June 29, 2011: We're getting a lot of email on POTG, some mocking us that it is skyrocketing in spite of the fact that we called it a Pump & Dump. Well we never said that Pump & Dump stocks don't go up.
One subscriber called POTG another LEXG. We couldn't agree more. We think POTG is exactly like LEXG. That doesn't mean it will go to ten bucks but it might. It might go to a hundred. Who knows? But one thing we do know is that a lot of people will get hurt on POTG just like a lot of people got hurt on LEXG. That's the thing with Pump & Dumps. Some will go up, but all eventually go down and most of the time go down hard. Some (mostly insiders) made a lot of money on LEXG. Even more took part in the millions of dollars lost. We promise you that is what will happen at the end of the day with POTG.
Other emails call for us to do an advisory on POTG. We'd love to do one but the trouble is that this company is based in South America. We can't find out anything about the people involved, including company President Paul Luna, or the properties that it purports to be so valuable. Which brings us to another point. Why would you invest in people far away from the reaches of the regulators, in areas (Peru) known to have a past with problematic mining claims. If this thing is exposed as a scam, who do you expect to chase the schemers who got away with your money?
And please don't fall for the old "well if it's in SEC filings or press releases it must be true otherwise the regulators would stop them". This is not the case. Companies lie in press releases and SEC filings every single day. Few get caught and even fewer or prosecuted. Now we are not saying that Portgage Resources is lying. We just can't confirm anything they say or do background checks on the peole behind it.
One thing is for sure. If this was the real deal, it would not be hiring so many touters to run Pump & Dump campaigns. We promise you that most of the stock investors are buying is coming from insiders.
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