I first received pump emails yesterday prior to the market open on Lot78 from the various websites of Global Marketing Media LLC, that disclosed “Global Marketing Media LLC has been compensated sixty thousand dollars for a two day marketing and promotional effort on LOTE by Capital Financial Media, LLC.” Capital Financial Media aka CFM aka SmallCapFortunes.com is a big pumper and most of their pumps have hard mailers. Emails prior to the market open today came from MicroCapFortunes.com and BuyPennyStocks.com, linking to this landing page: http://www2.breakawaystocksonline.com/lot78/index.html
Disclosed budget: “up to $2,500,000”
Promoter: Eric Dickson’s Breakaway Stocks
“CFMhasmanaged [sic] a total production budget of up to $2,500,000 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 fromCFMand [sic] also expects to receive newsubscriber [sic] revenue as a result of this advertising effort.”
Two years ago Capital Financial Media (CFM) had a reputation for fairly successful large mailer pumps. They no longer have that reputation as many of their pumps in the last two years have done horribly. I am looking to short LOTE at some point, though probably not immediately. Notice the weasily way the compensation is disclosed: “up to $2,500,000” — I believe it likely that nowhere near that much ever gets spent.
Full 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. Lot78, (LOTE), the company featured in this issue, appears as paid advertising by SopacHoldings Ltd. to provide public awareness for LOTE. Breakaway Stocks and Capital Financial Media (CFM) have used outside research andwriters using public information to create the advertisement coming fromBreakaway Stocks about LOTE. Although the information contained in this advertisement is believed to be reliable, Breakaway Stocks 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. Breakaway Stocks is not offering securities for sale. An offer to buy or sell can bemade onlywith 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. CFMhasmanaged a total production budget of up to $2,500,000 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 fromCFMand also expects to receive newsubscriber revenue as a result of this advertising effort. *More information can be received fromLOTE’s investor relations firm. Further, specific financial information, filings and disclosures aswell as general investor information about publicly traded companies like LOTE, advice to investors and other investor resources are available at the Securities and Exchange Commissionwebsitewww.sec.gov andwww.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 newcompanieswith limited operations and no history of earnings. The information contained herein contains forward-looking Informationwithin 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 accordancewith the safe harbor provisions of the Private Securities LitigationReform Act, LOTE notes that statements contained herein that look forward in time,which include everything other than historical information, involve risks and uncertainties thatmay 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 termand in the long term; pricing pressures, technology issues etc.
Disclaimer: I have no position in any stock 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.
Cloud Star Corporation (OTCBB: CLDS) has a landing page online now: http://cldsreport.com/. I am not aware of how long it has been online. I was made aware of it this afternoon when I received uncompensated emails from Initial Investments LLC. An online version of that email can be seen here.
Disclosed budget: $2,500,000
Promoter: Jonathan Kolber’s Transformational Technology Report
“CloudStar Corp. (hereafter “CLDS”), the company featured in this issue, appears as paid advertising, paid by Elocin Investments $2,500,000 to enhance public awareness for CLDS … Inciti Inc., a corporation owned by an affiliate of Endorser, received a $10,000 fee for this advertising effort.”
So far there is no chatter on Twitter about CLDS. One interesting thing about this promotion is the following line from the disclaimer: “Endorsement is expressly limited to the following statement: ‘Assuming CLDS receives millions of dollars in fresh capital and hires outstanding management, capital gains are possible.'” So in other words, assuming everything goes great, this stock will be a great investment! Of course, you could say the same thing about anything, even Russian Roulette. Traders could make money in CLDS but anyone who invests for the long term will feel like playing Russian Roulette after they lose most of their money.
Full disclaimer:
IMPORTANT NOTICE AND DISCLAIMER: This paid advertisement by The Transformational Technology Report (hereafter “TTR”) 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 TTR, or an offer to sell or solicitation to buy or sell any security. CloudStar Corp. (hereafter “CLDS”), the company featured in this issue, appears as paid advertising, paid by Elocin Investments $2,500,000 to enhance public awareness for CLDS. Although the information contained in this advertisement is believed to be reliable, TTR 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, received a $10,000 fee for this advertising effort. Endorsement is expressly limited to the following statement:“Assuming CLDS receives millions of dollars in fresh capital and hires outstanding management, capital gains are possible.” Neither Jonathan Kolber nor TTR has performed independent due diligence on CLDS. TTR 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. TTR 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. TTR 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. More information can be received from the TTR website at www.transformationaltechnologyreport.com. Further, specific financial information, filings and disclosures as well as general investor information about publicly listed compa- nies 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 informa- tion 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. The Transformational Technology Report is a trademark of Jonathan Kolber. All other trademarks used in this publication are the property of their respective trademark holders. TTR and Jonathan Kolber are not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by TTR or Jonathan Kolber to any rights in any third-party trademarks.
Disclaimer: I have no position in any stock 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.
Be Active Holdings had been speculated as a potential big promotion for weeks now. Friday it finally got its first confirmed promotion by SocialStockReport.com and it got an online landing page at http://jalareport.com/ and www.socialstockreport.com/jala/
Disclosed budget: $2,200,000 (plus they say they bought 5,000,000 shares of stock not on the open market)
“CFG is managing a production budget of $2, 200, 000 which will be used for the marketing of JALA. Investors should also be aware that Cloud Focus, a subsidiary of CFG has purchased 5, 000, 000 shares of the common stock of JALA from a non-affiliated third party and will sell these shares at anytime.“
I believe that the compensation disclosed is a lie — relative to the market capitalization of the company and the number of free-trading shares outstanding $2.2m seems way too high. I am not considering buying JALA.
Important Disclaimer and Disclosure: JALA Report (JR) is a newsletter service of Cloud Focus Group (CFG). (CFG) is not a registered financial advisory. The information presented here is not an offer to buy or sell securities. CFG does not guarantee as to the accuracy of the information in this newsletter. Penny Stocks are considered to be highly speculative and may be unsuitable for all but very aggressive investors. CFG is managing a production budget of $2, 200, 000 which will be used for the marketing of JALA. Investors should also be aware that Cloud Focus, a subsidiary of CFG has purchased 5, 000, 000 shares of the common stock of JALA from a non-affiliated third party and will sell these shares at anytime. Investors should also be aware that this will affect the stock price. This report does not provide any analysis of the company’s financial position. The featured company’s financial position and all other information regarding the featured company should be verified directly with the company. The target price was determined arbitrarily and may fluctuate, please always consult a registered financial advisor before making
any decisions.
Disclaimer: I have no net position in any stock mentioned above although I am short 10,000 shares of JALA in one account and long 10,000 shares of JALA in another account. 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.
Octagon Resources (OTCBB: OCTX) had no appreciable volume prior to today, when I received an emails promoting it prior to the market open from InvestorsAlley.com and InvestorsObserver.com; the emails linked to the following pump websites: http://octxnews.com/ and http://www.octxreport.com/
Disclosed budget: $150,000 (OTCXReport.com) and $1,100,000 (OTCXNews.com)
Morgarten Financial has managed a total production budget of $150,000 for this advertising effort. John Myers’ Secret Stocks is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort.
From OCTXNews.com:
Morgarten Financial has managed a total production budget of $1,100,000 for this advertising effort. John Myers’ Secret Stocks is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort.
Important Notice and Disclaimer – This paid advertising issue of John Myers’ Secret Stocks 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 John Myers’ Secret Stocks or as an offer or solicitation to buy or sell any security. Octagon Resources 88, the company featured in this issue, appears as paid advertising paid for by Morgarten Financial to increase public awareness of the company and its prospects. All information appearing in this advertisement is taken from publicly available sources. Although John Myers’ Secret Stocks and its editor and publisher believe this information to be accurate and reliable, neither John Myers’ Secret Stocks nor its editor or publisher has independently verified any information contained in this advertisement. John Myers’ Secret Stocks or its editor or publisher makes any representation or warranty whatsoever with respect to the accuracy or completeness of any information contained herein. John Myers’ Secret Stocks 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 Octagon Resources 88 from its website at http://www.octagon-88.com. Octagon Resources 88 is a reporting company under the Securities Exchange Act of 1934, as amended, and trades on the OTC Bulletin Board under the symbol OCTX. Octagon Resources 88’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 Octagon Resources 88, 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. Morgarten Financial has managed a total production budget of $150,000 for this advertising effort. John Myers’ Secret Stocks is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort. 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 Octagon Resources 88, 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 Octagon Resources 88 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 Octagon Resources 88’s products and services, its ability to develop and distribute its products, 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.
Important Notice and Disclaimer – This paid advertising issue of John Myers’ Secret Stocks 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 John Myers’ Secret Stocks or as an offer or solicitation to buy or sell any security. Octagon Resources 88, the company featured in this issue, appears as paid advertising paid for by Morgarten Financial to increase public awareness of the company and its prospects. All information appearing in this advertisement is taken from publicly available sources. Although John Myers’ Secret Stocks and its editor and publisher believe this information to be accurate and reliable, neither John Myers’ Secret Stocks nor its editor or publisher has independently verified any information contained in this advertisement. John Myers’ Secret Stocks or its editor or publisher makes any representation or warranty whatsoever with respect to the accuracy or completeness of any information contained herein. John Myers’ Secret Stocks 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 Octagon Resources 88 from its website at http://www.octagon-88.com. Octagon Resources 88 is a reporting company under the Securities Exchange Act of 1934, as amended, and trades on the OTC Bulletin Board under the symbol OCTX. Octagon Resources 88’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 Octagon Resources 88, 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. Morgarten Financial has managed a total production budget of $1,100,000 for this advertising effort. John Myers’ Secret Stocks is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort. 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 Octagon Resources 88, 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 Octagon Resources 88 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 Octagon Resources 88’s products and services, its ability to develop and distribute its products, 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.
[Edit 2013-4-19 to add details on OCTXExposed.com]:
Prior to the market open on April 18, 2013 I received an email from InvestorsAlley.com promoting OCTX and linking to OCTXExposed.com. All the details of the pump are different at this website than at the above-listed websites.
Disclosed budget: $250,000
Promoter: Hampton Business and Jarret Wollstein
Paying party: ??
Shares outstanding: 21,235,473
Previous closing price: $9.39
Market capitalization: $199 million
Excerpt from disclaimer:
This paid advertising issue of Jarret Wollstein’s Intelligent Investor Report (hereafter “IIR”) 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 Jarret Wollstein or IIR or as an offer or solicitation to buy or sell any security.
…
Hampton Business has managed a total production budget of $250,000 for this advertising effort. IIR is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort.
Full disclaimer (OCTXExposed.com):
Important Notice and Disclaimer – This paid advertising issue of Jarret Wollstein’s Intelligent Investor Report (hereafter “IIR”) 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 Jarret Wollstein or IIR or as an offer or solicitation to buy or sell any security. IIR does not perform any due diligence on the stocks and companies discussed herein. Octagon Resources 88, the company featured in this issue, appears as paid advertising paid for by Hampton Business to increase public awareness of the company and its prospects. All information appearing in this advertisement is taken from publicly available sources. Although IIR and its editor and publisher believe this information to be accurate and reliable, neither IIR nor its editor or publisher has independently verified any information contained in this advertisement. IIR or its editor or publisher does not makes any representation or warranty whatsoever with respect to the accuracy or completeness of any information contained herein. IIR 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. Jarret Wollstein and IIR 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. IIR 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. IIR does not offer or sell securities. You can obtain more information about Octagon Resources 88 from its website at http://www.octagon-88.com . Octagon Resources 88 is a reporting company under the Securities Exchange Act of 1934, as amended, and trades on the OTC Bulletin Board under the symbol OCTX. Octagon Resources 88’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 Octagon Resources 88, 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. This advertisement is not intended for readers in any jurisdiction where not permissible under local regulations and investors in those jurisdictions should disregard it. Hampton Business has managed a total production budget of $250,000 for this advertising effort. IIR is being paid $7,500 and also expects to receive new subscriber revenue as a result of its participation in this advertising effort. 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. Past performance does not guarantee future results. This paid advertisement contains forward-looking statements regarding Octagon Resources 88, 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 Octagon Resources 88 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 Octagon Resources 88’s products and services, its ability to develop and distribute its products, 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. Jarret Wollstein’s Intelligent Investor Report is a trademark of Jarret Wollstein. All other trademarks used in this publication are the property of their respective trademark holders. IIR is not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by IIR to any rights in any third-party trademarks.
Dr. Octagonapus:
[Edit 2013-9-5]: Over the last weekend I was made aware of a new landing page online for OCTX, at http://www.octagon88report.com/. This pump page has a different paying party and a separate $500,000 budget.
Excerpt from disclaimer:
Octagon 88 Resources (hereafter “OCTX”), the company featured in this issue, appears as paid advertising. Zhangyang Limited has budgeted $500,000 for the dissemination of this info to enhance public awareness for OCTX
Disclaimer:
IMPORTANT NOTICE AND DISCLAIMER: This paid email advertisement by Don McShane (hereafter “DM”) 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 DM, or an offer to sell or solicitation to buy or sell any security. Octagon 88 Resources (hereafter “OCTX”), the company featured in this issue, appears as paid advertising. Zhangyang Limited has budgeted $500,000 for the dissemination of this info to enhance public awareness for OCTX. Although the information contained in this advertisement is believed to be reliable, DM 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. DM has received six thousand dollars for this and related marketing materials. DM also expects to receive new subscriber revenue, the amount which is unknown at this time, as a result of this advertising effort. DM 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. DM 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 OCTX’s website at www. gamericanenergy.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. DM 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 DM to any rights in any third-party trademarks.
Disclaimer: [Post last edited on 2013-4-19; I have no position in OCTX.] I have no position in any stock 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.
With its second suspension of trading in an active stock promotion this month (the prior suspension was of SUSA), it looks like the SEC is finally getting serious about companies that issue inaccurate press releases to coincide with their stock promotion. Endeavor Power Corp (EDVP) was suspended today prior to the market open.
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.
The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company.
Endeavor Power had been promoted yesterday (technically, after the market close on 3/6/2013) and had 1,486,475 shares trade that day. See one of the promotion emails online. It was promoted by Andalusion Holding Co. websites (which now appear to be violating CANSPAM by no longer including a legal name and address at the bottom of their emails):
Please be advised by Serious Penny Stock has been compensated fifty five thousand dollars for this email alert
The Andalusion Holding Co. websites are as follows:
Endeavor Power previously had been promoted on January 9th by Blue Wave Advisors LLC and a couple other promoters:
BlueWave Advisors LLC has been compensated seven thousand five hundred dollars from Bulls in Advantage LLC for EDVP marketing and promotional services.
There is also currently a landing page online at http://www.edvpreport.com/ that dicloses a $230,000 budget to promote Endeavor Power Corp. See an archived PDF copy of that page.
Investor Alley Inc. expects to be compensated two hundred thirty thousand dollars for the creation of this promotional effort of EDVP. Affiliates, managers, employees, and third parties of Investor Alley Inc. may have shares of EDVP and may liquidate, which will negatively affect the share price of EDVP.
Disclaimer: I have no position in any stock mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.
I have recently noticed that on some pump and dumps Interactive Brokers’ short stock borrow costs have gotten rather high. On ECAU, SWVI, and GNIN the borrow costs have been at times about 50% APR. Even worse, Interactive Brokers does not charge based on the total value of the position, but based on the value of the position after rounding up the share price to the nearest dollar, so a 20,000 share short of a stock at $0.20 will incur borrow fees not based on the $4,000 position size but based on the amount of $20,000 (20,000 x $1). Likewise, for a stock priced at $1.06, the price would be rounded up to $2.00 for calculating position size for the purpose of interest. So to calculate your borrow cost, you need to take the APR, multiply by the number of shares and the stock price rounded up to the next dollar. That is the annual borrow cost; divide by 360 to get the daily borrow cost (which is also charged on weekends).
So for a 10,000 share short position in SWVI, with a 50% APR, the daily borrow cost is 10,000 x 0.50 x $1.00 / 360 = $13.89. For a position with a value of about $2000 that is a pretty hefty fee to pay (and the equivalent of an APR over 250%). It is still worth it for a couple days or weeks if it drops another 50% or so, but that fee is unpleasantly high. See Interactive Broker’s explanation for this policy.
Disclaimer: I am short SWVI; have no position in any other stock mentioned; my positions may change at any time after this is posted. 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.
Colin McCabe, publisher of Elite Stock Report, The Stock Profiteer, and Resource Stock Advisor, was just sued today by the SEC. McCabe has previously drawn the ire of Chuck Jaffe of MarketWatch. The essence of the SEC’s complaints are that McCabe promoted stocks to his paying subscribers without disclosing his compensation, he lied about the research that went into his picks, and he lied about one particular pump, GNXP (Guinness Exploration). The main allegations against McCabe are fairly standard — failing to disclose compensation and blatant lying. What I find more interesting is that the SEC spends a decent portion of the complaint alleging McCabe’s misrepresentation of his service. If the SEC can win on those allegations then I would expect them to become more aggressive in pursuing other promoters who use aliases or lie about the research they put into stock promotions.
From the litigation release:
In its complaint, the Commission alleges that, from at least early 2008 through 2011, McCabe, among other things: made false and misleading claims about how he selected recommended stocks; failed to disclose to his newsletter subscribers that he was being paid substantial sums to recommend some of the same stocks in his other publications; and made false and misleading statements about the assets of one of the issuers he recommended.
Here are the allegations of lying about his research process and other details of his picks (from the complaint, emphasis mine):
19. Beginning in 2006, when McCabe began publishing Elite Stock Report, and in 2009, when McCabe began publishing The Stock Profiteer and Resource Stock Advisor, McCabe falsely claimed that his Elite Stock Report, The Stock Profiteer and Resource Stock Advisor publications were the result of extensive research conducted by researchers with relevant expertise and contacts. In fact, McCabe’s research was limited to reviewing issuer filings with the Commission, press releases, and the issuer website. He did not have any assistance in researching stocks or writing his publications. These false and misleading statements are believed to have continued through 2011, when McCabe claims to have ceased publishing Elite Stock Report, The Stock Profiteer and Resource Stock Advisor.
20. In the January 2009 issue of Elite Stock Report, McCabe falsely claimed that “[w]e research every company intensely and no company gets the go ahead unless they pass the ‘Profit-Potential Checklist.’ One of the must-haves on that list is a high probability of big, juicy returns. Triple-digits minimum.” Clearly, there was no “we” since McCabe alone did the research. Also, McCabe did not utilize “Profit-Potential Checklist” to assess the probability of such extraordinary returns.
21. Elite Stock Report’s website also falsely claimed that McCabe identified his recommendations “[t]hrough his network of global connections” and claimed that “his contacts extend deep into the world’s hottest resource investment zones — particularly Asia, Europe, and of course, North America — resulting in a wealth of knowledge and opportunity for his readers.” In fact, McCabe’s recommendations were not acquired or informed by a network of global connections, and were instead the result of McCabe’s review of public filings and issuer websites.
22. When Elite Stock Report moved to an online-only format for subscribers beginning with the January 2009 issue, it claimed that the change meant that “we can provide you with . . . more in-depth analysis [and] additional ground breaking research . . . of the companies we follow.” However, McCabe did not conduct any such “ground breaking research” or “in-depth analysis” prior to making stock recommendations.
23. Similarly, McCabe falsely represented on The Stock Profiteer website that a “research team” made the stock recommendations in The Stock Profiteer. McCabe claimed that “[o]ur research team has hundreds of information sources and contacts, and years of experience in the analysis of small stocks.” In fact, there was no research team, McCabe made stock recommendations himself, and he had no special expertise or network of contacts.
24. McCabe claimed on The Stock Profiteer website that his researchers applied “a scientific (and proven) selection methodology to small stocks…” In the first issue of The Stock Profiteer, McCabe falsely represented that recommended stocks were identified by “my time-tested, proprietary investing methodology.” Subsequent issues also referenced McCabe’s proprietary research and “proprietary system” for selecting stocks. However, there was no “proprietary” system or scientific methodology.
25. McCabe also misled readers about who prepared The Stock Profiteer publications. When McCabe began publishing The Stock Profiteer in 2009, he sent an alert to Elite Stock Report subscribers which read: “My good friend Joe Marino is launching his brand new publication The Stock Profiteer tomorrow, and he was kind enough to make you a very special offer because you’re a loyal Elite Stock Report subscriber…Joe will be releasing his first blockbuster pick tomorrow and from what he’s told me, it’s a sure-fire grandslam.” The Stock Profiteer publications consistently stated that Joe Marino was the editor. However, Joe Marino never existed and is an alias used by McCabe to disguise his responsibility for The Stock Profiteer.
26. McCabe made similar false statements with respect to Resource Stock Advisor in various publications disseminated between 2009 and 2011. Under the heading “Who is Roger Gaines?” Resource Stock Advisor’s website claimed that he is “[a] highly-trained economist who can spot trends before they happen, Roger Gaines spent most of the last decade either working ‘in the trenches’ of Wall Street or traveling the globe in search of the world’s best resource investment opportunities.” However, Roger Gaines never existed and is simply another alias used by McCabe. McCabe has no experience “working ‘in the trenches’ of Wall Street” and, in fact, he was writing his stock promoting newsletters from his home in British Columbia Similarly, McCabe did not travel the world in search of resource companies to recommend to his readers.
27. McCabe knowingly or recklessly made the above misleading statements and omissions regarding his purported research process, publications, and stock recommendations. These misleading statements and omissions were material since subscribers and investors considered the information provided by McCabe when deciding whether to buy his recommended stocks and they would have been less likely to buy the stocks he recommended if they had known the true facts.
Here are the allegations of failing to disclose his compensation to his paying subscribers (from the complaint):
28. As described above, McCabe told his subscribers that his stock picks were the result of extensive research, experience, and contacts. In fact, McCabe was being paid more than $16 million to promote some of these stocks. However, McCabe did not disclose his receipt of this compensation to his subscribers even though he was being compensated during the same timeframe that he recommended the stocks to them.
Here are the allegations of lying about GNXP (from the complaint):
33. In February 2010, McCabe distributed a paid mass mailing to non-subscribers as an Elite Stock Report “Special Report” titled “My latest junior gold pick will hand my subscribers Monster-gains inside the next 60 days…and could go 10-for-1 in the next 12 months.” The recommended stock was Guinness, and McCabe distributed a virtually identical report multiple times over the next several months. Case 2:13-cv-00161-BCW Document 2 Filed 03/05/13 Page 9 of 12
34. In those reports, and in concurrent Elite Stock Report subscriber publications, McCabe falsely represented that Guinness had acquired an 8,000 acre property in the middle of the Tintina Gold Belt in the Yukon Territory of Canada well before discoveries in May 2009 turned the region into “a red-hot area play.” McCabe also claimed that the property held “an estimated recoverable resource in excess of 1 million ounces of gold.”
35. In fact, Guinness had not purchased the relevant property until November 2009 – well after the May 2009 discoveries that McCabe claimed increased the value of the property. Thus, McCabe’s statements about the fortunate timing of Guinness’ property acquisition were false and misleading. Moreover, Guinness never claimed that its property held “an estimated recoverable resource in excess of 1 million ounces of gold,” and McCabe’s representations in this regard were false and misleading.
The most recent promotion that I saw McCabe do was of Tuffnell (TUFF) just under two years ago. People reportedreceiving hard mailers for TUFF around March 30th, 2011. TUFF most recently traded at $0.0051, over 98% down from its highs during the promotion. Here is the stock chart from that time period:
Below are scans from the mailer, courtesy of Peter Michaelson:
(click images to see full size)
[Edit 2014-7-21]: The British Columbia Securities Commission found that Colin McCabe made misrepresentations and acted contrary to the public interest. They have not announced penalties against him yet.
Press release:
2014/55
July 15, 2014
Vancouver – A British Columbia Securities Commission panel has found that a tout sheet publisher made misrepresentations and other misleading statements when promoting three companies traded on the Over-the-Counter-Bulletin-Board (OTCBB) in the United States. The panel also found that the managing director of a Swiss company facilitated secret payments to the tout sheet publisher in connection with one of the promotions
The panel found that between October 2009 and July 2010, Colin Robert Hugh McCabe, of Abbotsford, B.C., featured three OTCBB-listed companies in his Elite Stock Report tout sheet. The panel said that McCabe “wrote and published grossly misleading reports while acting on retainer from third parties without knowing, or even inquiring, as to the parties’ interest in the promotion, or its purpose.” The panel also found that McCabe “facilitated clandestine payment arrangements.”
The panel found that McCabe engaged in egregious conduct contrary to the public interest. The panel said, “In our opinion those who ultimately profited through these promotions, or hoped to do so, could have done so only by improper market conduct, which would reasonably call into question the confidence that should be placed on our capital markets if this sort of conduct were tolerated.”
McCabe was asked to promote one of the companies by Erwin Thomas Speckert, the managing director of a Swiss company called Everest Asset Management. The panel found that Speckert acted as an intermediary for unknown persons and arranged secret payments to McCabe.
The panel found that Speckert engaged in conduct contrary to the public interest. Speckert “had to have known that the purpose of these arrangements was to conceal the relationship between the unknown persons and McCabe,” the panel said. “Speckert’s facilitation of secret payments to McCabe made him an active participant in the process and was an essential part of the promotion.”
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
You may view the findings decision on our website www.bcsc.bc.ca by typing Colin Robert Hugh McCabe, Erwin Thomas Speckert, or 2014 BCSECCOM 269 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
Disclaimer: I have no position in any stock mentioned above and no connections with any people 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.
Today the SEC suspended trading in Southern USA Resources (SUSA). This hard mailer pump has been going for just over a month, with the volume starting around January 15th. It is rare for the SEC to suspend trading in a stock while the promotion is still ongoing.
Tim Lento posted a scan of the hard mailer. The compensation was listed as $900,000.
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) the
company’s outstanding shares.
I have been looking for SUSA shares to short for weeks for a long-term short but was not able to find any. SUSA will resume trading in two weeks on the grey sheets. I expect SUSA to gap down over 50% when it reopens for trading.
Part of the SUSA pump involves a research report by Chris Jarvis, CFA, CMT (President & CEO of Caprock Risk Management LLC); Caprock was paid $15,000 by SUSA for the report. Should I find the time, I do hope to eventually put together detailed reports attacking Jarvis and other ‘rent-an-analysts’ that put out fluffy research reports about pump and dump companies. After that, hopefully their crappy research would be less useful to pumpers. A similar outfit is Murphy Analytics.
Looking at Jarvis’ one year price target of $4.00 for SUSA and his heady revenue (almost $25m for FY2013!) and profit predictions are all I need to see to prove that the report is so biased as to be worthless. Since April 27, 2012 SUSA has owned the property in Alabama that it wants to mine, and yet it has zero revenues since then and its current liabilities as of its most recent 10Q are greater than all of its assets. That is hardly the recipe for doing any mining whatsoever, let alone generating tens of millions of dollars in revenue this year.
Disclaimer: I have no position in any stock 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.
It looks like Green Innovations Ltd. (GNIN) is the new Brighton Markets pump and dump (thanks to Tim for the confirmation).. Their last two pumps were PUNL and IDNG. Both offered some nice opportunities for speculators to make money on the long side, but both had truly epic dumps.
GNIN (Green Innovations Ltd)
Current market cap: $36 million
Free trading shares owned by seed shareholders: 20m
[Edit 2/10/2013] – This company loves mucking about with their share structure. As of October 1st, 2012, a 20 for 1 forward split became effective and the company’s shares outstanding increased from 5m to 100m. However, the company had already issued 49.5m shares (post split) and canceled 79.5m shares (post-split) in the reverse-merger dated September 26th, 2012. This reduced shares outstanding to 70m, Then 45m of the remaining 70m shares were canceled and replaced with 5m super-voting preferred shares, leaving the company with 25m common and 5m preferred shares outstanding.
[Edit 2/21/2013] – Here is a chart of GNIN after the dump:
PUNL (Punchline Resources) – click to enlarge
Maximum market cap: $82 million
Free trading shares: 20m (at time of promotion)
IDNG (Independence Energy Corp) — click to enlarge
Maximum market cap: $116 million
Free trading shares: ?? (at time of promotion)
Disclaimer: I have no position in any stock 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.
Here is a daily candlestick chart of STVF, the previous Chuck Hughes / Providence Media Strategies LLC pump. If ECAU follows the same pattern then it has more downside today and a week of bouncing ahead of it. Of course, history never repeats exactly.
Providence Media Strategies LLC runs the following pump and dump websites (they have others as well that have been added since the STVF pump a year ago):
In the last year Providence Media Strategies LLC has also pumped GRPH and ORYN with someone other than Chuck Hughes doing a mailer on each, both with less success than STVF or ECAU.
STVF pump chart (click to enlarge):
PDF copy of STVF pump website (currently online at STVFreport.com)
ECAU pump chart (click to enlarge):
PDF copy of ECAU pump website (currently online at ECAUreports.com)
Disclaimer: I have no position in any stock mentioned above, although I did short ECAU and cover prior to this post and look to reshort in the future. I have no relationship with any parties named 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.
