Promoted Stock

Okay, here’s the promoted stock scoreboard:

 

Ticker Date of Article Price @ Article Price @ 6/11/13 Decline Annualized Splits
GTXO

5/27/2008

2.45

0.011

-99.6%

-65.8%

BONZ

10/22/2009

0.35

0.004

-98.9%

-71.2%

BONU

10/22/2009

0.89

0.010

-98.9%

-71.2%

UTOG

3/30/2011

1.55

0.004

-99.7%

-93.3%

OBJE

4/29/2011

116.00

0.554

-99.5%

-92.0%

1:40

LSTG

10/5/2011

1.12

0.031

-97.2%

-88.1%

AERN

10/5/2011

0.0770

0.0002

-99.7%

-97.1%

IRYS

3/15/2012

0.261

0.003

-98.9%

-97.4%

NVMN

3/22/2012

1.47

0.080

-94.6%

-90.8%

STVF

3/28/2012

3.24

0.390

-88.0%

-82.8%

CRCL

5/1/2012

2.22

0.059

-97.3%

-96.2%

ORYN

5/30/2012

0.93

0.175

-81.2%

-80.2%

BRFH

5/30/2012

1.16

0.300

-74.1%

-73.0%

LUXR

6/12/2012

1.59

0.023

-98.6%

-98.6%

IMSC

7/9/2012

1.5

1.066

-28.9%

-30.9%

DIDG

7/18/2012

0.65

0.070

-89.2%

-91.6%

GRPH

11/30/2012

0.8715

0.180

-79.3%

-94.9%

IMNG

12/4/2012

0.76

0.180

-76.3%

-93.8%

ECAU

1/24/2013

1.42

0.420

-70.4%

-96.0%

DPHS

6/3/2013

0.59

0.107

-81.8%

-100.0%

6/11/2013

Median

-95.9%

-91.8%

Dephasium has fallen almost 82% in 6 days.  It is a definite over-achiever in losing money.

DPHS2

I promise this is not going to become an “all promoted stocks, all the time” blog.  I limit it to when I receive promotions.  I got another one today, this time to my e-mail.  The future loser is Norstra [NORX].  You can see a promotion like the one I saw here.

Here are the bullet points:

  • Never had a penny of revenue.
  • Consistent losses every year.
  • Only stays afloat by selling stock.
  • Auditors don’t think they are a going concern.
  • If management has been selling shares to get cash at $0.001, why is the stock trading near $1?

It is highly likely that this company will do badly, as have other promoted stocks that I have written about.  But here’s the fun part — I wrote to the guy whose organization sent out the promotional e-mail.  He didn’t know that they were doing that; he was concerned for the reputation of his organization, and he is putting a halt to advertising stock promotions.

And so, Aleph Blog happily takes a small victory lap.  Promoted stocks are bad enough, but when reputable firms aid them, it is far worse.

By David Merkel, CFA of Aleph Blog