the OTC .today

Monday, September 26, 2011
Today's PUMPs & dumpS

PPET Begins A PPump & DDump
also: The Brainy Brands Investors As Suckers

A purportedly former Senior Vice President at PETCO, has entered into the Pump & Dump business by becoming a Director of a single pet supply store called Passionate Pet (PPET).  This store which did a whole $362K worth of revenues in its last reported quarter, within a very low margin business, may need to Pump & Dump its stock to survive, as it lost almost $375K in that very same quarter.  The company has $77K in the bank but owes almost $2.5 million.  Early buyers of the stock are already losing 50% of their investment and its no wonder.  These numbers just don't support even the current $10 million+ market cap valuation.

We also expect PPET to get its hand slapped by PETCO, as the new PnD emailer incorporates the PETCO logo in an effort to give the company legitimacy, we'll bet without permission.  This is despicable, not only because the practice infringes upon the trademark rights of PETCO, but because the intent is to dupe potential victims of the PnD campaign into believing the PETCO is a supporter of this nickel and dime operation.

The Brainy Brands (TBBC) takes another shot at creating more investor losses with its third Pump & Dump of the year.  Investors in TBBC's mid-July PnD campaign are currently enjoying losses of up to 75%.  And no wonder.  According to the company's financials, $1.6 million in assets is offset by over $20 million in liabilities including $2.2 million in convertible notes which are sure to beget the creation of millions of more shares to add to the 36.5 million already issued and outstanding.  Consider the $16.5 million in losses in the last reported quarter and it's difficult to justify the current $12 million+ market cap.

Hoping to capitalize on the appetite the public has for phony gold mining stocks, Sagebrush Gold (SAGE) enters into the pretend gold mining business and the real Pump & Dump business today by beginning its campaign to find suckers to fund the lifestyles of an ever changing assortment of insiders.  Apparently, a lack of interest in the company's moderately successful business as a promoter of entertainment and sports events promoted the change into the much more promotable business of natural resources exploration.  In order to prime the pump, SAGE has obtained assets previously proven worthless by other exploration companies, including formerly identified PnD subject Liberty Star Uranium & Metals (LBSR).

One new Pump & Dump subject whose business we won't pretend to understand, is Energy Edge Technologies (EEDG), who purports to be a consultant in the yet-to-be-defined green energy business.  On their website, the company, provides a vague and non-specific discussion of their raison d'etre and claims to offer systems which save its clients energy costs (how about turning off the lights).  We're not sure why this belongs in a public company, or why it takes 13 members identified as the company's "Senior Staff" to generate $286K in quarterly revenues, but we'll agree that Pump & Dumps are green as they are emission free.  We are not surprised by the 65% decrease in the share price since the start of trading in EEDG two months ago and yet still cannot justify the $3.5 million market cap in a company with less than $15K in the bank.

Mina Mar Group's stepchild,  Zamage Digital Art (ZMGD), moves beyond its Daddy and brings WiseAlerts.com onboard to help try and light a fire under its ever deteriorating stock.  We wouldn't be surprised if it was Mina Mar itself that retained the tout, as we expect that it still has plenty of stock to divest from the proceeds of last year's reverse merger.

In last Wednesday's alert, we talked about our conversation with an attorney, which was predicated by his objection to allegations we made about his client.  We noted that the attorney, perhaps unknowingly, revealed that his client was the actual financier of the promotions even though touts had identified the ever-present third party as their financier.  This is a deception we talk about in our article, It's A Pump & Dump.  The commonality of this ploy was further evidenced by a September 21 press release intended to be a letter to shareholders of Onteco Corp. (ONTC).  In that letter, ONTC President, Dror Svorai, admits: 
"Several of you have noted that we have periodically engaged in "investor awareness" campaigns. On an intermittent basis we will continue to do so because as an early stage company with (to us) significant investment at stake, we believe we need to broaden the reach of our overall message, not only to the average investor, but to third parties who may be able to assist us in our future strategic and capital formation needs."
We'll point out that the touts' numerous emails to their subscribers, claimed that it was a third party that had financed that campaign, not the company.  Tsk, tsk.  Caught in a lie.  We'll also point out that, not surprisingly, ONTC's share price is down more than 80% from the highs achieved during the last PnD campaign.

Since Friday's close: 

HiddenGemStocks.com has been promoting PPET in conjunction with a new Pump & Dump campaign.   

ClubPennyStocks.com has been promoting SAGE in conjunction with a new Pump & Dump campaign.   

PennyStockScholar.com has been promoting EEDG in conjunction with a new Pump & Dump campaign.   

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

WiseAlerts.com has been promoting ZMGD in conjunction with an ongoing Pump & Dump campaign.    

PennyStockNewsletter.info and at least 3 other paid touts have been promoting EMPM in conjunction with an ongoing Pump & Dump campaign.   

HotPennyStocksOnline.com has been promoting FTWR in conjunction with an ongoing Pump & Dump campaign.     

QualityStocks.net has been promoting AAGC in conjunction with an ongoing Pump & Dump campaign. 

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

InvestorEnews.com has been promoting EVXA in conjunction with an ongoing Pump & Dump campaign. 

RisingPennyStocks.com has been promoting TNRI in conjunction with an ongoing Pump & Dump campaign. 

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

MomentumHunter.com and at least 2 other paid touts have been promoting LSTG in conjunction with an ongoing Pump & Dump campaign. 
 
OtcEquity.com and at least 2 other paid touts have been promoting GLHV in conjunction with an ongoing Pump & Dump campaign.  

StockProfessor.com has been promoting GRHU in conjunction with an ongoing Pump & Dump campaign.  

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

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