Riviera Tool Corp $RIVT does a NEST

When people ask why I prefer to trade penny stocks and preferably OTC stocks, my answer is that I prefer to trade against people who are less intelligent and experienced than I am. Considering all the smart people working at hedge funds I would likely be less intelligent and less experienced than the people trading big money on real stocks like Apple and Tesla. But every once in awhile the amount of stupidity I see in the trading of a stock astounds even me. Riviera Tool Corp (RIVT) is a recent example of this.

What happened with Riviera Tool Corp (RIVT)? After the market close on Wednesday, May 6th, the Detroit Free Press reported that Tesla (TSLA) was buying “Riviera Tool” of Grand Rapids, a tool and die supplier to Tesla. After Riviera Tool Corp (RIVT) started spiking Jason Shubnell of Benzinga reported the acquisition and specified that it was Riviera Tool Corp (RIVT) that Tesla was buying, which was wrong — it was Riviera Tool LLC that was acquired. Riviera Tool Corp had all its assets seized by creditors back in 2007 and had been an empty shell since then. For summaries of exactly how there came to be a public zombie shell Riviera Tool Corp and a private Riviera Tool LLC, see this SeekingAlpha article. After the market close on the first day Riviera Tool Corp was halted by FINRA (U3 halt)  and it remains halted as I type this. See the intraday chart of RIVT on the day it spiked.

Back in 2013 a similar situation happened with Nestor Inc. (NEST) after Al Gore talked positively about Nest (maker of the Nest learning thermostat). Dumb investors/traders bought the stock of Nestor, which at the time was essentially a shell company with no assets, thinking it was Nest Inc. Take a look at the intraday charts of NEST over the three days it ran up and then dumped back down (days 1 and 2; day 3). Here is a description of what happened. When Google acquired Nest in early 2014 Nestor Inc stock had another run. The NY Times Dealbook had a nice description of what happened then.

The Nestor / Nest confusion wasn’t even the only time that happened in 2013. In the same month that year there was lots of talk about Twitter (TWTR) going public and the company started filing paperwork for its eventual IPO. Traders then bought stock in bankrupt (and essentially worthless shell) Tweeter Inc (TWTRQ) and the stock shot up from 1 cent to 14 cents. Even after the first run up and a halt to change the ticker to THEGQ so that people would not be confused the stock had a second run up two weeks later and ran from 2 cents to 10 cents.

 

Disclaimer: This article has been edited to show that NEST had two separate dumb runs after news of Nest Inc. I am short 15,000 shares of RIVT at Interactive Brokers that I will look to cover when it reopens for trading. 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.

IFAN Financial $IFAN Hard mailer pump and dump

IFAN Financial (IFAN) is the new hard mailer pump on the block. It has a low starting price for a hard mailer pump and a high purported budget that is likely overstated, judging by the trading volume in the stock. See the Promotion Stock Secrets article on the IFAN pump. There have also been two negative articles on IFAN on SeekingAlpha. Besides the hard mailer there is also a website landing page promoting IFAN at http://ifanreport.com/

 

Disclosed budget: $3,500,000
Promoter:  Mintefor Investments Ltd and Don McShane
Paying party: ?
Shares outstanding: 79,960,020
Previous closing price: $0.61
Market capitalization: $48 million

ifan_mailer

Excerpt from disclaimer:

Mintefor Investments LTD paid three million and five hundred thousand dollars to marketing vendors to pay for all the costs of creating and distributing this Advertisement, including printing and postage, in an effort to build investor and market awareness. Don McShane received twelve thousand dollars for this advertising campaign and expects to receive an unknown amount in subscription revenue.

Full disclaimer:

Disclaimer: We are in the business of marketing and advertising companies to generate exposure of them through newsletters for monetary compensation. This is paid advertising and does not purport to provide an analysis of the featured company’s financial position, operations or prospects. Because this advertisement has not been prepared with any one individuals financial condition or investment goals in mind it is not to be construed as a recommendation or solicitation to buy or sell any security. This newsletter nor any of its affiliates are not registered investment advisors or broker dealers. It is advisable to consult a registered investment advisor for advice on your specific investment situation. Mintefor Investments LTD paid three million and five hundred thousand dollars to marketing vendors to pay for all the costs of creating and distributing this Advertisement, including printing and postage, in an effort to build investor and market awareness. Don McShane received twelve thousand dollars for this advertising campaign and expects to receive an unknown amount in subscription revenue. Viewers of this advertisement should understand that trading activity and stock prices in many if not all cases tend to increase during the advertisement campaigns of the profiled company and in many if not all cases tend to decrease thereafter. This tends to create above average volatility and price movements in the profiled company’s stock during the advertisement campaign that viewers should take into consideration at all times. 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. You may lose your entire investment. If you cannot afford to lose your entire investment do NOT invest in penny stocks. This advertisement is based entirely upon information gathered from public information and third party websites. Although the information contained in this advertisement is believed to be reliable, this newsletter makes no warranties as to the accuracy of the content of this advertisement, expressly disclaims and accepts 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, reviewing the publicly available financial statements of, and other information about these featured companies and verifying that an investment in that company is appropriate and suitable for you. This advertisement contains forward-looking statements about the featured company its business and prospects. Such forward-looking statements are within the meaning of Section Twenty Seven A of the Securities Act of 1933, as amended, and Section Twenty One E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions created by these laws. Where a featured company expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.

 

ifan

PDF copy of landing page

[Edit 2014-12-19]: See this article on IFAN on SeekingAlpha. An updated chart is shown below. I no longer have any position in IFAN.

ifan

 

Disclaimer: I am short IFAN and will look to add to my short. 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.

Owners of $CRMBQ stock no longer own Crumbs Bakeshop – yet it was still up 100% yesterday

Yesterday the stock of the bankrupt Crumbs Bakeshop (CRMBQ) went up over 100%. This is likely because foolish people who don’t understand bankruptcy heard the news about the purchase and think current shareholders will benefit. They will not.

See the order yesterday:

Order Under 11 U.S.C. § 105(a), 363 and 365 (I) Authorizing and Approving Sale of Substantially all of the Debtors’ Assets Free and Clear of Liens, Claims Encumbrances and Interests, (II) Authorizing and Approving Assumption and Assignment of Certain Unexpired Leases of Non-Residential Real Property in Connection with the Sale and (III) Granting Related Relief (related document:22 Motion re: for an Order Pursuant to 11 U.S.C. Sections 363 and 365 and Fed. R. Bankr. P. 2002, 6004 and 6006: (1) Approving “Stalking Horse” Asset Purchase Agreement for the Sale of Substantially All the Debtors’ Assets; (2) Approving Bidding Procedures and Form, Manner and Sufficiency of Notice; (3) Scheduling (A) an Auction Sale and (B) a Hearing to Consider Approving the Highest and Best Offer; (4) Authorizing the Debtors to Sell Substantially all their Assets Free and Clear of Liens, Claims, Encumbrances, and Interests and to Assume and Assign Certain Related Executory Contracts and Unexpired Leases; and (5) Granting Other Related Relief Filed by Michael D. Sirota on behalf of Crumbs Bake Shop, Inc.) Service of notice of the entry of this order pursuant to Rule 9022 was made on the appropriate parties. See BNC Certificate of Notice. Signed on 8/27/2014. (slf) (Entered: 08/27/2014)

See my post about the news reports of the sale of the assets to Lemonis Fischer Acquisition Corp and my earlier post detailing the stalking-horse bid details.

crmbq

See also the Wall Street Journal article on this from yesterday (excerpted below):

The investor group’s no-cash offer leaves unsecured creditors in the Chapter 11 case with few options for recovery. An attorney for the unsecured creditors said in court filings on Monday that a creditor committee could pursue lawsuits against as-yet-unnamed parties to earn money for the group.

Mr. Sirota said after the hearing that the company will liquidate its remaining holdings but that the bulk of the work is done with the conclusion of the sale.

Disclosure: I am short CRMBQ and CRMUQ and I am a day-trader. I may close my short position or short more at any time. My plan is to keep adding to my short on any spikes and then hold for 50%+ gains. 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.

The Confusing case of the Overseas Shipholding $OSGIQ bankruptcy

I follow LongShortGreek on Twitter and have found his information and thoughts about bankrupt stocks to be good and actionable. When he tweeted that the bankruptcy plan would give current OSGIQ shareholders $2/share worth of new equity I was intrigued by the seemingly obvious short.

See the most recent OSGIQ 10-K for the total share count:

As of March 3, 2014, 30,677,595 shares of Common Stock were outstanding.

See the most recent bankruptcy plan (dated March 7th, 2014).

From page 27 in the bankruptcy plan (emphasis mine):

(k) Class E1: Subordinated Claims and Old Equity Interests in OSG.
(i) Classification. Class E1 consists of all Subordinated Claims and
Old Equity Interests in OSG.
(ii) Treatment. Effective as of the Effective Date, on, or as soon as
reasonably practicable after the Initial Distribution Date, each Holder of an Allowed Class E1
Claim or Allowed Class E1 Old Equity Interest shall receive, in full satisfaction, settlement,
discharge and release of, its Allowed Class E1 Claim or Allowed Class E1 Old Equity Interest,
as the case may be, a pro rata share of Reorganized OSG Equity equal to $61.4 million, subject
to dilution on account of the Management and Director Incentive Program, the Rights Offering,
and the Commitment Premium Shares and Warrants. The Reorganized OSG Equity to be
distributed to each (x) Domestic Holder of an Allowed Class E1 Claim or Allowed Class E1 Old
Equity Interest shall be in the form of Reorganized OSG Stock, and (y) Foreign Holder of an
Allowed Class E1 Claim or Allowed Class E1 Old Equity Interest shall be in the form of a
combination of Reorganized OSG Stock and Reorganized OSG Jones Act Warrants, as necessary
for Reorganized OSG to comply with the Jones Act.
(iii) Voting. Class E1 Claims are Impaired and the Holders of Allowed
Class E1 Claims and Allowed Class E1 Old Equity Interest as of the Voting Record Date are
entitled to vote to Accept or reject the Plan.

So the shareholders of OSGIQ will receive shares in the new company equal to $61.4 million. Divide that by the number of shares and you get a value of $2.001 per share of OSGIQ.

For a contrary viewpoint see the shareholders’s response to the plan on February 26th (PDF).

Here are a couple recent filings by the debt & equity committee that bode well for the plan being approved:

http://www.kccllc.net/osg/document/1220000140328000000000011

http://www.kccllc.net/osg/document/1220000140319000000000010

So what is the catch? There are currently 170,000 shares of OSGIQ available to short at Interactive Brokers (FTP link to full short list) and the borrow rate is only 3.45% APR. That would indicate that there is something I am missing otherwise the borrow rate would be higher. For past obvious bankruptcy shorts like EKDKQ (Kodak) or EXMCQ (Excel Maritime) the borrow rates were way over 20% APR (closer to 60% if I recall correctly, and the effective borrow rate on each was well over 100% due to their low share price).

OSGIQ|USD|Overseas Shipholding Group Inc|10859|XXXXXXX81053|-3.37|3.45|1700000|

Equity holders have until April 4th to review and file objections to the plan. On that day the judge will review it (as I publish this I think that date has been delayed two weeks).

See this page for updates from the bankruptcy court.

For a contrary view of OSGIQ take a look at this random person’s tweets. I am thoroughly confused right now so I closed for a loss my original short position that I took two days ago.

osgiq

Disclaimer: I have no position in OSGIQ and I may short or buy at any time. 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.

A Brief recap of my trading in 2013

I have been working on finishing up my accounting for my taxes and the program I use to track my trades for tax purposes, Tradelog, also can put together some interesting and useful reports. Below are a couple of mine. Note: as with all trade data I provide here I believe these are correct but cannot guarantee that.

A few highlights: I traded 334 different stocks last year. Trades on just three stocks, FNMA, FMCC, and AAMRQ combined for $53,000 (about 1/6) of my profits. Every other stock on which I made more than $10,000 was a pump and dump of one sort or another: XUII, SWVI, PVEN (Awesomepennystocks pumps); TEWI (uncompensated Focus Media pump); OCTX and NAMG (mailer pumps); NNRX and GNIN (Brighton Markets pumps). Note that the largest loss by far was ($17,650) on TGRO — I ended up making over $16,000 net on that once 2014 trades are included (I am a mark-to-market trader so open positions at the end of each tax year are marked at the closing price of the stock).

Trade profits by ticker (PDF)

Weighted by shares (not by trade), 72% of my trades were winners. My total commission cost was $57,188.07. Not shown in any of these reports are my expenses: about $33,000, most of which was for short stock borrow fees.

2013 performance report (PDF)

profit chart

 

Disclaimer: I use Tradelog for tax preperation. I do not receive any benefit by referring people to it. No position in any stock mentioned above. 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.

 

Nutranomics $NNRX pump and dump (with emphasis on the dump) by “Brighton Markets”

Perhaps the most enigmatic stock promoters currently in business is the group known by traders as “Brighton Markets”. They bring huge volume to their promotions and their promotions last for weeks or months. Their two most recent promotions were of iTalk Systems (TALK) and Green Innovations Ltd (GNIN). Prior to these two promotions (their only promotions this year) Brighton Markets had been less successful and was best known for the epic dumps of their pumps. Despite the big moves up in TALK and GNIN, both had epic dumps as well. See my blog posts on prior Brighton Markets pumps GNIN and TALK.

gnin

Why is Brighton Markets the most enigmatic of current promoters? Well, the thing I find most interesting about them is that they appear to use their websites for only a brief period of time, two or three pumps, before abandoning them and adding new websites. While other promoters have added and shed lots of websites, the rapidity with which Brighton Markets abandons websites is far greater, more akin to the spam promoter “StockCastle” than to AwesomePennyStocks. Here is a current list of active Brighton Markets websites that I have discovered: note that only a few of these websites were also used for the TALK promotion.

nationaltradersassociation.com
NationalTradersAssociation.org
DividendSeeker.net
investors-alliance.com
tradersinsight.net
EquityPlays.com
Equity-Plays.com
BuysideTraders.com
InvestorsSense.com
InvestorsReports.com
Market-Digest.com
AnalystsCorner.com
WSReports.com
wallstsource.com
GainerHunters.com
STSense.com
PlatformAnalysis.com
ECAgrp.com
IndustryWeekly.net

Notice the IP addresses of the websites in the list below. Over the last year most traders of promoted stocks have become aware of the ease with which a person can run a reverse-IP search to see what other websites are on the same server and have the same IP as a promoter’s website. I guess the “Brighton Markets” folks thought they would make it a little harder by putting their websites on different IP addresses. Of course, because they are all hosted at OffshoreRacks.com, they have IP addresses that are very close and they share a domain name server. Once I figured that out it was easy to find their other functional websites (and many that are defunct).

 

Website IP Address
nationaltradersassociation.com 190.14.39.26
NationalTradersAssociation.org 190.14.39.26
DividendSeeker.net 190.14.39.29
investors-alliance.com 190.14.39.30
tradersinsight.net 190.14.39.19
EquityPlays.com 190.14.39.13
Equity-Plays.com 190.14.39.13
BuysideTraders.com 190.14.39.12
InvestorsSense.com 190.14.39.22
InvestorsReports.com 190.14.39.18
Market-Digest.com 190.14.39.21
AnalystsCorner.com 190.14.39.16
WSReports.com 190.14.39.17
wallstsource.com 190.14.39.17
GainerHunters.com 190.14.39.11
STSense.com 190.14.39.25
PlatformAnalysis.com 190.14.39.20
ECAgrp.com 190.14.39.23
IndustryWeekly.net 190.14.39.27

Here is a list of some of their defunct websites or websites that may not have ever been used:

WorldStreetFundamentals.com
BrightonMarkets.com
BollingerReport.com
BeforeTheCrowd.net
Provestor.net
TechnicalGroup.org
GainHunting.com
Micro-Cap.org
CFAReports.com
EquityPlayers.com
SmallCapitalNetwork.org
SectorTracker.org
QuickTickers.com
GainerHunter.com
TradersInsightMagazine.com
InvestmentNewsCenter.com
FinanceNewsletter.com
StockTipLine.com
GainHunter.com
GlobalEquityAlert.com
EquityLeader.com
MarketFoundations.com
BreakoutFinder.net
PennyStockplayerz.com
EquityMarketsinc.net
RisingSunReport.com

talk

Taking a page from the AwesomePennyStocks playbook, the Brighton Markets group has continued to send emails to the email lists of many now-defunct websites, including BrightonMarkets.com (email I received on 9/28 shown below):

nnrx_email

But even more interesting is that the CANSPAM-required information of all of these emails shows the following image:

membersealgray

 

Clicking on the “Legal Disclaimer” or “Compliance Disclosures” links takes you to different pages on the ECAgrp.com website. Visiting that website is like taking the blue pill and going down the rabbit hole. Evidently, ECA stands for “Ethics, Compliance & Awareness”. I never imagined that I would ever see a stock promoter talking up their ethical credentials. Perhaps even more bizarre is that at the footer at the bottom of that web page indicates that the ECA Group is a self-policing professional organization and links are given to file complains about a member and to submit an official inquiry from a regulatory body. That all sounds very professional, but of course every single promotion website that is part of the ECA Group is owned by the same promotion group, promoting the same stocks, and run on the same server.

self-reg

complaint

The cherry at the top of this absurdity sundae though has to be the WHOIS information on the website ECAgrp.com This “self-policing professional organization” has a website that was registered on 26 September 2013, after the promotion of NNRX had already begun.

whois

nnrx

[Edit 2013-12-12] There was an ‘analyst’ website setup to promote NNRX called EquitiesExpertise.com. A copy of their NNRX report is here.

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

I must be doing something right …

Here are my monthly profits along with a 6 month forward moving average of each (the average is for the current month and the next five months). My records for 2007 and 2008 are not nearly as reliable so are not included.

Two of my three most profitable months since 2009 have been this month and last month. Four of my six most profitable months were the four most recent months.

Unfortunately I have not been able to upload my recent trades from Interactive Brokers to Profit.ly, so my profits at IB do not show up on Profit.ly (but do show up in the chart below).

$ Profits

These figures do not include data fees or borrow costs.

Disclaimer:  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.

SK3 Group (OTCBB: SKTO) easy short for anyone with tons of spare cash

SKTO is likely to be suspended by the SEC. See all the reasons why in this post on Promotion Stock Secrets. This presents a nice low-risk shorting opportunity. However, due to the low stock price it is not yet a large enough opportunity to entice me.

Interactive Brokers has 4 million shares of SKTO to lend with a 1.25% APR borrow rate. That gets charged on collateral ($1.00 per share) so it is the equivalent of a 25% APR on the value of any short position. With a stock price of $0.05, to short 40,0000 shares requires $100,000 in cash and gets you a $2,000 position. Assuming that SKTO gets an SEC suspension within a couple weeks and drops 75% you cover for $500 and pay $42 for the borrow for one month and you make $1.46% on your $100k of capital used in one month. Very nice low risk trade for anyone who has tons of spare cash. That doesn’t describe me so I’m hoping SKTO stocks goes up a lot more. At $0.10 and above the short starts looking really nice.

skto

Here is the chart of another scam company that was suspended by the SEC not long ago, Southridge Enterprises (SRGE):

srge

 

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.

American Graphite Technologies (OTCBB: AGIN) $1.1m hard mailer pump & dump

American Graphite Technologies (OTCBB: AGIN) has been on the watchlist of Prepromotion Stocks since back in January. It is now a confirmed hard mailer pump. A former Tim Challenge student emailed me this morning with photos he took of it. Click on each image to see a full-size version. Disclaimer here.

[Update 3/14/2013]: See a scan of the full 26-page mailer (40 megabyte pdf). Thanks to Sam.

agin2 agin4 agin1

Disclosed budget: $1,160,000
Promoter: Wall Street Revelator

Paying party: Heavenly Vision Ltd.

Shares outstanding: 78,218,750
Previous closing price: $0.89
Market capitalization: $69 million

Report on Promotion Stock Secrets on AGIN.

 

Excerpt from disclaimer:

 Wall Street Revelator is a bona fide publication of general and regular circulation … Wall Street Revelator has received a total amount of twenty seven thousand … Heavenly Vision Ltd. paid one million one hundred sixty thousand …

 agin

The previous Wall Street Revelator pump was MAXE, which did poorly:maxe

[Update 3/14/2013]:

Thee is now an online pump page for AGIN: http://graphenestock.net/trends-agin/

Partial disclaimer: “Graphenestock.net and its affiliate companies have been paid three hundred thousand dollars in cash by Heavenly Vison for investor relations work.”

PDF copy of pump page.

 

Disclaimer: I am long 3,000 shares of AGIN purchased at $0.93 this morning. [Update 3/13/2012 – I sold my shares for a small gain soon after the open]. I am a day-trader and may sell these shares at any time. 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.

 

Global Gaming Network (GBGM): First the pump, now the big dump

The GBGM pump has been one of the more interesting pump and dumps of late. It started on Friday June 8th around the open with pump emails from PHD-Trading.com (disclosing $200,000 in compensation). I thought the email was simply spam because I could not remember ever signing up to pump websites with that email ([email protected]). I thought that email address had simply been scraped off of TimothySykes.com (where it used to be displayed on the chatroom rules page). Only much later  that day did I get around to actually looking and I had only ever received one pump email to that email address, from ThePennyStockJerk.com, a website affiliated with BestDamnPennystocks.com. All the BDPS websites had already sent teaser emails talking about their new low-float pump that they would pump Monday at the open (for BestDamnPennyStocks.com and a few premium email lists) and at the open on Tuesday (all the other websites).

It was the strong price action of GBGM that made me look into it — plus Jarmall’s questions about GBGM that convinced me that the price action was not indicative of a pure spam pump. That led me to sign up to the free email list of PHD-Trading. The welcome email I received shortly thereafter was quite informative. At the bottom of the email, the name and address (as required by the CANSPAM law) was GS MEDIA | 2885 Sanford Ave SW #16525 | Grandville, MI 49418. I know from my pump research that GS Media is one of the legal entities tied to BestDamnPennystocks.com (BDPS), which of course was scheduled to have a new pump the very next trading day.

I thought this was a good opportunity to potentially front-run the BDPS pump, so I tried to find any other links between PHD-Trading.com (and GBGM) and BDPS. One link was that BDPS had sent teaser emails saying that their upcoming pump was a low-float stock. GBGM, while having tons of shares outstanding (461 million!), had its float listed as 1.2 million shares on OTCMarkets.com. Another connection was the fact that PHD-Trading.com had both a free email list and a paid product, sold through Clickbank — while there are other stock promoters who sell access to a ‘premium service’ through Clickbank, none has used it as extensively as BDPS. There were other links as well, but I won’t disclose them in a free blog post.

I have front-run BDPS pumps in the past, and it is a risky thing to do. It worked well once and another time they delayed the pump, likely because I had front-run it. I am fairly sure they have delayed other pumps when they were frontrun. However, when I first remember hearing about their HoleinOneStocks.net website back in autumn of 2010, the premium subscribers got one pump a full day before any other BDPS websites (since then they have never gotten a pump earlier than the main BDPS website, so don’t up for them!). If PHD-Trading.com was truly a new BDPS-related website then it would make sense that they woudn’t delay the pump. I bought 40,000 shares at .265, taking a substantial risk (if I was wrong and BDPS didn’t pump GBGM then I would likely lose 50%). I shorted 5,000 shares at Interactive Brokers at .29 to reduce my risk prior to the close and then held over the weekend, selling into the opening spike Monday.

Here is my long trade:

Partly because of me shorting at .29 on Friday and partly because I made some stupid trades, I lost $766 on subsequent trades on GBGM. Click the links to see them: trade 2, trade 3, trade 4, trade 5, and trade 6.

As with almost all BDPS pumps, GBGM has now dropped big from its highs just a week ago and is now well below its price at the beginning of the pump. As with all pump and dumps, it will go even lower in the long run. I do not recommend buying pumps or trying to front-run pumps — those are both very risky and most people who try it lose big. The easiest profits anywhere are from shorting pumps, particularly from the worst promoters. For example, after 41 trades this year shorting the pumps of crappy pumpers, I have made $8800 and my dollar-weighted average profit margin is 11.15% with no losses over $90. (I have had a bad year short selling and have actually lost $1900 on my pump shorts not including my crappy pump shorts or the $8400 I have made with longer-term pump shorts.)

Below is a listing of all the compensation listed from various promoters that I have seen on GBGM. The total compensation is certainly lower than the total disclosed below because some promoters have paid part of their compensation to other promoters.

First are the various legal entities / groups that comprise the BestDamnPennyStocks.com group of pump websites.

BestdamnPennystocks.com (BDPS) discloses, as usual, the most compensation:

BestDamnPennyStocks.com expects to be compensated $500,000 Cash by a non-controlling third party for a GBGM investor relations services.

There is JackpotPennyStocks.com, an affilaite of BDPS:

JackpotPennyStocks.com expects to be compensated $20,000 from a non-controlling third party for GBGM Investor Relations services.

Another group of BDPS-affiliated websites, exemplified by GetRichPennystocks.com, was paid $30k:

GetRichPennyStocks.com expects to be compensated $30,000 cash from a non-controlling third party for GBGM Investor Relation Services.

PHD-Trading.com started the pumping last Friday and prior to that no penny stock traders I know were aware of the website and it appears that got their email list from some other pumper. They have their disclaimer as an image, copied below the quote:

PHD-Trading.com expects to be compensated two hundred thousand dollars for GBGM advertising investor relations services.


(click image to embiggen)

StockMister.com is a 2nd-tier or 3rd-tier pumper that is run by the same company as StockExploder.com (which of course disclaimed the same compensation). Here is its disclaimer:

StockMister.com’s parent company Micro-Cap Consultants, LLC has been compensated up to Two-Hundred and Fifty Thousand Dollars Cash by a third party (Online Marketing Media LLC) for a 1 Week Marketing Program regarding GBGM, Micro-Cap Consultants, LLC has also been promised an additional compensation of up to Two-Hundred and Fifty Thousand Dollars Cash by the same third party (Online Marketing Media, LLC) for the same 1 Week Period of Marketing Efforts regarding GBGM.

Stockmister paid for IPR Agency LLC (see my prior blog post about Tim Sykes looking to sue them for libel) to promote GBGM as well:

We have been compensated up to eighty thousand dollars to conduct one day of investor relations marketing for GBGM by a third party, StockMister LLC.

StockLockandLoad.com is run by a pumper who also runs StockBomb.com and Pennystocklocks.com and Stockrockandroll.com.

StockLockandLoad.com has been compensated twenty-five thousand dollars for this one-day profile on GBGM by MJ Capital, LLC.

Another pumper is Pennystockcrew.com. They win the award for smallest font used for a text disclaimer:

Penny Stock Crew has received $20,000.00 in cash compensation from Hunter Marketing LLC for the one day profile of Global Gaming Networks […] Penny Stock Crew is owned by: ODD Marketing LLC , 433 Plaza Real Suite 275, [Boca Raton, FL] 33432

PennyStocksProfile.com is a small-time pumper most noted for riding the cottails of AwesomePennystocks.com pumps SNPK and GWBU this year. Unfortunately, they use an image rather than text for their disclaimer, which makes me retyped it. The image is copied below the quote.

PennyStocksProfile.com is owned and operated by PLVP LLC. The company has been compensated $10,000 by Online Marketing LLC for publication of this information.


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Another annoying pumper is Investors Alley Inc. (a Quebec corporation) group of at least six websites that used an image to show its disclaimer:

Please be advised that Investor Alley Inc. expect [sic] to be paid up to twenty five thousand dollars from a third party- Micro Cap Consultants – to perform promotional and advertising services for a one day profile of GBGM.


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Stock Connection is a 5th tier stock promoter with a number of websites, including PennyStockPickAlerts.com:

PennyStockPickAlert has agreed to be compensated fifteen thousand dollars for a three day public awareness marketing campaign for GBGM from the third party InterVcap LLC.

Another pumper that promoted GBGM is GlobalInvestmentAlert.com, with which I was not familiar prior to this pumps:

GIA, Inc expects to be compensated up to $100,000 by CF, Inc for one weeks coverage of GBGM.

 

 

Disclaimer: I have no position in any stocks mentioned and I have no relationship with any people mentioned, except for Jarmall who is a member of Tim Sykes’ Trading Challenge (I work for Tim with that). I trade pump and dumps and OTCBB / Pinksheets stocks. 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.