How to trade the upcoming Doubling Stocks pump & dump

Doubling Stocks (along with a number of other stock promoters) pulled off one of the best pump & dumps of the year back in May by pumping UOMO Media Inc. (OTC: UOMO). The pump sent the stock from $0.35 to $1.00 in one day. I was too afraid to make money buying it (I actually bought it in the pre-market on the pump day but sold right after the open … a few minutes later it rose like a rocket), but I did make some money short selling it. All told, I made over $1,100 on it.

Of course, by being unethical losers, Michael Cohen and crew at Doubling Stocks made far more than that. They received only a measly $50,000 from a third party to pump the stock, but they bought 400,000 shares prior to the pump that they then sold into the pump. Tim Sykes had a good post on the pump where he copied the full disclaimer. A very conservative estimate of Doubling Stocks’ trading profit would be $140,000, if they bought at $0.35 and sold at $0.70. A more likely average buy price would be $0.25 as they probably bought over a week or two prior to the pump, with an average sell price right near the top of the pump at $0.90. If that was the case, then they made about $260,000.

uomo

Michael Cohen of Doubling stocks has been sending out emails about his forthcoming pump, which will come on October 30. Here is his description of his previous pump:

About 5 months ago, before
my last stock pick I said:

“If this stock doesn’t triple
within 48 hours I’ll RETIRE
as a stock picker”

What happened?

The stock rocketed from $0.35
to $1.06 in under 48 hours!

But this time he writes that the stock will take a lot longer to rise:

However, this time… I believe my
new pick will steadily climb to
its peak over a span of 14 to 21
days.

What does that mean? Of course, I cannot know for certain, but I bet that means that he is going to gradually sell his holdings into the pump to make sure that it rises slowly. Or, he could be getting paid a lot of money for the pump and whomever is paying him is planning on dumping a huge number of shares into the market, keeping the stock from rising much. If he gets paid enough money for this pump he won’t care if the stock goes up or not. He’ll be happy to screw his followers, because he can always build another pump and dump site. Such is what happened to StockPreacher last summer. No matter what, the risk of going long a pump such as this is high and I will likely not look to buy it. I will, however, look to short it aggressively, something I did not do last time.

Disclosure: No positions. I have a disclosure policy.

0 thoughts on “How to trade the upcoming Doubling Stocks pump & dump”

  1. Ya sometimes you have to listen to what to stock promoter is tell you as sometimes when they know a massive ammount of buying is going to occur due to some inside buying that is going to occur. I looked through my email and found something interesting.

    On 9/7/2009 Monsterstox.com sent me a newsletter claiming that if thier next pick was not their best pick ever that they would retire. here is the newsletter.

    Hi All,

    Our special stock pick is GVBP.

    As mentioned yesterday, if this pick doesn’t do well, I will RETIRE as a stock picker!

    I am very confident that GVBP could be a HUGE winner for everyone and you will see why below.

    GVBP has been trending up in the last couple of days and I believe that this is only the start of something ENORMOUS!

    GVBP is charting up like a stock that could keep on running.

    CTIC recently moved from 5 cents to over $1.50! A gain of over 2000%!

    GVBP could be the next bio stock to go crazy!

    Like they say on Wall Street: “The Trend is Your Friend!”

    Yup you guessed it their pick was GVBP which we all know was a huge pump going all the way to $1.20 before opening today at .01. So maybe their is some pattern to the stock promoters when they start make these wild statements.

  2. TWMC looks good long with a break of 1.45 or so, short if it can’t break or green/red..
    FSII has broke some resistance and could run higher, short on green/red action.
    DDSS has a messy chart, short green/red. Long on the break of 2 if it can get there.
    ZMTP, fun to watch.

    1. TWMC still in business? Wow … they should be BK by now. They own FYE and Sam Goody stores. Not a bad breakout, but I’d still be short-biased.
      FSII not bad.
      DDSS resistance all over
      ZMTP not even worth watching, no way to trade it, but crazy.

  3. I know it’s a gold play but TLR broke some key resistance today, will watch tomorrow for more strength. I wouldn’t short, but going long may not be bad.

  4. For what it’s worth:
    I am tracking in Covestor now (still not sure *what* it is showing – maybe more days of data will help?)
    Name: MostlyLucid
    I am still short in MNKD at 6.17 going into tomorrow – this shorting makes for *tense* days!
    — not looking good for them. Crammer tonight dissed em (take that with a grain of salt)

    There was a number of times today I was up but holding out for more. Time will tell if that was a good move or not!

    Good luck to everybody tomorrow —

  5. hey Reaper, how come you didn’t buy the VG breakout today…according to Tim it was the easiest play and some follower of his bought 28,000 shares of it….they are making you look bad my friend ….

    😉

  6. I don’t see nothing great for pre-market this morning, DDSS is above 2 but your right about resistance. Key resistance is 2.50ish, if it can break that it might run.

  7. Great commentary, I sometimes forget to check the comments there, for no reason either because there are some very good comments there most times.

    Look at CLWT for a morning panick sell off, maybe a good play.

  8. Hey I kept thinking about what could cause this to go up so slowly. What if he doesn’t release the pick to his whole list at once and does it gradually. What date did you get for the pump?

    1. from above: “Michael Cohen of Doubling stocks has been sending out emails about his forthcoming pump, which will come on October 30.”

      I don’t think that could work, because it would get out. If he started pumping it with a bunch of lesser-known sites that could work, but then he couldn’t brag about it tripling from when he started the doubling stocks pump.

  9. That’s weird because the date I have for the pump is October 27…. That and doublestocks dot com now redirects to daytradingrobot dot com and it looks like its run by Jason Kelly not Michael Cohen.

    Yeah I thought about that, but I’m not sure if that’s not the case… Are you still getting emails from Micheal Cohen or Jason Kelly…

    1. Got an email a day or two ago from Michael Cohen. Doubling stocks has always been linked with the day trading robot. Do Cohen or Kelly really even exist?

      The date difference, now that is very interesting. We’ll just have to share the pick here whoever gets it first!

  10. Never thought about it like that… yeah I can post the pick whenever I get it, since my date appears to be the earliest Oct 27.

    What I’m trying to figure out is how they are going to be able to “know” or even assume they could cause the price to rise over 15 to 21 days. They can’t controll how many people will buy or sell, even if they distrobute their list how can they be sure. I’m still thinking there will be a pretty big spike. What do you think?

    1. If they really want to get a sustained rise, they could use matched trades to drive it slowly up. That is blatantly illegal, though. So yeah, I am still expecting a quick spike too.

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