Brazil Minerals (OTCBB: BMIX) Tobin Smith hard mailer pump and dump

Yesterday during the trading day I saw a subscriber of Tom McCarthy’s Prepromotion Stocks service alert in chat that he had received a hard mailer from Tobin Smith promoting Brazil Minerals (OTCBB: BMIX).

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Wife just texted me..got hard mailer for BMIX from NBT Equities…Tobin Smith

Posted May 15, 3:00 PM

I bought 7,500 shares at $0.724 and I still hold those shares (I will sell them soon, possibly as soon as tomorrow’s open). After the market close a TimAlerts subscriber reported that he had also received the mailer. I tweeted about that and a few minutes after I tweeted, Peter Pan (a popular penny stock trader on Twitter that I do not follow) tweeted that he had received the mailer and he uploaded a picture:bmix (1)

As of the time I post this I have not seen anyone post a picture of the disclaimer, although multiple people have said that the budget is disclosed as $1.6m (of course all promotion budgets should be taken with a few kilos of salt).

Disclosed budget: $1,600,000

Promoter: NBT Equities Research / Tobin Smith

Paying party: ???

Shares outstanding: 69,963,463
Previous closing price: $0.87
Market capitalization: $60 million

 

Interestingly, Tobin Smith first promoted BMIX back on May 6th via email and on his website at http://www.nbtequitiesresearch.com/sites/default/files/uploads/InitiatingCoverageBrazilMinerals1.pdf but the stock did not get much volume until yesterday.

NBT Equities / Tobin Smith Disclaimer excerpt:

NBT Equities Research has received $40,000 compensation from LB Ventures, a third party shareholder for coverage.

 

bmix

 

Disclaimer: I am long 7500 shares of BMIX that I intend to sell within the next day or two; 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.

13 thoughts on “Brazil Minerals (OTCBB: BMIX) Tobin Smith hard mailer pump and dump”

  1. Well I sold all but 900 shares at .87 and .85 as it started dropping this morning, then bought back 3100 at .531 and sold 4k at .6199. Today’s dump is a good example of why you should always pay attention if you are long a pump.

  2. How do you determine that a reversal is coming in a P&D stock… usually the level 2 is wash trades between the promoters and it seems price moves independently of level 2 …. do u rely on 1 min candles to determine entry and exit points?

    1. I use level 2 but follow the price action — it gapped up weakly this morning and then went sideways and started fading. It should have dipped only a few cents and stayed above yesterday’s close. So I sold well, even though I had no idea it would drop as much as it did.

  3. do you think that this is over? BMIX, or are they just taking the promotion costs back,”hare mailer etc”.

    1. The pump is most certainly not over. Of course that is a very different question than whether the stock will go up. I think BMIX will bounce more but I am not confident enough to have a position in the stock at this time.

  4. i am 18000 shares in at a average of .715, has tobin ever started a pump and it never took off, even with hard mailers?

    1. Tobin Smith is less important than the company insiders that paid him. It is rare for a pump to drop like that so early and not recover, but it does happen from time to time. I suggest trading based on the price action. The absolute worst thing to do is hold and hope — even if you have reason for hope. A pumper could put out a ton of successful pumps and then have a dud (like SmallCap Fortunes on AVVC a couple years ago — a lot of pump buyers lost big on that one).

  5. I have heard that people have received electronic copies of the BMIX pump. However, I don’t know of anybody who has personally seen a hard mailer. Have you personally seen a hard mailer? Thank you.

    1. I get what you call “hard mailers” all the time, full of exclamation points, underscores and bold print throughout, promising ridiculous returns. They are almost cartoonish, typically brash crass American-style overkill, but designed for the totally unwary. To me, their arrival in my mailbox is a veritable guarantee that a stock is a cheap otherwise unsupportable flash in the pan and is going directly into the toilet. It almost never fails. But I am quite disturbed that this Tobin Smith character’s face and name seems to be associated with so many of them lately. Are people like this simply allowed to endorse things like this, make a personal killing, and leave naive investors (thankfully I am not one of them and never bite at these offers) high and dry? It makes me angry now when I think about him and his little group of similar types yucking it up on weekend stock picker shows on news channels while unwary people are being raped and scalped of their money. It seems to me this is capitalism at its worst. Is there no shame with these people? No conscience? I’m increasingly disgusted by this.

      1. Yeah Tobin Smith is the worst because he has actually appeared on CNBC. There are others like him too. Most of the promoters who lend their name or image to these mailers have absolutely no reputation and their only job is to promote. Anyone who does something like this should never be allowed near a TV Camera. Has Tobin Smith appeared on TV recently? I don’t follow financial TV so I don’t know if he still comes on or if he only used to be a TV talking head.

  6. I got the Tobin smith hard mailer of BMIX in the mail trading at .25 now. And also got Tobin Smiths Petrosonic Energy and Western Graphite hard mailer. Didn’t start getting these in the mail until i opened an account with Scott Trade

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