May 27

NuGene International $NUGN Mailer pump

I must admit that I have not been following pumps as closely as I used to because so few of them have enough volume to be interesting to me. So I only noticed that NuGene International (NUGN) was being pumped by a 28-page glossy hard mailer when I saw this tweet about it. I checked Twitter and sure enough numerous people reported receiving the mailer promoting the stock over the last two weeks. Below is a shot of the cover of the mailer:

NUGN_mailer

Disclosed budget: $2,287,000 (likely exaggerated)
Promoter:  MicroCap MarketPlace / Casson Media Group Inc
Paying party:  Result Corporation
Shares outstanding: 39,584,673
Previous closing price: $3.24
Market capitalization: $128 million

 

Excerpt from disclaimer:

Casson Media Group, Inc. (CMG), an affiliated company of MicroCap MarketPlace has received nine thousand dollars in cash compensation from Result Corporation, a third party shareholder of NUGN to assist in the writing of this Advertisement, and anticipates receiving potential future subscription and advertising revenues, the amount of which is not known and cannot be predicted at this time. Result Corporation, besides compensating CMG, paid two million two hundred and eighthy thousand dollars to marketing vendors to cover all the costs of creating and distributing theis Advertisement, including printing and postage, in an effort to build investor and market awareness.

nugn

PDF scan of full mailer

Disclaimer: I have no position in NUGN as I write this although I have traded it today and intend to trade it in the near future. I have no relationship with any parties 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.

May 11

Riviera Tool Corp $RIVT does a NEST

When people ask why I prefer to trade penny stocks and preferably OTC stocks, my answer is that I prefer to trade against people who are less intelligent and experienced than I am. Considering all the smart people working at hedge funds I would likely be less intelligent and less experienced than the people trading big money on real stocks like Apple and Tesla. But every once in awhile the amount of stupidity I see in the trading of a stock astounds even me. Riviera Tool Corp (RIVT) is a recent example of this.

What happened with Riviera Tool Corp (RIVT)? After the market close on Wednesday, May 6th, the Detroit Free Press reported that Tesla (TSLA) was buying “Riviera Tool” of Grand Rapids, a tool and die supplier to Tesla. After Riviera Tool Corp (RIVT) started spiking Jason Shubnell of Benzinga reported the acquisition and specified that it was Riviera Tool Corp (RIVT) that Tesla was buying, which was wrong — it was Riviera Tool LLC that was acquired. Riviera Tool Corp had all its assets seized by creditors back in 2007 and had been an empty shell since then. For summaries of exactly how there came to be a public zombie shell Riviera Tool Corp and a private Riviera Tool LLC, see this SeekingAlpha article. After the market close on the first day Riviera Tool Corp was halted by FINRA (U3 halt)  and it remains halted as I type this. See the intraday chart of RIVT on the day it spiked.

Back in 2013 a similar situation happened with Nestor Inc. (NEST) after Al Gore talked positively about Nest (maker of the Nest learning thermostat). Dumb investors/traders bought the stock of Nestor, which at the time was essentially a shell company with no assets, thinking it was Nest Inc. Take a look at the intraday charts of NEST over the three days it ran up and then dumped back down (days 1 and 2; day 3). Here is a description of what happened. When Google acquired Nest in early 2014 Nestor Inc stock had another run. The NY Times Dealbook had a nice description of what happened then.

The Nestor / Nest confusion wasn’t even the only time that happened in 2013. In the same month that year there was lots of talk about Twitter (TWTR) going public and the company started filing paperwork for its eventual IPO. Traders then bought stock in bankrupt (and essentially worthless shell) Tweeter Inc (TWTRQ) and the stock shot up from 1 cent to 14 cents. Even after the first run up and a halt to change the ticker to THEGQ so that people would not be confused the stock had a second run up two weeks later and ran from 2 cents to 10 cents.

 

Disclaimer: This article has been edited to show that NEST had two separate dumb runs after news of Nest Inc. I am short 15,000 shares of RIVT at Interactive Brokers that I will look to cover when it reopens for trading. I have no relationship with any parties 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.

Apr 29

Dwayne Bigelow arrested for pumping and dumping

Dwayne Bigelow, 46, a Florida resident, was arrested last week for his involvement in a wide-ranging scheme of stock promotion and manipulation. See the Department of Justice press release. He was charged with

one count of conspiracy to commit securities fraud and wire fraud (Count One), three counts of securities fraud (Counts Two through Four), and three counts of wire fraud (Counts Five through Seven). The securities and wire fraud charges carry a maximum term of 20 years in prison on each count, and the conspiracy charge carries a maximum term of five years in prison.

The thing about big pump and dump scams is that there are many different people involved: the people who run the companies and put out press releases, the stock promoters, nominee owners  and the insiders who run everything behind the scenes while making most of the money. While the complexity can make it hard to investigate a pump and dump, once some of the people have been charged criminally it becomes likely that they will then inform on others to get a better plea deal. This appears to be what has happened to Dwayne Bigelow. One of the three stocks mentioned in this indictment was SMCE, also mentioned in the Jamie Boye / Eric Cusimano indictment from a year ago. The other two stocks mentioned were also promoted by websites controlled by Cusimano or Boye or their associates: EWPI and SIRG.

From an email I received on April 5th, 2010 from Jackpotpennystocks.com:

Most of these pharma companies trade on pure speculation, but EWPI is a reality.  EWPI looks like like they could easily become one of the fastest growing small cap pharma companies in the game.

That matches the quote in the indictment.

The indictment can be read here.

 

Disclaimer: I have no position in any stock mentioned. I have no relationship with any parties 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.

Apr 22

SEC Suspends trading in Force Energy $FNRG – First suspension of a Nasdaq stock

Yesterday the SEC suspended trading in Force Energy (FNRG), which is the first time I have ever seen a listed stock receive an SEC trading suspension. Listed stocks often get halted, delisted, and then suspended, but I have never seen one get suspended prior to the stock being delisted. The executive chairman of the board of directors, Richard St. Julien, was arrested over the weekend so perhaps that led to the extra quick action. The stock was halted by the Nasdaq on Monday, July 20th at 10:21:37 AM with a T12 halt code (additional information requested by Nasdaq). The SEC suspended trading in premarket the next day.

SEC Suspension notice (PDF)
SEC Suspension order (PDF)

The reason given for the suspension was:

due to concerns about the adequacy and accuracy of information available to investors concerning the funding of recent articles and promotions touting FNRG, including for example in articles published on December 9, 2014 and February 26, 2015. Questions have also arisen concerning potential manipulative activity of FNRG’s stock, including transactions between February 25 and April 2, 2015 and the funding of those transactions.

The press release by the Department of Justice contains more information about why St. Julien was arrested:

Through his scheme, St. Julien and his co-conspirators deceived the investing public by creating the appearance of genuine trading volume and interest in ForceField’s stock, and as a result, from approximately January 2014 to April 2015, the price of the stock rose from a low of $4.55 per share to a high of $7.82 per share.

FNRG’s stock price had dropped precipitously in the days prior to the halt thanks to a negative report by Mox Reports released on April 15th. That was an excellent (and timely) look at the comopany and it may even have caused the Feds to arrest St. Julien sooner than they had planned.

fnrg

The promoter that was paid to promote FNRG has been identified as Big Investment Group LLC. See some screenshots of them promoting FNRG.

Disclaimer: I have no position in any stock mentioned. I have no relationship with any parties 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.

 

Mar 20

SEC Suspended trading in pump and dump Spriza $SPRZ on March 4th

On March 4th the SEC suspended trading in another landing page pump, Spriza (SPRZ). One key insider of Spriza was also involved in Telupay (TLPY) which likely explains why Stocktips.com abandoned that pump after only a week.

SEC Suspension notice (PDF)
SEC Suspension order (PDF)

The SEC was quite specific in explaining why it suspended trading in SPRZ:

The Commission temporarily suspended trading in Spriza, Inc. because of questions regarding the accuracy of assertions by Spriza, Inc., including assertions regarding business relationships in a company press release dated February 6, 2015, a Form 8-K and in a video created by the company.

The Commission acknowledges the assistance of FINRA and the Alberta Securities Commission’s assistance in this matter.

You can read the February 6th press release. The name dropping in the press release certainly didn’t help the company:

“We’re like the Google search engine of contests,” said Spriza’s CEO, Rob Danard, adding the Company which launched in May, 2014 has consolidated contests into one central portal. “How we distribute contests is very similar to how Pinterest or Flipboard displays their content.

 

Information on the pump is below:

I first received an email promoting SPRZ on February 9, 2015 from Marketing@insiderwealthalert.com and linking to the online promotion page http://streetreview.com/leading-social-networking-company-spriza-sprz-attracts-millions-of-users-with-innovative-search-technology/

Disclosed budget: $175,000
Promoter:  Streetreview.com / Financial Times Publishing Corp, Ltd
Paying party:  ?
Shares outstanding: 67,618,934
Previous closing price (day prior to trading suspension): $1.19
Market capitalization: $80 million

 

SPRZ 2015-3-20 sprz_chart

Excerpt from disclaimer:

StreetReview.com (“SR”) is owned and operated by Financial Times Publishing Corp, Ltd.

SR and its affiliates have received or expects to receive and manage a total advertising budget of one hundred and seventy five thousand dollars for publishing this advertisement.

Full disclaimer:

Disclosure: These online reports, videos and other content on streetreveiw.com should be viewed as a paid advertisement (“content”). By viewing the content you agree and understand StreetReview.com (“SR”) is owned and operated by Financial Times Publishing Corp, Ltd. who is a publisher of financial news and opinions and not a securities broker/dealer or registered investment advisor. SR does not purport to provide any analysis of any published company’s or their financial position, operations or prospects and the information is often incomplete and should not to be construed as a recommendation of an offer or solicitation to buy or sell a security. While information contained in this advertisement is believed to be reliable, SR and its affiliates make no warranties as to the accuracy of any of the content herein and accept no liability for how readers may choose to utilize the opinions of SR. Further the reader agrees to indemnity SR to the fullest extent of the law in such reliance. It would be prudent for each reader to perform in-depth due diligence, including consulting with a licensed, qualified investment professional or analyst. Also independently verify all statements made in any special reports or other content. SR and its affiliates have received or expects to receive and manage a total advertising budget of one hundred and seventy five thousand dollars for publishing this advertisement. For more information about covered companies readers should complete their independent due diligence at the Securities and Exchange Commission website www.sec.gov and www.finra.org. 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 and should not be perused unless the investor is prepared to loose their entire investment. The information contained herein contains forward-looking information within 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 advertised company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, The Company and its affiliates note that statements contained herein that look forward in time, which include everything 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 the size and growth of the market, the Company’s ability to fund its capital requirements in the near term and in the long term; regulatory, pricing pressures, technology issues and much more. Got to sec.gov for more information.

PDF copy of promotion page

Disclaimer: I have no position in any stock mentioned. I have no relationship with any parties 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.

Mar 20

SEC Suspends trading in recent pump ChitrChatr $CHICF

This morning prior to the market open the SEC suspended trading in recent online landing page pump and dump ChitrChatr (CHICF). ChitrChatr never got much volume which is why I had not previously blogged about the pump. Trading will resume at the market open on Friday, April 3rd.

SEC Suspension notice (PDF)
SEC Suspension order (PDF)

The reason given for the trading suspension:

The Commission temporarily suspended trading in CHICF due to questions regarding recent volatile trading activity and questions regarding the adequacy and accuracy of information in a company press release dated January 21, 2015 relating to the company’s financing and the source of that financing.

The SEC acknowledges the assistance of the Alberta Securities Commission and of FINRA in this matter.

CHICF received a cease trade order (CTO) from the Alberta Securities Commission on March 11th).

You can read the January 21st press release.

Information on the pump is below:

CHICF was first promoted back in April and May of 2014 and started getting repumped beginning on January 22nd, 2015. The landing page promoting CHICF is at http://www.yoursmarttrade.com/chicf.htmlCHICF_chart

Disclosed budget: not disclosed ($5,000 to Intelligent Investor Report)
Promoter:  Intelligent Investor Report
Paying party:  TLC Communications
Shares outstanding: 31,450,000
Previous closing price: $1.88
Market capitalization: $59 million

 

 

Excerpt from disclaimer:

Intelligent Investor Report and TLC Communications (TLC) have used outside research and writers using public information to create the advertisement coming from (Intelligent Investor Report) about CHICF.

Intelligent Investor Report is paid five thousand dollars as an editorial fee from TLC and also expects to receive new subscriber as a result of this advertising effort

Full disclaimer:

CHICF_disclaimer

PDF copy of promotion page

Disclaimer: I have no position in any stock mentioned. I have no relationship with any parties 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.

Mar 19

Petroterra $PTRA is the new landing page pump and dump

This morning I received an email from email@investorsalley.messages4.com (an email list to which I subscribed) promoting Petroterra Corp (PTRA). Judging by the stock’s volume,this pump has begun only in the last week. The email links to an online promotional website: http://petroterracorpreports.com/

 

buy-alert-landing

 

Disclosed budget: not disclosed ($5,000 to James Rapholz)
Promoter:  James Rapholz dba Economic Advice
Paying party:  Mass Peak Ltd
Shares outstanding: 65,626,364
Previous closing price: $1.00
Market capitalization: $65 million

 

Excerpt from disclaimer:

The publisher, James Rapholz dba Economic Advice, understands that in an effort to enhance public awareness of PetroTerra Corp. and its securities through the distribution of this advertisement, Mass Peak Ltd. paid all of the costs associated with creating, printing and distribution of this advertisement. The publisher was paid the sum of $5000 for his contributions.

Full disclaimer:

MPORTANT NOTICE AND DISCLAIMER: This stock profile should be viewed as a paid advertisement. The publisher, James Rapholz dba Economic Advice, understands that in an effort to enhance public awareness of PetroTerra Corp. and its securities through the distribution of this advertisement, Mass Peak Ltd. paid all of the costs associated with creating, printing and distribution of this advertisement. The publisher was paid the sum of $5000 for his contributions. If successful, this advertisement will increase investor and market awareness, which may result in increased numbers of shareholders owning and trading the common stock of PetroTerra Corp. , increased trading volumes, and possibly increased share price of the common stock of PetroTerra Corp. The publisher has not undertaken to determine if Mass Peak Ltd. is, or intends to be in the future, directly or indirectly, a shareholder of PetroTerra Corp. The publisher may receive revenue, the amount of which cannot be determined to any degree of certainty, as a result of this advertising effort and the accompanying subscription offer. This publication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. This publication, its publisher, and its editor do not purport to provide a complete analysis of any company’s financial position. The publisher and editor are not, and do not purport to be, broker-dealers or registered investment advisors. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC filings. Investing in securities, particularly micro cap securities such as PetroTerra Corp., is speculative and carries a high degree of risk. Past performance does not guarantee future results. This publication is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the publisher cannot guarantee the accuracy or completeness of the information. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured company and/or industry. The publisher notes that statements contained herein that look forward in time, which include everything 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 the size and growth of the market for the company’s products and services, the ultimate degree of success in the company’s drilling excursions, the company’s ability to fund its capital requirements in the near term and long term, pricing pressures, etc. Economic Advice is a trademark of James Rapholz. All other trademarks used in this publication are the property of their respective trademark holders. Economic Advice and James Rapholz 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 Economic Advice or James Rapholz to any rights in any third-party trademarks.

PDF copy of landing page

 

ptra

Disclaimer: I have no position in PTRA and will not trade it unless it gets significantly higher volume. I have no relationship with any parties 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.

Mar 17

GroGenesis Inc $GROG gets a landing page promotion

GroGenesis (GROG) has been promoted since at least March 5th, 2015. That morning I received my first promotional email about the company that linked to the online promotion website http://freegrogreport.com/

Since the 5th I have received no more emails and volume in the stock has steadily decreased.

grog_call

 

Disclosed budget: $150,000 (per week)
Promoter:  Kingsborough Publishing and Tim Fields / Untapped Wealth
Paying party: Aspen Agency LTD
Shares outstanding: 81,430,000
Previous closing price: $0.82
Market capitalization: $66 million

 

Excerpt from disclaimer:

Grogenesis,(GROG),the company featured in this issue, appears as paid advertising, paid by Aspen Agency LTD to provide public awareness for GROG. Aspen Agency LTD has approved and signed off as “approved for public dissemination” all statements made herein regarding GROG’s history, assets, technologies, current as well as prospective business operations and industry information. Untapped Wealth and Kingsborough Publishing (KP) have used outside research and writers using public information to create the advertisement coming from Untapped Wealth about GROG.

KP has received and managed a total production budget of up to $150,000 per week for this advertising effort 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. Untapped Wealth is paid $5,000 as an editorial fee from KP and also expects to receive new subscriber revenue as a result of this advertising effort.

Full disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This featured company sponsored advertising issue of Untapped Wealth does not purport to provide an analysis of any company’s financial position, operations or prospects and this is not to beconstrued as a recommendation by Untapped Wealth or an offer or solicitation to buy or sell any security. Grogenesis,(GROG),the company featured in this issue, appears as paid advertising, paid by Aspen Agency LTD to provide public awareness for GROG. Aspen Agency LTD has approved and signed off as “approved for public dissemination” all statements made herein regarding GROG’s history, assets, technologies, current as well as prospective business operations and industry information. Untapped Wealth and Kingsborough Publishing (KP) have used outside research and writers using public information to create the advertisement coming from Untapped Wealth about GROG. Although the information contained in this advertisement is believed to be reliable, Untapped Wealth and KP makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize the content. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. Untapped Wealth 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. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://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 information filed with state securities regulators and many will supply investors with additional information on request. KP has received and managed a total production budget of up to $150,000 per week for this advertising effort 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. Untapped Wealth is paid $5,000 as an editorial fee from KP and also expects to receive new subscriber revenue as a result of this advertising effort. *More information can be received from GROG’s investor relations firm.Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like GROG, advice to investors and other investor resources are available at the Securities and Exchange Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with 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 new companies with limited operations and no history of earnings. The information contained herein contains forward-looking information within 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 accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, GROG notes that statements contained herein that look forward in time, which include everything 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 the size and growth of the market, the Company’s ability to fund its capital requirements in the near term and in the long term; pricing pressures, technology issues etc

PDF copy of landing page

 

grog

Disclaimer: I have no position in GROG and will not trade it unless it gets significantly higher volume. I have no relationship with any parties 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.

Mar 17

Tobin Smith pumps Greenhouse Solutions $GRSU

This morning I received an email from email@investorsalley.messages4.com advertising Greenhouse Solutions (GRSU) as a new Tobin Smith promotion and linking to the promotion website http://stockreportsnow.com/index.html

Considering how poorly pumps have done over the last year and how few big pumps there have been, I think it highly unlikely that the stock will go up, although I would want it to attract significantly higher volume before I short.

tobingrsu_tobin

tobin3

 

Disclosed budget: $250,000
Promoter:  Investor Awareness Advisors and Tobin Smith / NBT Equities Research
Paying party: Spring Computing Technologies PVT Ltd
Shares outstanding: 86,760,000
Previous closing price: $0.48
Market capitalization: $41 million

 

Excerpt from disclaimer:

 

Greenhouse Solutions Inc., (GRSU), the company featured in this issue, appears as paid advertising by Spring Computing Technologies PVT Ltd. to provide public awareness for GRSU.

Investor Awareness Advisors has managed a total production budget of up to $250,000 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, the publisher is paid $20,000 as an editorial fee from Investor Awareness Advisors and also expects to receive new subscriber revenue as a result of this advertising effort.

Full disclaimer:

IMPORTANT NOTICE AND DISCLAIMER: This advertising issue of Tobin Smith and NBT Equities Research Inc., the publisher, 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 or an offer or solicitation to buy or sell any security. Greenhouse Solutions Inc., (GRSU), the company featured in this issue, appears as paid advertising by Spring Computing Technologies PVT Ltd. to provide public awareness for GRSU. The publisher has used outside research and writers using public information to create the advertisement Tobin Smith and NBT Equities Research Inc. about GRSU. Although the information contained in this advertisement is believed to be reliable, NBT Equities Research and Tobin Smith and NBT Group, Inc. makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize the content. All commodity, stock prices and theoretical projections were current as of the writing of this advertisement. Prices and projections may not be current as of the dissemination of this advertisement. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. GRSU 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. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://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 information filed with state securities regulators and many will supply investors with additional information on request. Investor Awareness Advisors has managed a total production budget of up to $250,000 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, the publisher is paid $20,000 as an editorial fee from Investor Awareness Advisors and also expects to receive new subscriber revenue as a result of this advertising effort. *More information can be received from http://www.greenhousesolutionsinc.com. Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like GRSU. Advice to investors and other investor resources are available at the Securities and Exchange Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with 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 new companies with limited operations and no history of earnings. The information contained herein contains forward-looking Information within 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 accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, GRSU notes that statements contained herein that look forward in time, which include everything 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 the size and growth.

PDF copy of landing page

grsu

 

Disclaimer: I have no position in GRSU and will not trade it unless it gets significantly higher volume. I have no relationship with any parties 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.

Mar 12

How to make almost $30,000 in under 30 minutes of market time

Lots of people want to know the details on this trade I had on Telupay (TLPY):

The short answer is quite simple: TLPY was announced as the new Stocktips.com stock promotion Friday at 3:43pm. I was one of the very first to receive the promotional emails and Stocktips is currently the most effective stock promoter around (I would never buy most stock promotions — they are only good for shorting) so it was all but certain that the stock would spike, at least for the first 15 minutes or so. (If you sign up for Stocktips or any other promoter, do not ever pay them for anything — just get on their free email list. And never believe what they write — they are scheming scoundrels and pumped stocks inevitably dump big.)

There was a large element of luck to the trade in that sometimes I may be early to receive the emails and other times I may be late — any stock promoter with a big email list will have to use an email service or program to manage their email list and send the emails (in StockTips case it is Aweber). By necessity with a large email list the emails can’t be sent simultaneously so it can take a few minutes to send all of them.

So, knowing that lots of people would be trying to buy TLPY over the next 17 minutes it was an easy decision to buy and buy a lot of shares. Frankly, it was not my intention to take as large a position as I did, but with OTC stocks it is hard to get orders filled so in a situation like this where I expect the stock to quickly spike I put in as many orders as I can and I route those orders to different market makers to increase my chances of getting filled. I also alerted in TimAlerts chat that StockTips had just pumped TLPY:


MichaelGoode

TLPY stocktips pump

Posted Mar 06, 3:43 PM

In this case almost all my orders filled and I ended up long 355,000 shares at about $0.16. I sold 85,500 prior to the close (at an average price of $0.216) and held the rest over the weekend, selling them into the predictable gap up on Monday at an average price of $0.252. (I traded around this initial position a lot, which is why my position size on the Profit.ly trade is so large; my position was never larger than 355,000 shares though.) The initial spike when an effective stock promoter promotes a new stock is by far the most predictable part of the promotion which is why I sold into the gap up — sometimes a stock will drop big after I sell like TLPY did but sometimes it will keep going up. But my goal is to make the easy, low-risk money.

While luck plays a part in trading, and I was certainly lucky to get the email early and get good fills, it is because I know Stocktips pumps well that I was able to send lots of buy orders without hesitation. It is because I am experienced at trading OTC stocks, had hot keys set up to send my orders quickly, and knew where to route my orders that my orders were filled.

While pump and dumps overall are less common and less successful now than they were a couple years ago there are still plenty of opportunities to make money trading them (especially by shorting). If you do trade TLPY or any other pump, just be aware of the risk of SEC trading suspensions (why I never hold a long position overnight after the first day of the pump) and remind yourself that these companies are worthless and will eventually drop big. Here, for example, is a chart of the prior Stocktips pump, ECRY:

ecry

 

Disclaimer: I have no net position in TLPY although I will likely trade it (short and long) after this is published. I have no relationship with any parties 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.

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