Stock Promotions – Page 18

BlueFire Equipment $BLFR search ad pump and dump

Bluefire Equipment (BLFR) is currently being promoted via ads on search engines. Clicking the ad takes you to the company’s investor relations page. The stock is too illiquid for me to be interested in trading it either long or short.

Shares outstanding: 33,947,368

Previous close: $0.61

Market cap: $20 million

PDF copy of company investor relations page.

[Edit 2013-7-12]: BLFR is also being promoted by the website at http://www.financialdigest.info/bfire.html. Thanks to Nodummy from Promotion Stock Secrets for pointing that out to me.

PDF copy of pump page.

Excerpt from disclaimer:

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On June 25, 2013 FinancialDigest.info entered into a 90-day advertising agreement related to the dissemination of information about BlueFire Equipment Corp by a non-affiliated third party for compensation of up to fifty thousand dollars.

Disclaimer: [Edit 2013-7-12: still no position] I have no position in any stock mentioned and 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.

SEC suspends trading in Biozoom $BIZM due to alleged Rule 144 violation

This year has already seen more suspensions by the SEC of actively traded pump and dumps than any year since I started trading them back in 2007. Today’s suspension of Biozoom takes it to the next level though: the stock had only been actively promoted for a month and it was averaging huge dollar volume (for an OTC stock) of over $10 million per day. This is much higher volume than any other promoted stock was doing at the time it was suspended. When the SEC has in past years suspended stocks that were the subject of stock promotions, it was usually long after the initial stock promotion. The reason for this suspension was also quite clear and was different from the normal reasons given by the SEC.

Before looking at the details of the suspension of Biozoom (BIZM), I recap other notable trading suspensions this year (links are to my blog posts on the suspensions):

1 March 2013 – Southern USA Resources (SUSA): This was a mailer promotion that had not collapsed at the time it was suspended.

The Commission temporarily suspended trading in the securities of Southern USA Resources because of questions that have been raised about the accuracy of assertions by Southern USA Resources, and by others, in press releases and other public statements to investors, and in promotional mailers, concerning, among other things: (i) the company’s operations; and (ii) thecompany’s outstanding shares.

8 March 2013 – Endeavor Power Corp. (EDVP): This was an email promotion by various poor promoters the day before the suspension; it had previously been promoted in January by others.

It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Endeavor Power Corp. (“Endeavor Power”), quoted under the ticker symbol EDVP, because of questions regarding the accuracy of assertions in Endeavor Power’s public filings and press releases relating to, among other things, patents.

14 March 2013 – Face Up Entertainment (FUEG): This suspension was likely related to a Department of Justice criminal investigation into death threats made by some people involved in the promotion against one of the promoters.

The Commission temporarily suspended trading in the securities of Face Up because of questions concerning the adequacy and accuracy of publicly available information about Face Up, including, among other things, its financial condition, the control of the company, itsbusiness operations, and trading in its securities.

10 June 2013 – Polar Petroleum (POLR): This hard mailer and email pump lasted for a month and a half before being suspended and it averaged over $1 million in daily dollar volume over that period. The suspension was almost certainly related to the company’s press releases that said more about Exxon’s operations than about Polar Petroleum’s.

The Commission temporarily suspended trading in the securities of Polar because of questions
regarding the accuracy and adequacy of assertions by Polar, and by others, to investors in press
releases and promotional material concerning, among other things, the company’s assets,
operations, and financial condition.

Besides the increased pace of SEC trading suspensions of active stock promotions this year, FINRA also joined the party, halting trading in Eco-Trade Corp (BOPT) for 14 trading days back in April, just a week after the beginning of a disastrous promotion by StockMarketAuthority / StockDectective that saw the stock drop in days from $0.24 to $.05. FINRA has for awhile had the ability to halt trading in OTCBB stocks but to my knowledge this is the first time they used that power. FINRA gave no notice whatsoever nor any explanation

The Biozoom Suspension

SEC press release
Suspension Order

Unlike the previous suspensions this year, the SEC was quite specific in why Biozoom’s stock was suspended:

The Commission is concerned that certain Biozoom affiliates and shareholders may have unjustifiably relied upon Rule 144 of the Securities Act of 1933 (“Securities Act”) and they, Biozoom, and others may be engaged in an unlawful distribution of securities through the OTCBB.

The SEC has a concise but vague description of Rule 144:

Rule 144 provides an exemption and permits the public resale of restricted or control securities if a number of conditions are met, including how long the securities are held, the way in which they are sold, and the amount that can be sold at any one time. But even if you’ve met the conditions of the rule, you can’t sell your restricted securities to the public until you’ve gotten a transfer agent to remove the legend.

The law firm Morrison Foerster at Mofo.com has much better description of Rule 144 and what it means (pdf). I am not a securities lawyer and am certainly not an expert on Rule 144, but the likely cause is that the insiders / control persons selling the shares had to wait 12 months after obtaining the shares before selling them (because Biozoom was listed as a shell company as recently as February 2013). Thanks to nodummy of Promotion Stock Secrets and Janice Shell for pointing this out. If Biozoom had not ever been a shell company then insiders would only have to wait 6 months before selling restricted shares under Rule 144.

I expect to see some litigation releases relating to the allegedly illegal share sales sometime in the coming months. See my previous report on Biozoom (and make sure to check out all the other articles about the company I link to). One interesting thing to note is that while I and others (like Ashraf Eassa writing at SeekingAlpha) have brought up the likelihood that the promotional campaign is being paid for by a shareholder (despite the promoters disclosing no compensation), which would make the promotion illegal, this was not mentioned in the SEC suspension order. I believe that the Rule 144 violation is simply easier and quicker to prove and that in time the SEC will sue the promoters for what I believe to be a false disclosure of no compensation.

A Note on Trading BIZM

I made more than a few thousand dollars buying BIZM and shorting it at various times over the last month. Especially after the POLR suspension I became very cautious especially considering the lack of disclosure of compensation in the BIZM promotional materials. I warned people repeatedly in TimAlerts chat that it was risky to hold BIZM overnight. But I tried to get cute and get out at the best possible price and ended up not fully filling my sell order. Trying to save a few cents per share will likely end up costing me over $3 per share: I bet BIZM opens under $0.50.

MichaelGoode

sell I agree with them but it isn’t news. And I still put the risk of a suspension of BIZM at low. I still refuse to hold long o/n because of that risk though

TimAlerts

Posted Jun 24, 2:47 PM

MichaelGoode

I plan to sell into the next BIZM spike … no matter what I won’t hold o/n although I think it closes strong and gaps up

TimAlerts

Posted Jun 24, 3:17 PM

MichaelGoode

sold BIZXM @ 3.41

TimAlerts

Posted Jun 24, 3:59 PM

MichaelGoode

actually not all my BIZM filled — I waited too long. Still net long 1700 o/n.

TimAlerts

Posted Jun 24, 4:01 PM

[Update 2013-6-27]: See Janice Shell’s article on what the recent rash of SEC trading suspensions means for pumps.

Disclaimer: I am net long 1700 shares of BIZM (long 11,700 shares in one account and short 10,000 shares in another account); I am short 3200 shares of POLR; I have no positions in any other stock mentioned and 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.

Tobin Smith fired by Fox after Chuck Jaffe publicizes Smith’s stock promotion

This should not come as a surprise to readers of this blog. Rather, I just wanted to put links to all relevant articles in a post for future reference.

Chuck Jaffe’s article on MarketWatch that started the brouhaha

Tobin Smith’s response

Media Matters article (Great read)

Past performance of Tobin Smith pumps (at MicrocapClub.com, run by Ian Cassel, who has his own problems)

I have previously written about Tobin Smith’s promotion of Petrosonic Energy (PSON), as well as his promotion of Brazil Minerals (BMIX), and Western Graphite (WSGP).

Disclaimer: I have noposition in any stock mentioned and 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.

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:

$140 profit ARTHLong Stock
batch import Speedtrader through 6/20

SpeedTrader

Posted by MichaelGoode /
http://profit.ly/1Mnbgb

($15)loss ARTHLong Stock
batch import Speedtrader through 6/20

SpeedTrader

Posted by MichaelGoode /
http://profit.ly/1Mnbga

$1,230 profit ARTHLong Stock
batch import Speedtrader through 6/20

SpeedTrader

Posted by MichaelGoode /
http://profit.ly/1MnbgY

$259 profit ARTHLong Stock
batch import Speedtrader through 6/20

SpeedTrader

Posted by MichaelGoode /
http://profit.ly/1MnbgZ

($61)loss ARTHLong Stock
batch import Speedtrader through 6/20

SpeedTrader

Posted by MichaelGoode /
http://profit.ly/1MnbgX

$189 profit ARTHLong Stock
batch import Speedtrader through 6/20

SpeedTrader

Posted by MichaelGoode /
http://profit.ly/1MnbgW

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.

Propell Technologies $PROP pump and dump

I heard from a TimAlerts subscriber in the chat room yesterday evening that he had received a hard mailer promoting Propell Technologies (PROP). I have not independently verified any of the information provided. I will post more information when I find it. Due to the already high market cap and the low volume I doubt this pump will do very well. Hopefully the volume increases and the price spikes so that it becomes a worthwhile short (I hate short selling low-volume pumps).

Disclosed budget: $2,500,000

Promoter: FastMarket Products, Inc

Paying party: Baia Investment group Ltd

Shares outstanding: 134,432,871
Previous closing price: $0.92
Market capitalization: $123 million

Excerpt from disclaimer:

FastMarket Products, Inc has received or expects to receive and manage a total production budget of two million five hundred thousand dollars from Baia Investment group Ltd. for this online advertising effort and will retain any amounts over and above the cost of fifty thousand dollars as an editorial fee

[Edit 2013-6-25]: Thanks to Promotion Stock Secrets for uploading a scan of the PROP mailer. Below is a copy of one of the four pages. Considering the high market cap and ugly and short mailer I consider PROP a great short here.

Disclaimer: I have no position in any stock mentioned above and 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.

SEC suspends trading in iTrackr Systems (IRYS)

Today the SEC suspended trading in iTrackr Systems, Inc. (IRYS) because it has failed to file any statements with the SEC since its 3rd quarter 10-Q filed last November.

SEC press release (PDF)
SEC order (PDF)

From the suspension order:

It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of iTrackr Systems, Inc. (“iTrackr”) because it has not filed a periodic report since it filed its Form 10-Q for the period ending September 30, 2012, filed on November 6, 2012.

The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of iTrackr. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of iTrackr is suspended for the period from 9:30 a.m. EDT, June 18, 2013 through 11:59 p.m. EDT, on July 1, 2013.

iTracker Systems (IRYS) was promoted at the beginning of March 2012 by Blue Wave Advisors LLC (now known as Sherwood Ventures LLC), Market Authority, and Tim Sykes. See my blog post about the promotion. See also Tim Sykes’ blog post about it. Since the promotion the stock has decreased in price from $0.75 to $0.0029, a drop of 99.6%.

(click chart to enlarge)

[Edit 2013-6-23]: The SEC filed a lawsuit against David F. Bahr for promoting IRYS and allegedly paying a kickback to a broker for purchasing IRYS stock. Bahr’s actions came at the end of 2012, long after the promotion by Blue Wave Advisors and Tim Sykes and Market Authority.

Disclaimer: No positions in any stocks mentioned. I made money buying IRYS when the pump was released and selling quickly. I have multiple business relationships with Timothy Sykes — please 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.

SeekingAlpha and other websites being co-opted by paid stock promoters

If you follow my Twitter this would not be news, but I have not previously blogged on this subject. For example, I tweeted about The Motley Fool removing a blog post from their website promoting Xumanii (XUII — disclosure: I’m short):

Blog post pumping $XUII quickly taken down by @themotleyfool “Jake Peacock” puts it up at @investingcom http://t.co/7D0vcSYsaN // I’m short

— Michael Goode (@goodetrades) June 10, 2013

Promotion Stock Secrets first wrote about a couple articles that had been commissioned by AwesomePennystocks on stocks they were promoting and about a blog post by a Forbes blogger, Tedra DeSue, promoting Swingplane Ventures (SWVI). Below is the text of her article on SWVI (available online here — the original article was taken down by Forbes).

This Company Has Copper Mining On Its Mind; Stock Moving On News
Demand for copper is falling, but that is not stopping one company from making bold moves to expand its processing of the metal.

Trading as a pink sheet stock, Swingplane Ventures Inc. (OTCBB: SWVI) sees there being significant opportunities for copper production on a property it has in Chile. Called the Algarrobo Property, Swingplane says there is considerable potential for production there high grade copper ore.
Company officials admit that production is currently limited because it does not have the proper license needed to sale ore. However, officials say they expect to have the license within a month. Once in production, Swingplane intends to acquire, through rent, lease and/or purchase, the necessary equipment, to increase production.

As it pushes to evaluate the potential for copper mining in Chile, the company is also dealing with concerns about its stock. Last week, it issued a note for investors saying it was aware of the volatility in the trading volume and price of its stock. Company officials are taking issue with a lot of chatter on Internet blogs and chat rooms that they say is not accurate.

In a statement released last week, it said its officers and directors are not “aware of any activity by stockholders or investor relations activity that may be the cause of this recent volume and price increase.” Specifically, the price reached almost $1 a share after trading at just under $.20 a share.

One of the world’s most recognized consulting firms in the mining industry has been contracted to assess the Algarrobo property.

At least one company is giving Swingplane good reviews. Awesome Penny Stocks notes that Swingplane is working with AMEC (AMEC International Ingenieria y Construccion Limitada) for an initial evaluation and report on the property in Chile. The consulting firm has been ranked two years in a row as a sector leader, which should bode well for Swingplane as it moves forward on its crucial mining effort. Amec is known for its work with companies like BP, Shell and the U.S. Navy.

As the company assures investors that its finances are strong, it must also deal with the fall in copper prices. The Wall Street Journal reported that the metal fell 5.4% this week, which was its work week since December 2011. The fall is due to China, the biggest buyer of copper, not buying as much of the metal.

I think that demand for the medal will pick up as the global economy recovers. As it does, the steps Swingplane is taking with its mining efforts in Chile will make it well-positioned as a company and a stock.
Not everyone has to stomach for over the counter stocks. If you do, you’re encouraged to take a hard look at this one. Some ideas include shorting the stock. As one investor said, to make money on the upside, get in early and get out early. You may be surprised that and happy about anything you make in between.

This article was distributed through the NewsCred Smartwire.
By Tedra DeSue for Forbes
Original article © Forbes

As was pointed out by someone (but I can’t remember who, because I think it was in tweets that were deleted), Tedra Desue has a website that links to a profile on eLance. Interestingly, there was a job posted on eLance that was for a Forbes article or blog post that she was hired for one day before she posted the positive blog post on SWVI. I am nearly certain that that job was for writing a pump article on SWVI (but it is possible though unlikely that this is just a coincidence). She was paid $250 for the article requested by that job. Unfortunately the person or entity that paid for the article deleted their account so it is not possible to see what other jobs they paid for. Below is a screenshot of the job.

Back in May The Motley Fool had a good article on how their site had been used to promote stocks by authors who did not disclose that they were paid to write positively about certain stocks. That article was reviewed in an article in the Columbia Journalism Review. That article was followed by Seeking Alpha’s mea culpa on their site being used to promote Goff Corp (GOFFE).

SeekingAlpha has indicated that they will change their procedures somewhat to reduce the possibility of stock promoters publishing articles on their platform:

How We Are Addressing Our Failure
First, we have conducted a review of the authors that posted these articles and for a variety of reasons in addition to this event, they will no longer be contributing to Seeking Alpha. It bears noting that we have no evidence that any of them were complicit in any illicit activity.

Second, we have reviewed our editorial processes and, as noted above, found them lacking. Therefore, we will be updating them as follows: First, in order to be included in an article, a stock will have to be trading at $1 or more per share AND have a minimum market cap of $100 million. If an article focuses on a single stock, we may make an exception in cases where we believe there is extreme value to our readers, and where the article provides deep, balanced research. While we recognize that a “one-size-fits-all” rule will inevitably impact our legitimate authors, our concerns over illegitimate stock promotions are such that we have to err on the side of caution.

But we will not stop there. In order to prevent inappropriate stocks being covered and potentially manipulated, when we receive an article on a stock that doesn’t meet the $1/$100 million threshold, we will conduct a secondary review to see if it is part of a paid promotion. You’ll forgive me for not sharing the precise review process in a public forum, but suffice it to say it will be robust. When questionable stocks are identified, submitting authors will be dealt with firmly.

Just two days ago, all these events were reviewed in an article for TheDeal.com by associate editor Bill Meagher. Below is an excerpt, including a couple quotes from me:

Jacob Wolinsky, who runs investment information website ValueWalk, said he was offered $1,000 to write an article praising Sunpeaks. Wolinsky said he was offered an additional $500 if he agreed not to disclose the payment, but refused the bonus. The article was published on Seeking Alpha in April 2012.

“I thought the guy who I talked to was just a shareholder who wanted some positive P.R.,” Wolinsky said in an interview. “I had no idea that there was a promotion going on. It was the first and the last time I did a sponsored story.”

Michael Goode, who has published almost 50 articles on Seeking Alpha, called Wolinsky’s article “yet another paid stock promotion on Seeking Alpha,” in a comment on the site. “SA has gone completely to the dogs over the last few years. It is a shame.”

Goode, a frequent investor and short seller in microcap stocks, said part of the problem with Seeking Alpha is there are so many contributors doing so many stories. “They let a lot of stuff go, and there is only so much they can do,” he said. “They are a lot better than they used to be.”

I do apologize for my contradictory remarks. I do think that SeekingAlpha has improved its editorial overview over the last few years but stock promoters and manipulators have been even better at evading the editors.

With SeekingAlpha, The Motley Fool, and Forbes becoming more vigilant the pumpers will likely go other places. With the current Awesomepennystocks.com pump Xumanii (XUII) I have seen them link to two positive articles on Investing.com that disclose no compensation but, knowing what I know now, I am almost certain that those authors were compensated.

Disclaimer: I am short 13,875 shares of XUII and have no position in any other stock mentioned above. I have no relationship with any parties mentioned above except that I talked to Meagher and am a contributor to SeekingAlpha. 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.

Inscor Inc. (IOGA) pump and dump, likely inflated budget

Tim Lento first reported on the Inscor (IOGA) pump on May 30th, 2013 when a landing page promoting the stock went online at IOGAReport.com. It had been promoted by some crappy email stock promoters prior to that point. I am obviously late to post the IOGA pump here. Judging by the short length of the landing page, the high claimed budget, the company’s absurdly high market cap, and the early involvement of very poor pumpers, I believe that IOGA’s budget is a lie and that the stock will do very poorly. I am considering IOGA to be a top potential short. Ideally it gets some more volume first.

Disclosed budget: $2,000,000

Promoter: Arbitrage Wealth Report and Carson Smith

Paying party: Excelsior Partners

Shares outstanding: 272,258,554
Previous closing price: $0.62
Market capitalization: $168 million

IOGA unsurprisingly received a positive report from Goldman SmallCap Research (aka Robert Goldman shills for pumpers) on April 10th, 2013, for which he was paid $8,000 from a “third party”.

As a side note, this seems like the perfect pump and dump for the SEC to litigate based on Lowe v. SEC as Carson Smith and the Arbitrage Wealth Report do not appear to in any way shape or form have a bona-fide publication or regular and general circulation (or even the appearance thereof, as many promoters like Tobin Smith have). Instead it is a one-time tout sheet. From the Supreme Court’s decision in Lowe v. SEC:

The exclusion itself uses extremely broad language that encompasses any newspaper, business publication, or financial publication provided that two conditions are met. The publication must be “bona fide,” and it must be “of regular and general circulation.” Neither of these conditions is defined, but the two qualifications precisely differentiate “hit and run tipsters” and “touts” from genuine publishers. Presumably a “bona fide” publication would be genuine in the sense that it would contain disinterested commentary and analysis, as opposed to promotional material disseminated by a “tout.”

Excerpt from pump website disclosure (emphasis mine):

This paid advertisement by Arbitrage Wealth Report (hereafter “AWR”) does not purport to provide an analysis of any company’s financial position, operations, or prospects and this is not to be construed as a recommendation by AWR, or an offer to sell or solicitation to buy or sell any security. Inscor, Inc. (hereafter “IOGA”), the company featured in this issue, appears as paid advertising, paid by Excelsior Partners $2,000,000 to enhance public awareness for IOGA.

…

Endorsement is expressly limited to the following statement: “Assuming IOGA receives millions of dollars in fresh capital and hires outstanding management, capital gains are possible.” In addition, all references to “analysts” refer to analysis and research undertaken at www.goldmanresearch.com and has not been independently reviewed or verified

Pump website disclosure:

IMPORTANT NOTICE AND DISCLAIMER: This paid advertisement by Arbitrage Wealth Report (hereafter “AWR”) does not purport to provide an analysis of any company’s financial position, operations, or prospects and this is not to be construed as a recommendation by AWR, or an offer to sell or solicitation to buy or sell any security. Inscor, Inc. (hereafter “IOGA”), the company featured in this issue, appears as paid advertising, paid by Excelsior Partners $2,000,000 to enhance public awareness for IOGA. Although the information conAWRned in this advertisement is believed to be reliable, AWR makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize it. The information conAWRned herein is based exclusively on information generally available to the public and does not contain any material, non-public information. Readers should perform their own due-diligence before investing in any security including consulting with a qualified investment advisor or analyst. Readers should independently verify all statements made in this advertisement and perform extensive due-diligence on this or any other advertised company. Endorsement is expressly limited to the following statement: “Assuming IOGA receives millions of dollars in fresh capital and hires outstanding management, capital gains are possible.” In addition, all references to “analysts” refer to analysis and research undertaken at www.goldmanresearch.com and has not been independently reviewed or verified. Neither Carson Smith nor AWR has performed independent due diligence on IOGA. AWR may also receive new subscriber revenue and mail list rental, the amount which is unknown at this time, as a result of this advertising effort. AWR nor any of their principals, officers, directors, partners, agents, or affiliates are not, nor do we represent ourselves to be, registered investment advisors, brokers, or dealers in securities. AWR is not offering securities for sale. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Research and any due diligence were conducted by an outside researcher for this advertisement. Further, specific financial information, filings and disclosures as well as general investor information about publicly listed companies and other investor resources can be found at the Securities and Exchange Commission website at www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Many states have established rules requiring the approval of a security by a state security administrator. Check with www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. This advertisement is not intended for readers in any jurisdiction where not permissible under local regulations and investors in those jurisdictions should disregard it. Investing in securities is highly speculative and carries a great deal of risk, which may result in investors losing all of their invested capital. Past performance does not guarantee future results. The information contained herein contains 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 continual growth of the featured company. Forward-looking statements are based upon expectations, estimates and projections at the time the statements are made and involve risks and uncertainties that could cause actual events to differ materially from those anticipated. Forward-looking statements may be identified through the use of words such as expects, will, anticipates, estimates, believes, or by statements indicating certain actions may, could, should, or might occur. Any statements that express or involve predictions, expectations, beliefs, plans, projections, objectives, goals or future events or performance may be forward-looking statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the publisher notes that statements contained herein that look forward in time, which include other than historical information, involve risks and uncertainties that may affect the company’s actual results of operations. Factors that could cause actual results to differ include, but are not limited to, the size and growth of the market for the company’s products and services, regulatory approvals, the company’s ability to fund its capital requirements in the near term and the long term, pricing pressures and other risks contained in the company’s reports filed with the Securities and Exchange Commission. Arbitrage Wealth Report is a trademark of Carson Smith. All other trademarks used in this publication are the property of their respective trademark holders. AWR and Carson Smith are not affiliated, connected, or associated with, and are not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by AWR or Carson Smith to any rights in any third-party trademarks.

PDF copy of pump page.

Polar Petroleum (OTCBB: POLR) pump and dump suspended by SEC

Prior to the market open today (but after a few unlucky folks bought the stock at $6.05 in premarket trading) the SEC suspended trading in Polar Petroleum. See the suspension order (pdf). Below is an excerpt:

SECURITIES EXCHANGE ACT OF 1934
Release No. 69721 / June 10, 2013
SEC SUSPENDS TRADING IN SECURITIES OF POLAR PETROLEUM CORP.
The Securities and Exchange Commission (“Commission”) announced the temporary
suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange
Act”), of trading in the securities of Polar Petroleum Corp. (“Polar”), of Anchorage, Alaska at
9:30 a.m. EDT on June 10, 2013, and terminating at 11:59 p.m. EDT on June 21, 2013.
The Commission temporarily suspended trading in the securities of Polar because of questions
regarding the accuracy and adequacy of assertions by Polar, and by others, to investors in press
releases and promotional material concerning, among other things, the company’s assets,
operations, and financial condition. This order was entered pursuant to Section 12(k) of the
Securities Exchange Act.

The company’s multiple press releases about its oil lease bordering an Exxon oil lease in Alaska are the likely reason for the halt: the press releases covered at length Exxon’s good news and intimated that it would be very good for Polar Petroleum as well.

June 3rd press release: Polar Petroleum Corp. Completes Acquisition of Prime Alaska Properties Bordering ExxonMobil’s Point Thomson Project in Alaska’s North Slope Region

June 5th press release: Polar Petroleum Corp. Reports on BP, ExxonMobil and ConocoPhillips Planning Additional $1 Billion Investment in Alaska Due to New Industry Friendly Tax Legislation

June 10th press release: Photo Release — Exxon to Spend $253 Million on Point Thomson Pipeline With Capacity of 70,000 Barrels a Day to Immediate South of Polar’s North Point Thomson Project

Here is an excerpt from the June 5th press release:

BP also announced it has support from the other Working Interest (WI) owners at Prudhoe Bay (BP 26%; Exxon 36%; ConocoPhillips 36%; Chevron 1%) to evaluate a further $3 billion worth of new development projects in the Greater Prudhoe Bay area. Among the additional development opportunities being evaluated are expanding and debottlenecking existing Prudhoe Bay facilities; constructing a new drilling pad; and expanding of existing pads, including the drilling of over 110 new wells. The additional development projects could take nearly 10 years to complete, and would be expected to further increase Alaska’s oil production while creating new industry jobs.[3]
The news is yet another indication that the state’s tax reform has revived Alaska’s energy industry by making it more attractive to oil industry investment. On April 17, 2013, ConocoPhillips announced its first additional investments on Alaska’s North Slope based on the tax change.[4] According to ConocoPhillips, the company will be deploying a new drilling rig to the Kuparuk oil field to work over existing wells in order to increase production.[5] BP’s June 3, 2013 news release included the following comments from the president of BP Alaska, Janet Weiss: “With this new tax law, the Alaska legislature and Governor Parnell have taken an important step toward improving Alaska’s long-term economic future. Our announcement today should make abundantly clear that BP is committed to being a part of that future and to continuing to extend the life of North America’s largest oil field.” Weiss also added: “Now that an improved tax structure is in place, oil and gas projects can once again move forward, keeping Alaska competitive in the midst of America’s recent energy renaissance.”[2]

I previously wrote about the Polar Petroleum pump and dump.

Disclaimer: I have no net position in any stock mentioned above and no relationship with any parties mentioned above. I am currently long 3200 shares of POLR in one account and short 3200 shares in another account. 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.

Biozoom Inc $BIZM pump and dump, purportedly uncompensated

I saw for the first time today online display ads promoting Biozoom (OTCBB: BIZM). The interesting thing about this promotion is that none of the websites touting the stock disclose any compensation. They specifically state that they do not own shares or get cash compensation to write about the company. I obviously believe that to be a lie. The pump reports can be found at:

http://www.thestockreport.com/BIOZOOMreport.pdf (pdf)
http://gfiz.com/GFIthegroundfloor.pdf (pdf)
http://www.gfiz.com/innovative-technology-company-invents-real-star-trek-medical-scanner-that-diagnoses-patient-health-in-seconds/6/
http://www.thestockreport.com/top-3-stocks-for-2013-and-beyond.php
http://www.emergingpennystocks.com/the-breakthrough-technology-engineered-to-power-the-medical-and-tech-sectors-for-the-next-two-decades.php

Disclosed budget: $0

Promoter: TheStockReport.com / GFIZ.com (Global Financial Insight)

Paying party: None

Shares outstanding: 114,964,138
Previous closing price: $0.485
Market capitalization: $55 million

Excerpt from disclaimer:

Global Investors Research, LLP does not accept stock either in payment of its services or in payment of sponsorship fees and “GIR” does not receive compensation of any kind for coverage of
companies in the “GIR” related websites, digital publications or reports. Their sponsor pages may be
considered advertising for the purposes of 18 U.S.C. 1734.

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Neither Global Investors Research
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[Edit 2013-6-18]: See this post on BIZM at Promotion Stock Secrets and their photos of Francisco “Fat Frank” Abellan, believed to be behind BIZM.

[Edit 2013-6-23]: Here is a recording of an ad for BIZM that aired on the Rush Limbaugh show. There have been reports of ads promoting BIZM in USA Today and BusinessWeek. Today there was a full page ad on the back page of the New York Times. People have also received hard mailers promoting the stock. Here is a scanned mailer (pdf).

Disclaimer: [Edit 2013-6-23]: I have no net position in BIZM but am short 10,000 shares in one account and long 10,000 shares in another account. 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.