the OTC .today

Thursday, September 29, 2011
Today's PUMPs & dumpS

Lieberman Looks to Out FOX More Penny Players
also: a Blockbuster of a Scam

Touts and take the lead reigns of the ongoing scam being perpetrated on investors in Fox Petroleum (FXPT), which is led by Pump & Dump specialist, William Lieberman and his band of merry man.  FXPT is just the newest is a series of promoted natural resource plays that Lieberman has headed up, but he has yet to pull anything of value out of the ground.  What he has been able to create is cash bonanzas for insiders and losses for investors, as the share price of FXPT has been cut in half over the week or so since the last pumping email.

Sky Power Solutions (SPOW) began a promotion late in yesterday's session which resulted in an almost 47% increase in its share price.  We're not sure how investors are comfortable with a $150 million+ market cap on a company which last reported having $178 in the bank and debt of about $6.5 million, but who are we to judge?  We're sure that they take solace in knowing that they're investing in a solar power and battery company being run by Canadian restauranteur (huh?), Mehboob Charania.   Investors should take further comfort in knowing the Mr. Charania's other lithium battery venture, Li Ion Motors (LMCO), has seen an 84% decline in its share price since March of this year.

In the period since the last SPOW promotion, which took place on July 7, up to the start of the current promotion, the share price suffered through a 60% decline.  We'd be extra careful here.

Well we certainly correctly called the failure of the Pump & Dump plans for Genco Corporation (GNCC) and Searchlight Solutions (SLLN).  SLLN traded about $44K worth of stock as it found few new investors willing to take a chance on an issuer that is so obviously headed for lower prices and a reverse split, once 4 billion currently restricted shares, have matured and been sold into the market.  This was a case of the street being uninterested in being fooled for a third time after suffering as much as 83% losses following the previous two Pump & Dump campaigns. 

GNCC closed down almost 70% as insiders had to resort to bid whacking in order to raise any money at all.  In all about $60K worth of stock traded, as touts tried to convince investors that a company with no cash and no assets was a great buy.  We said in yesterday's alert that this was obviously a scheme and apparently the street believed us.  We expect that those that held on overnight will probably head for the exits over the rest of the week.

What was particularly pathetic about the GNCC failed PnD, was tout's email half hour after the market open, when it was already obvious that doom was in the air.  At 9:00am ET, disseminated a follow up email to its initial tout espousing better than expected projections.  By 10:00am ET they backed off their pump with the following email:
"Good Morning Again All. Just wanted to send an email confirming that we are not happy with the GNCC activity this morning. We saw the opportunities for a bounce and strong potential in the DD and News. However, once we saw the ruthless selling involved, we realized this potential is still there, but GNCC needs to be played safe. We owe it to our subscribers to inform them when we think they should remain extra cautious in any type of current market."
A note to The ruthless selling involved????  You facilitated that ruthless selling and it would be nice if you admitted it.  This was not a "pick"  You did not "see the opportunities for a bounce". You got paid to pimp a stock and your masters did not care about how their bid whacking looked on you.  Their is egg on your face and you should apologize to those you've hurt.  Perhaps next time, you will actually look into your client instead of just taking any dollar you can get.  Then you might be able to recognize an obvious scam because we sure did.

For the above left-handed attempt at a humbling email and the actual baseless touting of a company with zero fundamentals, we present with today's PIMP award, given to the tout who exhibits the most disgusting display of stock prostitution.

On the heels of a self-serving Pump & Dump scheme in which tout, sought to take advantage of its subscribers, the SEC has suspended trading in bankrupt Blockbuster, Inc (BLOAQ).  It is expected that the SEC will investigate the recent trading in Blockbuster, which saw a 500% increase in its intrinsically worthless share price, due to the scheme.

Promotions vs Pumps & Dumps
Starting with today's edition of our daily alerts, we're now trying a softening of our analysis of a few promotions.  While we do not believe that investors should be any less vigilante when considering stocks that we may take it easy on, we will open ourselves up to the possibility that some soft-sell promotional campaigns, may be just that: primarily promotional.  We may also change our mind.  This is a trial designation for us and we may terminate it, but for now, those promotions which we alone deem minimally aggressive, we will refer to as "promotions", while we will continue to designate hard-sell campaigns as Pumps & Dumps, because that's exactly what they are.

Some of the parameters we will consider when we assign a designation include: the number of touts promoting, the length of the promotion, the number and frequency of emails, the use of spam email, the frequency of the campaigns, the amount of money reportedly paid to touts, the language/content of the promotion, the resulting increase in volume and price action, the history and age of the promoted company, the ability to substantiate claims, the background of company insiders and the reputation of the touts retained to promote.  The decision of the judges (that's us) is final and will not be justified.

We are not changing anything on our website's Watch List as it is exactly that: a watch list. Investors should be wary of all stocks on that list and the one's in listed in our Pumps & Dumps Hall of Fame, which can be accessed by clicking on "List All" at the bottom of the Watch List.  Viewers can easily gauge the severity of a campaign by looking at the number of touts involved and its length. The Hall of Fame will also show how often a particular stock is involved in a campaign.

We have undertaken this trial under no duress or legal pressure.  We in no way ever condone the use of these touts to increase company awareness and would always suggest that company's increase awareness by issuing press releases and touting actual achievement. Nonetheless, we will give the occasional company the benefit of the doubt.

Since Wednesday's close: has been touting WOLV in conjunction with a new promotion has been touting SFOR in conjunction with a new, but repeat promotion has been touting MNDP in conjunction with a new promotion has been touting GATA in conjunction with a new, but repeat promotion has been touting FXPT in conjunction with an ongoing Pump & Dump campaign has been touting IPRC in conjunction with an ongoing promotion. and at least 1 other paid tout have been touting SPOW in conjunction with an ongoing Pump & Dump campaign. has been touting APII in conjunction with an ongoing Pump & Dump campaign. has been touting ALZM in conjunction with an ongoing Pump & Dump campaign and at least 1 other paid tout have been touting EVXA in conjunction with an ongoing Pump & Dump campaign. and at least 1 other paid tout have been touting EMPM in conjunction with an ongoing Pump & Dump campaign. has been touting SURE in conjunction with an ongoing Pump & Dump campaign. has been touting LSTG in conjunction with a long term Pump & Dump campaign. has been touting NYXO in conjunction with a long term Pump & Dump campaign. has been touting GRHU in conjunction with a long term Pump & Dump campaign.