the OTC .today

Monday, September 19, 2011
Today's PUMPs & dumpS

Fool's Gold Stocks Prosper Thanks to Fools

We start off the week with the quietest Monday. in terms of promotion campaigns, that we can remember in quite a while.  The respite is nice after a week in which no less than 39 different issues were promoted.  The cons' temptation to rip off the public is truly overwhelming and obviously much too easy to execute, which is why we called on President Obama to moderate his intent to make going public easier, as stated during his address to congress a couple of weeks ago.

No industry has created more fraudulent stock plays than the pretend gold mining business.  The price of gold has created a frenzy of phony gold plays, all of which have or will eventually come back to Earth.  This has already proven to be the case with previously featured (see our Archives) Pump & Dump campaigns, POTG, GGRI and CRWV. Current explicit frauds include LSTG, FGLD and the newest belle of the ball, AAGC.  Each of these campaigns tout previously proven fruitless gold claims, vended into public shells through reverse merger.  Each also claim billion dollar assets and takeover candidate status.  They are run by fraudsters and aided by touts with no soul.  You should be able to realize the actual intent of the promotions just by the number of touts paid to pimp the insiders' worthless stock.

The current state of gold frauds has become so intense, that last month, The Financial Industry Regulatory Authority (FINRA), felt it necessary to issue a warning by press release,  something it rarely does (unfortunately).  Citing a concern that, "...some investors may fall prey to gold-related investment scams.", FINRA defines the warning signs:
"These gold scams may center on inflated claims regarding the stocks of gold mining companies whose stock value is often based on gold reserves that are difficult to estimate, much less verify. For example, the Securities and Exchange Commission (SEC) took legal action against a mining company based in Florida for false press releases claiming that a mining project in Ecuador contained gold reserves worth more than $1 billion."
Doesn't this portrait sound like every gold Pump & Dump campaign perpetrated in the last several months?  Does a billion dollar play really vend itself into an empty shell instead of using an initial public offering to raise funds for exploration and production.  And would a billion dollar gold play have been overlooked by the major gold mining companies out there?  We feel that each of the aforementioned issues will undergo the same SEC scrutiny endured by Quri Resources.

We'll say it again.  Some will make money off these schemes.  Most will collectively lose millions of dollars.  The only ones guaranteed to profit are the perpetrators of these frauds.

Be aware that the DTC now requires trade for trade settlements for TAON, ORRVSPQS, DIAAF, TEMN, PRPM, and AGIJ.  This means that actual share certificates will now be required to settle trades in these stocks rather than the computerized system that the DTC uses for most trades.  Such an order is severe and suggests that there is a belief that unauthorized shares have been trading.  As trade for trade settlements are a cumbersome and require an intensive accounting procedure, many brokers will not permit the buying of these stocks or will charge higher brokerage fees for the trades, thereby possibly effecting the liquidity. This is often a warning sign that something is afoot and the best idea is to stay away!

Since Friday's close: 

GrowingStockReports.com and at least 2 other paid touts have been promoting WSHE in conjunction with a new, but repeat Pump & Dump campaign. 

HotStockProfits.com has been promoting URCO in conjunction with a new Pump & Dump campaign. 

HiddenGemStocks.com and at least 2 other paid touts have been promoting GRNE in conjunction with a new Pump & Dump campaign. 

PennyStockVideos.com and at least 6 other paid touts have been promoting AAGC in conjunction with an ongoing Pump & Dump campaign. 

PennyStockVideos.com has been promoting TKDN in conjunction with an ongoing Pump & Dump campaign. 

365NewsMedia.com and at least 1 other paid tout have been promoting FGLD in conjunction with a new Pump & Dump campaign.  

ClubPennyStocks.com and at least 1 other paid tout have been promoting NYXO in conjunction with an ongoing Pump & Dump campaign. 

PennyStockNewsletter.info and at least 1 other paid tout have been promoting BHRT in conjunction with an ongoing Pump & Dump campaign.