire Corporation, advice to investors, and other investor resources are available from the Securities and Exchange Commission’s website at www.sec.gov or from the Financial Industry Regulatory Authority website at www.finra.com. Many states have established rules requiring the approval of a security by the state securities administrator. Check with 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 filed information with state securities regulators and many companies will supply prospective investors with additional information upon request. Sanwire Corporation has managed a total production budget of $314,259 for this advertising effort. Future Money Trends is being paid $50,000 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort. Future Money Trends does not own any securities in Sanwire Corporation and will not buy, sell or offer to buy or sell any securities in Sanwire Corporation 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. This paid advertisement contains forward-looking statements regarding Sanwire Corporation, its business and plans. 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. Where Sanwire Corporation expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, the size and growth of the market for Sanwire Corporation’s products and services, its ability to develop and distribute its products, its ability to enter attract customers, the ability of the company to fund its capital requirements, competition, regulatory developments, the effects of short-selling and other market pressures, and other factors.

 

snwr_chart

 

Disclaimer: I have no position in any stock mentioned above 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 Freezes accounts used in illegal sales of unregistered shares of Biozoom $BIZM

Earlier today the SEC announced that it froze accounts of eight different Argentinians who had illegally sold unregistered shares of Biozoom (BIZM). Two others who had not yet sold shares also had their accounts frozen. A week ago the SEC suspended trading in Biozoom. See my original post on the Biozoom promotion as well as the Promotion Stock Secrets post on the individuals behind the promotion.

SEC press release
SEC complaint

The sheer number of shares sold and the profits involved are impressive. Here is a good description of what transpired from the SEC press release:

The SEC’s complaint alleges that from March to June 2013, the ten defendants received more than 20 million shares of Entertainment Art, which was one-third of the company’s total outstanding shares. In a one-month period beginning in mid-May, eight of them sold more than 14 million shares. The sales yielded almost $34 million, of which almost $17 million was wired to overseas bank accounts. Their U.S. brokerage accounts, which include approximately $16 million in cash, are subject to the asset freeze.

The ten defendants in the litigation are: Magdalena Tavella, Andres Horacio Ficicchia, Gonzalo Garcia Blaya, Lucia Mariana Hernando, Cecilia De Lorenzo, Adriana Rosa Bagattin, Daniela Patricia Goldman and Mariano Pablo Ferrari (Mariano Graciarena and Fernando Loureyro are also named but had not yet sold shares). The defendants claimed to have purchased shares in Biozoom (then known as Entertainment Art Inc.) from the company’s original seed shareholders between November 2012 and March 2013, but those shareholders had already sold all their shares back in 2009.

Despite the SEC’s quick action, over $17m in illicit profits were already wired overseas and are now beyond the reach of American authorities. Most likely none of the individuals whose names appeared on the accounts were behind the fraud. It is believed by many that Francisco Abellan has controlled scheme from the start.

The US brokerages used by the defendants are well-known to everyone who is familiar with the penny stock world: Legend Securities and Scottsdale Capital Advisors.

For further details, I suggest reading Promotion Stock Secret’s post on this litigation (same post as here).

Disclaimer: I am net long 1700 shares of BIZM (long 11,700 shares in one account and short 10,000 shares in another account); I have no positions in any other stock 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.

Penny Stock Pillager and the neverending Xumanii $XUII pump and dump

Note: I am short XUII (see disclaimer at bottom of post for details).

This morning I received an email from InvestorsHub promoting Xumanii linking to the following page: http://pennystockpillager.com/xuii/index.html. Penny Stock Pillager is published by Capital Financial Media, also known for running SmallCapFortunes.com. They have produced mailers for multiple AwesomePennyStocks.com pump and dumps and now Xumanii as well. This post is a bit tardy as Tim Lento posted that he received a XUII hard mailer from CFM on May 23rd.. Perhaps they had another batch to send out and that is why they didn’t let the pump die despite it breaking below the price at the start of the pump on June 11th.

Xumanii was first promoted by Victory Mark Corp on May 1st and then the AwesomePennyStocks websites joined on May 13th. On May 14th George Sharp sued APS, Victory Mark Corp, Xumanii, and other companies APS and VMC have recently promoted, causing XUII to fall to $0.23 before rebounding.  On May 28th after the market close I published a negative article on Xumanii on SeekingAlpha (and in that article I describe Sharp’s lawsuit). Sharp’s lawsuit and my negative article on SeekingAlpha (which has received over 6300 page views) likely hurt the performance of XUII.

XUII_mailer

See my PDF copy of the pump page.

xuii

Disclosed budget: $1,600,000 (see bottom of post for the compensation of VMC and APS)

Promoter: Capital Financial Management aka Penny Stock Pillager

Paying party: Oligarch Management Ltd.

Shares outstanding:  341,300,300
Previous closing price: $0.29
Market capitalization: $99 million

Excerpt from disclaimer (all incorrect spacing is in the original):

Xumanii (XUII), the “Company” featured in this issue, appears as paid advertising, paid byOligarchManagement, LTD. to provide public awareness forXUII

CFMhas received andmanaged a total production budget of $1,600,000 for this print effort andwill retain any amounts over and above the cost of production, copywriting services,mailing and other distribution expenses, as a fee for its services.

Disclaimer:

IMPORTANTNOTICEANDDISCLAIMER: This featured company sponsored advertising issue ofPennyStockPillager 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 byPennyStockPillager or an offer or solicitation to buy or sell any security.Xumanii (XUII), the “Company” featured in this issue, appears as paid advertising, paid byOligarchManagement, LTD. to provide public awareness forXUII.PennyStockPillager andCapital FinancialMedia (CFM) have used outside research andwriters using public information to create the advertisement coming fromPennyStockPillager aboutXUII. Investors/shareholders of theCompany may orwill sell shares at or about the timePennyStockPillager is distributed.Although the information contained in this advertisement is believed to be reliable,PennyStockPillager and CFMmakes nowarranties as to the accuracy of any of the content herein and accepts no liability for howreadersmay choose to utilize the content.Readers should performtheir own due-diligence, including consultingwith a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statementsmade in this advertisement and performextensive due diligence on this or any other advertised company.PennyStockPillager is not offering securities for sale.An offer to buy or sell can bemade only with accompanying disclosure documents and only in the states and provinces forwhich they are approved.Many states have established rules requiring the approval of a security by a state security administrator.Checkwith http://www.nasaa.org or call your state security administrator to determinewhether a particular security is licensed for sale in your state.Many companies have information filedwith state securities regulators andmanywill supply investorswith additional information on request.CFMhas received andmanaged a total production budget of $1,600,000 for this print effort andwill retain any amounts over and above the cost of production, copywriting services,mailing and other distribution expenses, as a fee for its services. *More information can be received from XUII’s investor relations representative. Further, specific financial information, filings and disclosures aswell as general investor information about publicly traded companies like XUII, advice to investors and other investor resources are available at theSecurities and ExchangeCommissionwebsitewww.sec.gov and www.nasd.com.Any investment should bemade only after consultingwith 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 companieswith limited operations and no history of earnings. The information contained herein contains forward-looking informationwithin themeaning of section 27a of theSecurities Act of 1993, as amended, and section 21e of theSecurities ExchangeAct of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of thePrivateSecurities LitigationReformAct,XUII notes that statements contained herein that look forward in time,which include everything other than historical information, involve risks and uncertainties thatmay affect theCompany’s actual results of operations. Factors that could cause actual results to differ include the size and growth of themarket, theCompany’s ability to fund its capital requirements in the near termand in the long term; pricing pressures, technology issues etc.

 

Here is an excerpt from the disclaimer of Victory Mark Corp:

 Selectpennystocks.com is owned and operated by Victory Mark Corp LTD, 4 Lords Bank, Ladyville, Belize City, Belize. Questions regarding this website may be sent to info@Selectpennystocks.com. The company expects to receive $500,000 USD from a third party for publication of this information.

And  below is the disclaimer from Awesomepennystocks.com:

apsdisclaimer_4

 

Disclaimer: I am short 13,875 shares of XUII at Interactive Brokers. I 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.

Naked Brand Group $NAKD pump and dump

This morning I received an email from Manny Backus (manny@wealthpire.com) promoting Naked Brand Group (NAKD) and linking to http://nextapparelrocket.com/ Earlier today the stock was easily shortable at Interactive Brokers. I would love to short this if only the volume were higher.

NAKD

See my PDF copy of the pump page.

 

Disclosed budget: $50,000

Promoter: Wall Street Investigator

Paying party: FullCorp Trading Limited

Shares outstanding:  31,904,000
Previous closing price: $1.12
Market capitalization: $35 million

Excerpt from disclaimer:

Wall Street Investigator received a ten thousand dollar editorial fee from FullCorp Trading Limited to cover editorial costs associated with the development of this email and online report. Wall Street Investigator stands to make a profit from the editorial services charted. FullCorp Trading Limited has paid or expects to pay upwards of fifty-thousand dollars as a total production budget for this online advertising effort.

Below is the disclaimer (annoyingly, an image and not actual text):nakd_disclaimer

 

Disclaimer: I have no position in any stock mentioned above 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.

BlueFire Equipment $BLFR search ad pump and dump

Bluefire Equipment (BLFR) is currently being promoted via ads on search engines. Clicking the ad takes you to the company’s investor relations page. The stock is too illiquid for me to be interested in trading it either long or short.

 

bfre_ad

 

Shares outstanding: 33,947,368

Previous close: $0.61

Market cap: $20 million

PDF copy of company investor relations page.

[Edit 2013-7-12]: BLFR is also being promoted by the website at http://www.financialdigest.info/bfire.html. Thanks to Nodummy from Promotion Stock Secrets for pointing that out to me.

 

blfra

PDF copy of pump page.

Excerpt from disclaimer:

On June 25, 2013 FinancialDigest.info entered into a 90-day advertising agreement related to the dissemination of information about BlueFire Equipment Corp by a non-affiliated third party for compensation of up to fifty thousand dollars.

DIsclaimer:

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Disclaimer:  [Edit 2013-7-12: still no position] I have no position in any stock 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 Biozoom $BIZM due to alleged Rule 144 violation

This year has already seen more suspensions by the SEC of actively traded pump and dumps than any year since I started trading them back in 2007. Today’s suspension of Biozoom takes it to the next level though: the stock had only been actively promoted for a month and it was averaging huge dollar volume (for an OTC stock) of over $10 million per day. This is much higher volume than any other promoted stock was doing at the time it was suspended. When the SEC has in past years suspended stocks that were the subject of stock promotions, it was usually long after the initial stock promotion. The reason for this suspension was also quite clear and was different from the normal reasons given by the SEC.

Before looking at the details of the suspension of Biozoom (BIZM), I recap other notable trading suspensions this year (links are to my blog posts on the suspensions):

1 March 2013 – Southern USA Resources (SUSA): This was a mailer promotion that had not collapsed at the time it was suspended.

The Commission temporarily suspended trading in the securities of Southern USA Resources because of questions that have been raised about the accuracy of assertions by Southern USA Resources, and by others, in press releases and other public statements to investors, and in promotional mailers, concerning, among other things: (i) the company’s operations; and (ii) thecompany’s outstanding shares.

susa

8 March 2013 – Endeavor Power Corp. (EDVP): This was an email promotion by various poor promoters the day before the suspension; it had previously been promoted in January by others.

It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Endeavor Power Corp. (“Endeavor Power”), quoted under the ticker symbol EDVP, because of questions regarding the accuracy of assertions in Endeavor Power’s public filings and press releases relating to, among other things, patents.

edvp

14 March 2013 – Face Up Entertainment (FUEG): This suspension was likely related to a Department of Justice criminal investigation into death threats made by some people involved in the promotion against one of the promoters.

The Commission temporarily suspended trading in the securities of Face Up because of questions concerning the adequacy and accuracy of publicly available information about Face Up, including, among other things, its financial condition, the control of the company, itsbusiness operations, and trading in its securities.

fueg

10 June 2013 – Polar Petroleum (POLR): This hard mailer and email pump lasted  for a month and a half before being suspended and it averaged over $1 million in daily dollar volume over that period. The suspension was almost certainly related to the company’s press releases that said more about Exxon’s operations than about Polar Petroleum’s.

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

polr

 

 

Besides the increased pace of SEC trading suspensions of active stock promotions this year, FINRA also joined the party, halting trading in Eco-Trade Corp (BOPT) for 14 trading days back in April, just a week after the beginning of a disastrous promotion by StockMarketAuthority / StockDectective that saw the stock drop in days from $0.24 to $.05. FINRA has for awhile had the ability to halt trading in OTCBB stocks but to my knowledge this is the first time they used that power. FINRA gave no notice whatsoever nor any explanation

bopt

The Biozoom Suspension

SEC press release
Suspension Order

Unlike the previous suspensions this year, the SEC was quite specific in why Biozoom’s stock was suspended:

The Commission is concerned that certain Biozoom affiliates and shareholders may have unjustifiably relied upon Rule 144 of the Securities Act of 1933 (“Securities Act”) and they, Biozoom, and others may be engaged in an unlawful distribution of securities through the OTCBB.

The SEC has a concise but vague description of Rule 144:

Rule 144 provides an exemption and permits the public resale of restricted or control securities if a number of conditions are met, including how long the securities are held, the way in which they are sold, and the amount that can be sold at any one time. But even if you’ve met the conditions of the rule, you can’t sell your restricted securities to the public until you’ve gotten a transfer agent to remove the legend.

The law firm Morrison Foerster at Mofo.com has much better description of Rule 144 and what it means (pdf). I am not a securities lawyer and am certainly not an expert on Rule 144, but the likely cause is that the insiders / control persons selling the shares had to wait 12 months after obtaining the shares before selling them (because Biozoom was listed as a shell company as recently as February 2013). Thanks to nodummy of Promotion Stock Secrets and Janice Shell for pointing this out. If Biozoom had not ever been a shell company then insiders would only have to wait 6 months before selling restricted shares under Rule 144.

I expect to see some litigation releases relating to the allegedly illegal share sales sometime in the coming months. See my previous report on Biozoom (and make sure to check out all the other articles about the company I link to). One interesting thing to note is that while I and others (like Ashraf Eassa writing at SeekingAlpha) have brought up the likelihood that the promotional campaign is being paid for by a shareholder (despite the promoters disclosing no compensation), which would make the promotion illegal, this was not mentioned in the SEC suspension order. I believe that the Rule 144 violation is simply easier and quicker to prove and that in time the SEC will sue the promoters for what I believe to be a false disclosure of no compensation.

bizm

A Note on Trading BIZM

I made more than a few thousand dollars buying BIZM and shorting it at various times over the last month. Especially after the POLR suspension I became very cautious especially considering the lack of disclosure of compensation in the BIZM promotional materials. I warned people repeatedly in TimAlerts chat that it was risky to hold BIZM overnight. But I tried to get cute and get out at the best possible price and ended up not fully filling my sell order. Trying to save a few cents per share will likely end up costing me over $3 per share: I bet BIZM opens under $0.50.

 

MichaelGoode

sell I agree with them but it isn’t news. And I still put the risk of a suspension of BIZM at low. I still refuse to hold long o/n because of that risk though

Posted Jun 24, 2:47 PM

 

MichaelGoode

I plan to sell into the next BIZM spike … no matter what I won’t hold o/n although I think it closes strong and gaps up

Posted Jun 24, 3:17 PM

MichaelGoode

sold BIZXM @ 3.41

Posted Jun 24, 3:59 PM

 

MichaelGoode

actually not all my BIZM filled — I waited too long. Still net long 1700 o/n.

Posted Jun 24, 4:01 PM

[Update 2013-6-27]: See Janice Shell’s article on what the recent rash of SEC trading suspensions means for pumps.

Disclaimer: I am net long 1700 shares of BIZM (long 11,700 shares in one account and short 10,000 shares in another account); I am short 3200 shares of POLR; I have no positions in any other stock 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.

Tobin Smith fired by Fox after Chuck Jaffe publicizes Smith’s stock promotion

This should not come as a surprise to readers of this blog. Rather, I just wanted to put links to all relevant articles in a post for future reference.

Chuck Jaffe’s article on MarketWatch that started the brouhaha

Tobin Smith’s response

Media Matters article (Great read)

Past performance of Tobin Smith pumps (at MicrocapClub.com, run by Ian Cassel, who has his own problems)

I have previously written about Tobin Smith’s promotion of Petrosonic Energy (PSON), as well as his promotion of Brazil Minerals (BMIX), and Western Graphite (WSGP).

Disclaimer:  I have noposition in any stock 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.

Arch Therapeutics $ARTH pump and dump

I first heard about Arch Therapeutics from Tom McCarthy of Prepromotion Stocks and then purchased it after a few big block trades. Tim Sykes ended up buying it the next day and following the increased volume the stock tanked fast and far, likely because the promoters wanted to scare out speculators as the promotion had not apparently started yet. I made some money buying early and selling after Sykes bought but I bought back some shares after it dipped a little (to $0.77 from about $0.82) and then as it dumped I tripled my position by buying at $0.61 and $0.495 before selling most of my shares in the high $0.60s and low $0.70s. Below are my trades on ARTH:

 

$140profitARTHLong Stock
batch import Speedtrader through 6/20

Posted by MichaelGoode /
http://profit.ly/1Mnbgb

 

($15)lossARTHLong Stock
batch import Speedtrader through 6/20

Posted by MichaelGoode /
http://profit.ly/1Mnbga

 

$1,230profitARTHLong Stock
batch import Speedtrader through 6/20

Posted by MichaelGoode /
http://profit.ly/1MnbgY

 

$259profitARTHLong Stock
batch import Speedtrader through 6/20

Posted by MichaelGoode /
http://profit.ly/1MnbgZ

 

($61)lossARTHLong Stock
batch import Speedtrader through 6/20

Posted by MichaelGoode /
http://profit.ly/1MnbgX

 

$189profitARTHLong Stock
batch import Speedtrader through 6/20

Posted by MichaelGoode /
http://profit.ly/1MnbgW

The pump page was posted briefly at ARTHReport.com at the end of last week but it has since been taken down. Even at the time it was posted there was no disclaimer. Here is a PDF copy of the website that was up. Below is a screenshot:

arth

 

[Edit 2013-7-7]: The ARTH pump page has been re-uploaded. See it at ArthReport.com. It is now complete and includes a disclaimer. See the PDF copy of the pump page

ParagonReport.com / BedfordReport.com / FiveStarEquities.com have a new pump at the open on Monday July 8th and it will very likely be ARTH.

 

Disclosed budget: $790,000

Promoter: Ian Cooper & Full Service Media LLC

Paying party: Advantage Media Corp

Shares outstanding:  66,330,000
Previous closing price: $0.905 (day prior to this blog post; when post was updated on 7/7/2013 the previous close was at $0.91)
Market capitalization: $60 million

Excerpt from disclaimer:

Ian Cooper has been compensated $10,000 by Advantage Media Group for endorsing this product, and Market Authority has been paid a $25,000 by Advantage Media Group for sending out this advertisement.

Advantage Media Corp., the third party advertiser, has paid $390,000 USD and is expected to pay an additional $400,000 to Full Service Media, LLC (FSM) as of June 20, 2013 for this advertising effort in an effort to build investor awareness. FSM shall retain any amounts over and above the cost of creating and distributing this email advertisement which advertises Ian Cooper’s Speed Retirement System Newsletter coverage of Arch Therapeutics, Inc.,

,,,

Advantage Media Corp., the third party advertiser, is a company based in Belize City, Belize. Advantage Media Corp. represents that it does not own any shares of Arch Therapeutics, Inc. (except for 2,500,000 shares of restricted stock) which Advantage Media Corp. will not sell, pledge or hypothecate or otherwise agree to dispose of for 90 days following the initial dissemination of this advertisement. Neither Advantage Media Corp., nor its affiliates will buy or sell any shares of Arch Therapeutics, Inc. during the period that this advertisement is being disseminated by FSM third party media vendors.

arth1

 

 

Full disclaimer:

Endorser/Publisher IMPORTANT NOTICE AND DISCLAIMER: Market Authority, Inc., and Ian Cooper expect to receive future subscription revenues, the amount of which is not known at this time, with respect to the publication of this Advertisement. No representation is made that actual purchases and sales were made at any prices that may be stated herein. Facts stated in this article were supplied to endorser from third-party sources. Ian Cooper has been compensated $10,000 by Advantage Media Group for endorsing this product, and Market Authority has been paid a $25,000 by Advantage Media Group for sending out this advertisement. 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. MARKET AUTHORITY AND ENDORSER OWN NO SHARES, OPTIONS, OR WARRANTS in the security that is the subject of this advertisement, and Company policies are in place that preclude such ownership. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should verify by their own independent research all of the claims made in this advertisement. Neither Market Authority nor any endorser of this product is responsible for errors or omissions. Neither Market Authority nor Endorser claim any special expertise or knowledge regarding the described industry. Endorser has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. Be extremely careful, because investing in securities carries a high degree of risk; you have a very real risk of losing some or all of the investment, or not making the profit from you investment that you expect. The advertised company’s financial position and all other information regarding the company should be independently verified directly with the company, which is the best source of comprehensive information. Additional information about many publicly traded companies and other investor resources can be found at the Securities and Exchange Commission’s website at www.sec.gov. 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. Investing in securities is speculative and carries risk, including the risk of losing your original investment. It is recommended that any investment in any security should be made only after consulting with your investment advisor and only after reviewing all publicly available information, including the financial statements of the company. This mailing piece is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy securities, nor should it be construed as the provision of any investment-related advice or services tailored to any particular individual’s financial situation or investment objective(s). Market Authority, Inc. is not an investment advisor, nor does it offer brokerage services. Your decision to make the investments represented in this advertisement may benefit the company through continued advertising revenue and subscriptions, but Market Authority does not earn or accept any commission directly from the companies described in any of its promotional materials. Market Authority and the publisher of this newsletter are independent companies offering impersonalized investment-related research to readers and/or prospective readers and is not an investment adviser. As such, it relies upon the “publisher’s exclusion “as provided under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. All information we present is to be reliable, but its accuracy cannot be guaranteed. Additionally, it includes forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected growth of the featured company. Any statements that express or involve discussions with respect to predictions, expectation, beliefs, plans, projections, objectives, goods, assumptions or future events or performance may be forward-looking statements. The forward-looking statements contained herein (which include all statements other than historical information) involve significant uncertainties. Factors that could cause actual results to differ from the results or implied in forward-looking statements include: the size and growth of the market for the Company’s products, the Company’s ability to fund its capital requirements in the near term and in the long term, pricing pressures for the Company’s products and services, the Company’s ability to obtain needed resources, and the local, regional and global markets. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those presently anticipated. Past performance does not guarantee future results. There is no guarantee that past results are indicative of future performance.

Third Party Advertiser/Advertising Agency IMPORTANT NOTICE AND DISCLAIMER: Advantage Media Corp., the third party advertiser, has paid $390,000 USD and is expected to pay an additional $400,000 to Full Service Media, LLC (FSM) as of June 20, 2013 for this advertising effort in an effort to build investor awareness. FSM shall retain any amounts over and above the cost of creating and distributing this email advertisement which advertises Ian Cooper’s Speed Retirement System Newsletter coverage of Arch Therapeutics, Inc., Advertising services include; production, outsourced advertising design services, online mailing and other related distribution services and digital advertising media placement costs. Advantage Media Corp., the third party advertiser, is a company based in Belize City, Belize. Advantage Media Corp. represents that it does not own any shares of Arch Therapeutics, Inc. (except for 2,500,000 shares of restricted stock) which Advantage Media Corp. will not sell, pledge or hypothecate or otherwise agree to dispose of for 90 days following the initial dissemination of this advertisement. Neither Advantage Media Corp., nor its affiliates will buy or sell any shares of Arch Therapeutics, Inc. during the period that this advertisement is being disseminated by FSM 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 FSM to buy or sell any security. FSM is a firm which refers and facilitates the services of third-party vendors and advertising related service providers to persons wishing to sponsor advertising featuring publicly-traded companies. FSM is not a financial analyst, investment advisor or broker/dealer. The services provided by FSM in connection with this advertisement are limited to the digital design of ad copy, the renting of distribution list(s), and managing the production and distribution of this advertisement. FSM is not responsible for the endorsement of this advertisement, which is the sole responsibility of Ian Cooper’s Speed Retirement System Newsletter. Ian Cooper’s Speed Retirement System Newsletter expects to generate new subscriber revenue as a result of this advertising effort. Neither FSM nor its members have an ownership interest in Ian Cooper’s Speed Retirement System Newsletter or any of its affiliates, and neither Ian Cooper’s Speed Retirement System Newsletter nor its affiliates have an equity interest in FSM. Neither FSM nor its members will trade in the securities of Arch Therapeutics, Inc. FSM 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 Arch Therapeutics, Inc. You should also determine that an investment in Arch Therapeutics, Inc. company is appropriate and suitable for you. Arch Therapeutics, Inc. is traded on the OTCQB (trading symbol: ARTH). 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 http://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 http://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 Arch Therapeutics, Inc. 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, FSM 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.

arth

 

Intraday 1-minute chart of ARTH big drop (click image to view full-size):

 

[Edit 2013-7-9]: @TMcNasty received a hard mailer promoting ARTH and tweeted pictures of it yesterday. See his tweets about the disclaimer and the front page. Images of the disclaimer and the first three pages of the mailer are below (click to enlarge):

1

2-3 arth_disclaimer2 arth_disclaimer1

 

Also, Ian Cooper’s most recent promotion was of BLGX. The landing page for that pump is here: http://www.stockofthedecade.com/. See the PDF copy of that page. BLGX never got much volume so it is hard to say exactly when the pump started. Here is its chart:

blgx_large

 

 

Disclaimer: [Update 2013-7-9 I am long 3,200 shares of ARTH that I may sell at any time] I have no position in any stock mentioned above and no relationship with Ian Cooper. I am a subscriber to PrePromotionStocks.com and I have an involved business relationship with Tim Sykes (see my terms of use for details). 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.