Promoted Stock Pump and Dump: The Latest Penny Stock

0
Promoted Stock Pump and Dump: The Latest Penny Stock
<a href="https://pixabay.com/users/3112014/">3112014</a> / Pixabay

Promoted Stock Pump and Dump: The Latest Penny Stock

Okay, time for the promoted stock scoreboard:

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

5/27/2008

Carlson Capital Thinks The SPAC Boom May Be Over [Q1 Letter]

Black DiamondCarlson Capital's Black Diamond Arbitrage Partners fund added 1.3% net fees in the first quarter of 2021, according to a copy of the firm's March 2021 investor update, which ValueWalk has been able to review. Q1 2021 hedge fund letters, conferences and more At the end of the quarter, merger arbitrage investments represented 89% of Read More


2.45

0.008

-99.7%

-67.1%

BONZ

10/22/2009

0.35

0.002

-99.3%

-73.5%

BONU

10/22/2009

0.89

0.005

-99.4%

-74.3%

UTOG

3/30/2011

1.55

0.005

-99.7%

-91.5%

OBJE

4/29/2011

116.00

0.315

-99.7%

-92.9%

1:40

LSTG

10/5/2011

1.12

0.032

-97.2%

-86.2%

AERN

10/5/2011

0.0770

0.0002

-99.7%

-96.3%

IRYS

3/15/2012

0.261

0.003

-98.9%

-96.3%

NVMN

3/22/2012

1.47

0.300

-79.6%

-69.4%

STVF

3/28/2012

3.24

0.348

-89.3%

-81.4%

CRCL

5/1/2012

2.22

0.040

-98.2%

-96.2%

ORYN

5/30/2012

0.93

0.085

-90.9%

-87.5%

BRFH

5/30/2012

1.16

0.450

-61.2%

-56.1%

LUXR

6/12/2012

1.59

0.016

-99.0%

-98.4%

IMSC

7/9/2012

1.5

1.140

-24.0%

-23.1%

DIDG

7/18/2012

0.65

0.052

-92.0%

-91.6%

GRPH

11/30/2012

0.8715

0.136

-84.4%

-94.3%

IMNG

12/4/2012

0.76

0.160

-78.9%

-91.3%

ECAU

1/24/2013

1.42

0.318

-77.6%

-95.0%

DPHS

6/3/2013

0.59

0.040

-93.2%

-100.0%

POLR

6/10/2013

5.75

0.510

-91.1%

-100.0%

NORX

6/11/2013

0.91

0.510

-44.0%

-99.2%

ARTH

7/11/2013

1.24

0.550

-55.6%

-100.0%

7/25/2013

Median

-92.0%

-91.6%

Tonight’s loser in waiting is North American Oil & Gas Corp [NAMG].  Formerly known as CalendarDragon, a software company, it became North American Oil & Gas.  If the company were as good as the promoter says it is, it would never have bought a penny stock shell.  It would have negotiated with private equity companies.  Why would you make great claims, and yet:

  • Have negative income, always
  • Negative net worth
  • No revenues, always

Note the risk factor from the 8-K:

We have no oil or gas reserves, and the probability of an individual prospect ever having oil and gas is extremely remote and therefore any funds we spend on exploration will likely be lost.
 
The probability of an individual prospect ever having oil and gas is extremely remote. In all probability, the property does not contain any oil and gas. As such, any funds spent on exploration will probably be lost which will have a negative effect on our operations and a loss of your investment.

This is a constant with promoted stock scams.  They work on dud companies, then a promoter tells a story.  The SEC should prosecute such newsletter writers.  The scams could not work without them, at least for now.

Anyway, expect losses here, as usual.  The major energy companies have a far better idea of where they can find energy than a few people can.

Finally, please note in the 4-point type that the writer is getting paid over $100,000 to write the piece, and he does not have a lot of costs, because it is done online.  I saw the ad at Bloomberg.com.  Hey, Michael Bloomberg, Hopkins Grad like me!  Do you want to be associated with penny stock promotions?  You don’t have enough money already?

This stuff stinks.  Really stinks, like flatus.

By David Merkel, CFA of alephblog

Previous article Facebook Inc (FB) Mobile Ads Turn Out To Be A Game Changer
Next article Amazon.com Inc. (AMZN): Solid Results, Cautious Guidance
David J. Merkel, CFA, FSA — 2010-present, I am working on setting up my own equity asset management shop, tentatively called Aleph Investments. It is possible that I might do a joint venture with someone else if we can do more together than separately. From 2008-2010, I was the Chief Economist and Director of Research of Finacorp Securities. I did a many things for Finacorp, mainly research and analysis on a wide variety of fixed income and equity securities, and trading strategies. Until 2007, I was a senior investment analyst at Hovde Capital, responsible for analysis and valuation of investment opportunities for the FIP funds, particularly of companies in the insurance industry. I also managed the internal profit sharing and charitable endowment monies of the firm. From 2003-2007, I was a leading commentator at the investment website RealMoney.com. Back in 2003, after several years of correspondence, James Cramer invited me to write for the site, and I wrote for RealMoney on equity and bond portfolio management, macroeconomics, derivatives, quantitative strategies, insurance issues, corporate governance, etc. My specialty is looking at the interlinkages in the markets in order to understand individual markets better. I no longer contribute to RealMoney; I scaled it back because my work duties have gotten larger, and I began this blog to develop a distinct voice with a wider distribution. After three-plus year of operation, I believe I have achieved that. Prior to joining Hovde in 2003, I managed corporate bonds for Dwight Asset Management. In 1998, I joined the Mount Washington Investment Group as the Mortgage Bond and Asset Liability manager after working with Provident Mutual, AIG and Pacific Standard Life. My background as a life actuary has given me a different perspective on investing. How do you earn money without taking undue risk? How do you convey ideas about investing while showing a proper level of uncertainty on the likelihood of success? How do the various markets fit together, telling us us a broader story than any single piece? These are the themes that I will deal with in this blog. I hold bachelor’s and master’s degrees from Johns Hopkins University. In my spare time, I take care of our eight children with my wonderful wife Ruth.

No posts to display