Arch Therapeutics $ARTH pump and dump

I first heard about Arch Therapeutics from Tom McCarthy of Prepromotion Stocks and then purchased it after a few big block trades. Tim Sykes ended up buying it the next day and following the increased volume the stock tanked fast and far, likely because the promoters wanted to scare out speculators as the promotion had not apparently started yet. I made some money buying early and selling after Sykes bought but I bought back some shares after it dipped a little (to $0.77 from about $0.82) and then as it dumped I tripled my position by buying at $0.61 and $0.495 before selling most of my shares in the high $0.60s and low $0.70s. Below are my trades on ARTH:

 

 

 

 

 

 

The pump page was posted briefly at ARTHReport.com at the end of last week but it has since been taken down. Even at the time it was posted there was no disclaimer. Here is a PDF copy of the website that was up. Below is a screenshot:

 

[Edit 2013-7-7]: The ARTH pump page has been re-uploaded. See it at ArthReport.com. It is now complete and includes a disclaimer. See the PDF copy of the pump page

ParagonReport.com / BedfordReport.com / FiveStarEquities.com have a new pump at the open on Monday July 8th and it will very likely be ARTH.

 

Disclosed budget: $790,000

Promoter: Ian Cooper & Full Service Media LLC

Paying party: Advantage Media Corp

Shares outstanding:  66,330,000
Previous closing price: $0.905 (day prior to this blog post; when post was updated on 7/7/2013 the previous close was at $0.91)
Market capitalization: $60 million

Excerpt from disclaimer:

Ian Cooper has been compensated $10,000 by Advantage Media Group for endorsing this product, and Market Authority has been paid a $25,000 by Advantage Media Group for sending out this advertisement.

…

Advantage Media Corp., the third party advertiser, has paid $390,000 USD and is expected to pay an additional $400,000 to Full Service Media, LLC (FSM) as of June 20, 2013 for this advertising effort in an effort to build investor awareness. FSM shall retain any amounts over and above the cost of creating and distributing this email advertisement which advertises Ian Cooper’s Speed Retirement System Newsletter coverage of Arch Therapeutics, Inc.,

,,,

Advantage Media Corp., the third party advertiser, is a company based in Belize City, Belize. Advantage Media Corp. represents that it does not own any shares of Arch Therapeutics, Inc. (except for 2,500,000 shares of restricted stock) which Advantage Media Corp. will not sell, pledge or hypothecate or otherwise agree to dispose of for 90 days following the initial dissemination of this advertisement. Neither Advantage Media Corp., nor its affiliates will buy or sell any shares of Arch Therapeutics, Inc. during the period that this advertisement is being disseminated by FSM third party media vendors.

 

 

Full disclaimer:

Endorser/Publisher IMPORTANT NOTICE AND DISCLAIMER: Market Authority, Inc., and Ian Cooper expect to receive future subscription revenues, the amount of which is not known at this time, with respect to the publication of this Advertisement. No representation is made that actual purchases and sales were made at any prices that may be stated herein. Facts stated in this article were supplied to endorser from third-party sources. Ian Cooper has been compensated $10,000 by Advantage Media Group for endorsing this product, and Market Authority has been paid a $25,000 by Advantage Media Group for sending out this advertisement. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. MARKET AUTHORITY AND ENDORSER OWN NO SHARES, OPTIONS, OR WARRANTS in the security that is the subject of this advertisement, and Company policies are in place that preclude such ownership. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should verify by their own independent research all of the claims made in this advertisement. Neither Market Authority nor any endorser of this product is responsible for errors or omissions. Neither Market Authority nor Endorser claim any special expertise or knowledge regarding the described industry. Endorser has not taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. Be extremely careful, because investing in securities carries a high degree of risk; you have a very real risk of losing some or all of the investment, or not making the profit from you investment that you expect. The advertised company’s financial position and all other information regarding the company should be independently verified directly with the company, which is the best source of comprehensive information. Additional information about many publicly traded companies and other investor resources can be found at the Securities and Exchange Commission’s website at www.sec.gov. The price and value of the securities mentioned in the endorsement can fall as well as rise, and may have a high level of volatility. High volatility securities may experience sudden and large falls in their value, leading to losses. High volatility investments may also be difficult to sell. Investing in securities is speculative and carries risk, including the risk of losing your original investment. It is recommended that any investment in any security should be made only after consulting with your investment advisor and only after reviewing all publicly available information, including the financial statements of the company. This mailing piece is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy securities, nor should it be construed as the provision of any investment-related advice or services tailored to any particular individual’s financial situation or investment objective(s). Market Authority, Inc. is not an investment advisor, nor does it offer brokerage services. Your decision to make the investments represented in this advertisement may benefit the company through continued advertising revenue and subscriptions, but Market Authority does not earn or accept any commission directly from the companies described in any of its promotional materials. Market Authority and the publisher of this newsletter are independent companies offering impersonalized investment-related research to readers and/or prospective readers and is not an investment adviser. As such, it relies upon the “publisher’s exclusion “as provided under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. All information we present is to be reliable, but its accuracy cannot be guaranteed. Additionally, it includes forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected growth of the featured company. Any statements that express or involve discussions with respect to predictions, expectation, beliefs, plans, projections, objectives, goods, assumptions or future events or performance may be forward-looking statements. The forward-looking statements contained herein (which include all statements other than historical information) involve significant uncertainties. Factors that could cause actual results to differ from the results or implied in forward-looking statements include: the size and growth of the market for the Company’s products, the Company’s ability to fund its capital requirements in the near term and in the long term, pricing pressures for the Company’s products and services, the Company’s ability to obtain needed resources, and the local, regional and global markets. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those presently anticipated. Past performance does not guarantee future results. There is no guarantee that past results are indicative of future performance.

Third Party Advertiser/Advertising Agency IMPORTANT NOTICE AND DISCLAIMER: Advantage Media Corp., the third party advertiser, has paid $390,000 USD and is expected to pay an additional $400,000 to Full Service Media, LLC (FSM) as of June 20, 2013 for this advertising effort in an effort to build investor awareness. FSM shall retain any amounts over and above the cost of creating and distributing this email advertisement which advertises Ian Cooper’s Speed Retirement System Newsletter coverage of Arch Therapeutics, Inc., Advertising services include; production, outsourced advertising design services, online mailing and other related distribution services and digital advertising media placement costs. Advantage Media Corp., the third party advertiser, is a company based in Belize City, Belize. Advantage Media Corp. represents that it does not own any shares of Arch Therapeutics, Inc. (except for 2,500,000 shares of restricted stock) which Advantage Media Corp. will not sell, pledge or hypothecate or otherwise agree to dispose of for 90 days following the initial dissemination of this advertisement. Neither Advantage Media Corp., nor its affiliates will buy or sell any shares of Arch Therapeutics, Inc. during the period that this advertisement is being disseminated by FSM third party media vendors. This is sponsored advertising and does not purport to provide an analysis of the featured company’s financial position, operations or prospects and is not to be construed as a recommendation or solicitation by FSM to buy or sell any security. FSM is a firm which refers and facilitates the services of third-party vendors and advertising related service providers to persons wishing to sponsor advertising featuring publicly-traded companies. FSM is not a financial analyst, investment advisor or broker/dealer. The services provided by FSM in connection with this advertisement are limited to the digital design of ad copy, the renting of distribution list(s), and managing the production and distribution of this advertisement. FSM is not responsible for the endorsement of this advertisement, which is the sole responsibility of Ian Cooper’s Speed Retirement System Newsletter. Ian Cooper’s Speed Retirement System Newsletter expects to generate new subscriber revenue as a result of this advertising effort. Neither FSM nor its members have an ownership interest in Ian Cooper’s Speed Retirement System Newsletter or any of its affiliates, and neither Ian Cooper’s Speed Retirement System Newsletter nor its affiliates have an equity interest in FSM. Neither FSM nor its members will trade in the securities of Arch Therapeutics, Inc. FSM makes no warranties as to the accuracy of the content of this advertisement and expressly disclaims and assumes no liability for how readers may choose to utilize the content of this advertisement. Readers are strongly urged to independently verify all statements made in this advertisement and to perform their own due diligence on this or any other advertised company, including but not limited to consulting with a qualified investment professional and reviewing the publicly available financial statements of, and other information about Arch Therapeutics, Inc. You should also determine that an investment in Arch Therapeutics, Inc. company is appropriate and suitable for you. Arch Therapeutics, Inc. is traded on the OTCQB (trading symbol: ARTH). Its stock is registered under the Securities Act of 1933, as amended, and its periodic and other reports filed under the Securities Exchange Act of 1934, as amended, are publicly available from the Securities and Exchange Commission at its website at http://www.sec.gov. This website also contains general investor information about publicly-traded companies, advice to investors and other investor resources. Other investor resources are available from the Financial Industry Regulatory Authority through its website at http://www.finra.org. Many states have established rules requiring approval by the state securities administrator to permit sales of a security to its residents. Check with the North American Securities Administrators Association through its website at http://www.nasaa.org or call your state securities administrator to determine whether a particular security may be purchased by you as a resident of your state. Many companies have filed information with state securities regulators and many companies will supply prospective investors with additional information upon request. Investing in securities is highly speculative and carries a great deal of risk, especially as to newer companies with comparatively short operating histories and limited earnings This advertisement contains forward-looking statements regarding Arch Therapeutics, Inc. its business and prospects. Such forward-looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions created by these laws. This advertisement may provide the addresses of or contain hyperlinks to outside or third-party websites, FSM has not reviewed any such websites and takes no responsibility for the contents thereof or any possible effects resulting from accessing any such websites. The contents of any such websites do not in any way constitute a part of this advertisement. Accessing such websites or following any link shall be at your own risk.

 

Intraday 1-minute chart of ARTH big drop (click image to view full-size):

 

[Edit 2013-7-9]: @TMcNasty received a hard mailer promoting ARTH and tweeted pictures of it yesterday. See his tweets about the disclaimer and the front page. Images of the disclaimer and the first three pages of the mailer are below (click to enlarge):

 

Also, Ian Cooper’s most recent promotion was of BLGX. The landing page for that pump is here: http://www.stockofthedecade.com/. See the PDF copy of that page. BLGX never got much volume so it is hard to say exactly when the pump started. Here is its chart:

 

 

Disclaimer: [Update 2013-7-9 I am long 3,200 shares of ARTH that I may sell at any time] I have no position in any stock mentioned above and no relationship with Ian Cooper. I am a subscriber to PrePromotionStocks.com and I have an involved business relationship with Tim Sykes (see my terms of use for details). 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.