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.
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”
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
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.