Promoted Stock Pump and Dump Scoreboard

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Promoted Stock Pump and Dump Scoreboard
AnandKZ / Pixabay

Promoted Stock Pump and Dump Scoreboard

Okay, here’s the promoted stock scoreboard:

 

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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

Updated on

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.
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