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July 6, 2011: Today's PUMPs & dumpS


Did you listen?  Our subscribers were the first to hear yesterday about the DTC's "Whoa Nellie" on GGRI.  Actually, the first clue came on Friday, when word quickly got around on the message boards that Ameritrade suddenly and wordlessly stopped taking buy orders on the stock.  On of our subscribers asked us about this and we set the research wheels in motion.

The Depository Trust and Clearing Corporation (DTC) had placed a "chill" order on the shares of GGRI.  A chill is issued when the DTC has reasons to believe that there are legitimate concerns about a company's stock processed through its system. This will restrict brokerages' ability to utilize the DTC to transfer the shares until the company's stock issues are cleared up or the stock no longer trades.

A second restriction on GGRI restricts trades to being settled with certificates only.  Settlement of a stock trade must occur within three days of a trade taking place.  While trades are usually settled with virtual transfer of the ownership of a certificate, under this restriction, GGRI trades must be settled with an actual certificate.

Now here's the strange part.  According to our contact at the DTC, the settlement restriction has always been on GGRI.  This is because GGRI has never applied for services from the DTC.  Our contact was surprised that DTC member brokers ever took buy orders on GGRI because they have had it restricted since late 2009.  What's we don't understand is that if a restriction has always been on the stock, why was a chill necessary?  Looks like both the officers of GGRI, the brokers and maybe even the DTC, all messed up.

Amazingly, even after all the warning signs, including our email to subscribers, were made public, buy orders from those either not in the know or too stubborn to listen, continued to pour in on GGRI.  We knew the sell-off was coming and you should have too.  If you were a victim of the carnage, it's your own fault.  Hopefully next time pay attention.

Our subscribers were also the first to hear about the DTC's total suspension of services for SFIO.  We were not able to obtain reasons for the suspension but can tell you that it was issued on Friday.  Many brokers have stopped taking orders for the stock.  In fact, we're told that Scottrade will not even accept sale orders from its account holders who held stock prior to the suspension. 

Alert:

Multiple paid touts continue to aggressively send emails promoting GGRI
We classify this as a pump and dump.

Alert:

Multiple paid touts continue to aggressively send emails promoting POTG
We classify this as a pump and dump.

Alert:

At least one paid tout is sending emails promoting AAAA
We classify this as a pump and dump.

Alert:

At least one paid tout is sending emails promoting EIHC
We classify this as a pump and dump.

Alert:

At least two paid touts are sending emails promoting DGIN
We classify this as a pump and dump.

Alert:

At least one paid tout is sending emails promoting VSPC
We classify this as a pump and dump.

Alert:

At least one paid tout is sending emails promoting GLDN
We classify this as a pump and dump.