Let’s trot out the promoted penny stocks scoreboard:

Ticker Date of Article Price @ Article Price @ 7/25/13 Decline Annualized Splits
GTXO

5/27/2008

2.45

0.014

-99.4%

-62.9%

BONZ

10/22/2009

0.35

0.002

-99.3%

-72.9%

BONU

10/22/2009

0.89

0.007

-99.3%

-72.2%

UTOG

3/30/2011

1.55

0.001

-99.9%

-95.3%

OBJE

4/29/2011

116.00

0.445

-99.6%

-90.8%

1:40

LSTG

10/5/2011

1.12

0.023

-97.9%

-87.2%

AERN

10/5/2011

0.0770

0.0002

-99.7%

-95.7%

IRYS

3/15/2012

0.261

0.000

-100.0%

-100.0%

 Dead
RCGP

3/22/2012

1.47

0.255

-82.7%

-70.6%

STVF

3/28/2012

3.24

0.340

-89.5%

-79.7%

CRCL

5/1/2012

2.22

0.043

-98.0%

-94.9%

ORYN

5/30/2012

0.93

0.090

-90.3%

-84.8%

BRFH

5/30/2012

1.16

0.280

-75.9%

-68.2%

LUXR

6/12/2012

1.59

0.022

-98.6%

-97.1%

IMSC

7/9/2012

1.5

1.100

-26.7%

-24.0%

DIDG

7/18/2012

0.65

0.030

-95.4%

-93.8%

GRPH

11/30/2012

0.8715

0.113

-87.0%

-93.7%

IMNG

12/4/2012

0.76

0.130

-82.9%

-91.2%

ECAU

1/24/2013

1.42

0.262

-81.5%

-94.4%

DPHS

6/3/2013

0.59

0.028

-95.3%

-100.0%

POLR

6/10/2013

5.75

0.400

-93.0%

-100.0%

NORX

6/11/2013

0.91

0.350

-61.5%

-99.0%

ARTH

7/11/2013

1.24

0.385

-69.0%

-100.0%

NAMG

7/25/2013

0.85

1.230

44.7%

6688.9%

8/26/2013

Median

-94.2%

-92.5%

Tonight’s loser in waiting is the same one that I wrote about last time, North American Oil and Gas [NAMG].  This time the Washington Times was spreading the garbage of Tobin Smith via email, as opposed to Bloomberg last time.

But wait, the stock has gone up 45% since I wrote about it.  Doesn’t that mean I am wrong?

No, that’s happened a number of times with the above stocks.  When the promotion ends, so does the stock price.

Two final notes on penny stocks:

1) iTrackr is dead.  Total loss.  Not the next Microsoft or Google.

2) Nova Mining has renamed itself The Radiant Creations Group, Inc. [RCGP].  They have changed their focus from mining to a company that:

engages in the development of various skin protection and hydration, anti-aging, liver health, weight balance, and OTC products. It provides day creams, anti-aging night creams, acne gone and sports block products, and wrinkle repair creams; and weigh control and weight loss products, as well as liver detoxifiers.

Usually, when a promoted penny stock changes strategies, it changes owners, and that is happening here.  It also likely means there will be a new promotion, where a new pump-and-dump occurs.  You might think that it is a new time for speculating, but the company is trying to buy in shares at a price below the current market price.  Closely held promoted penny stocks offer up all manner of bad surprises for the minority shareholders.  Don’t risk investing here.

By David Merkel, CFA of Aleph Blog