The website Pumpsanddumps.com has been around for awhile, chronicling various stock promotions (although they haven’t posted in a month). I have subscribed to its emails since last August. I have not always been impressed with the research, but it was a nice near-daily synopsis of current stock promotions. Last January, the site started carrying advertising from a new trading service, FirstMicrocapReport.com (by Leslie Howard) that looked to buy pumps prior to the stock promotions (similar to the service of PrePromotion Stocks). His service was mostly uninteresting to me; I generally try to avoid illiquid stocks. I was never a fan of Leslie’s alert service, although I remain subscribed because I follow almost anyone who moves penny stocks.
Leslie Howard has attracted the ire of convicted felon Michael Osborn (see George Sharp‘s negative website about him: http://michael-osborn.info/). Osborn, while not by any means a trustworthy guy, has alleged that George Sharp is Leslie Howard and also runs PumpsandDumps.com. [Update 26 October 2012: George Sharp appears to have won his defamation suit against Michael Osborn and AbuseofLaw.org. See the original complaint (pdf) and the notice about the court order on Abuseoflaw.org. It is fair to say that Osborn’s allegations have been completely discredited.]
However, who is behind Leslie Howard’s First Microcap Report is unimportant to me. The important thing is that Leslie Howard is now officially a stock promoter. Last Wednesday, Howard alerted HAIR and for the first time disclosed that he had been paid to promote the stock: “First Microcap Report has been compensated with an initial payment of $15,000 for the profiling of this company.” I guess “Uncle Leslie” decided that becoming a stock promoter was a lot easier than being a trading guru — and I have to agree. It is hard to gross $15,000 a month on a trading alert service.
Experienced penny stock traders know not to trust anyone. But it is always good to point that out for anyone new to the scene.