Santo Mining Corp (OTCBB: SANP) has been the pump and dump of one of the most successful stock promoters (in terms of bringing buying volume to stocks so that insiders can unload tens of millions of shares) over the last 1.5 years. Their websites (detailed below) promoted LEXG, RAYS, and SEFE. Buyers of SANP from the beginning have done poorly, particularly because this stock started at a higher price and with a higher market capitalization than their previous pumps. But as usual, stock promoters like to lie about why promoted stocks go down. They always blame short sellers. Below is a quote from the November 16th email from stockspecialists.com (bold added by me):
Fellow Penny Stock Investor:
SANP – Santo Mining Corp. Ticker (SANP) Last Trade $0.56 This stock is has been getting ass-raped since reaching it’s high on 1.44 on 11/13. In what could be described as measured steps accentuated by block trades setting lower price points, the stock has been cut severely in the three days of trading. We feel that the stock has become a victim of dubious short sellers pressing the security lower in the past three days of trading. The stock is a relatively new issue, and is thus quite susceptible to such nefarious behavior.
As usual, the stock promoters are half correct: investors in SANP have been getting raped. Of course, short sellers have nothing to do with it. There are two reasons, in order of importance: (1) the large shareholders or insiders who paid for the pump have been unloading millions of shares into the increased volume over the last six days and (2) investors and traders who bought in the first days of the pump were selling into the bounce to get out with smaller losses. SANP still has a $36m market cap and while the stock could easily bounce many times over the next couple months, it remains substantially worthless and will likely drop another 90% in the next couple months, just as their previous pumps SEFE and RAYS have dropped (LEXG has continued to drop but dropped more slowly).
RAYS
SEFE
SANP
The websites of the SANP stock promoter that I am familiar with are as follows:
TheStockDetective.com
StockmAuthority.com
SuperStockHunter.com
PennyStockWizard.com
StocksDigest.com
StockSpecialists.com
Disclaimer: No positions in any stocks mentioned. I have no relationship with any parties named 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.
GREAT POST! Keep em coming