the OTC .today

Wednesday, September 21, 2011
Today's PUMPs & dumpS

Making Friends!

I had an interesting conversation with an attorney yesterday over an objection he had about his client being discussed by us for its extended Pump & Dump campaign.  The reason we at PnD.com decided to respond to this particular attorney's email, as opposed to the several others who make obnoxious demands, was that he requested a retraction to one of our less inflammatory commentaries. Our curiosity piqued, we decided that I would call him to discover the nature of his concern. Out of courtesy to him and in appreciation for the very pleasant exchange we had (as opposed to the demanding, under-educated idiots we are usually confronted by), I won't mention the attorney by name or identify his client.

In defense of his client's actions, the attorney tried to convince us that his client had spent 100s of thousands of dollars promoting their stock, in hopes of "raising investor awareness" and increasing the share price.  By the way, the attorney, perhaps unknowingly, confessed that it was the company who financed the promotions, in spite of the fact that the touts all claimed that a third party had paid for the campaign.  This is not surprising and we discuss this ruse in our article, It's A Pump & Dump.

Naturally, I didn't buy into the attorney's argument and pointed out that if the true intent was to raise awareness and increase the share price, that strategy failed miserably, as the stock was down 50% after each campaign.  I also noted that penny stocks never, ever maintain the share price increase achieved through a promotion campaign and that his client knows that fact, as the stock dived after the first campaign and yet a second campaign was still undertaken.  I also suggested that perhaps the company would be better off spending its limited resources on growing its business instead of promoting the stock, especially if intentions were honorable (they weren't). It was difficult for the attorney to put up a reasonable argument after I made these points.

The attorney then resorted to refuting our claim that it was "insiders" that were selling stock, even though he admitted that they knew that there was a particular seller.  We then debated the definition of insiders.  He conveniently chose to narrow his definition to current company officers.  I argued that in addition to an officer, director or employee of the company, an insider was anybody who had access that the general public did not.  Whether that person be a former officer/director, previous owner of the shell or a private placement investor, that person has inside access to obtaining stock at discounted prices, that the general public doesn't.  That makes him an insider.

The killer to his argument was when I revealed the nature of the promoters with whom his client was doing business.  I asked him, "What would you call a company trading in the pennies, who weeks ago underwent a reverse merger and now suddenly claims to have billions of dollars in gold properties?"  The attorney acknowledged that under this scenario, a scam would seem to be in the works.  I then asked him, "What would you call the promoters who try and convince the public that this suddenly amazing penny company was about to be taken over by a major gold producer?"  The attorney agreed that these promoters would have to be scum.  That's when I laid reality on him.  I told him that his client was employing these very same promoters.

Upon that revelation, there was dead silence on the other end of the phone.

We ended our conversation pleasantly and the attorney acknowledged that although he still believed that his client was honorable, we had a place in the public markets as there are many schemes out there.  He also suggested that we discuss other business in the future.  He even called me a good guy.  Aw, shucks!

All American Gold (AAGC) has now retained an astounding 21 paid promoters to tout their pipe dream.  We give the Pump & Dump campaign mixed reviews because although some suckers have bought into the notion that gold has suddenly appeared in lands where there were none before, only $3.5 million worth of stock has traded since the inception of the campaign, rendering insiders barely enough to over the costs of the Pump & Dump.  It's possible that this scam began too early, as there are several other ongoing promotions involving pennies in the pretend gold mining business, such as LSTG and FGLD.

Allezoe Medical (ALZM) is giving it another go now that its stock is down 80% from the lofty highs achieved during its last Pump & Dump campaign back in March.  Insiders sold a lot of stock back then and have probably only now run out of beer money.  Hence the new campaign.  With 92 grand in the bank and losses and debts in the millions, needless to say, we are not a fan.

Tout,OTCPicks.com, is attempting to re-energize its campaign on GreenCell (GCLL).  This is one that the touts can't seem to give away as nobody is touching it with a 10ft. pole.  Of course with $4,000 in the bank and a $25 million market cap, why would anybody be interested?

Since Tuesday's close: 

TopStockPicks.com has been promoting POTG in conjunction with a new, but repeat Pump & Dump campaign. 

EmailStockPicks.com has been promoting CGFIA in conjunction with a new, but repeat Pump & Dump campaign. 

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

RisingPennyStocks.com has been promoting TNRI in conjunction with a new Pump & Dump campaign.  

ContrarianPress.com has been promoting EMPO in conjunction with a new campaign.   

TheGreenBaron.com has been promoting CHWM in conjunction with a new Pump & Dump campaign.   

WhisperFromWallStreet.com has been promoting DTRO in conjunction with a new Pump & Dump campaign.   

ClubPennyStocks.com and at least 1 other paid tout have been promoting ALZM in conjunction with a new, but repeat Pump & Dump campaign. 

EpicStockPicks.com has been promoting IKCC in conjunction with a new Pump & Dump campaign.   

OtcPicks.com has been promoting OOIL in conjunction with an ongoing Pump & Dump campaign.  

FreeInvestmentReport.com has been promoting CSOC in conjunction with an ongoing Pump & Dump campaign. 

OtcPicks.com has been promoting GCLL in conjunction with an ongoing Pump & Dump campaign.  

StockMister.com and at least 3 other paid touts have been promoting AAGC in conjunction with an ongoing Pump & Dump campaign. 

PennyStockProfit.com and at least 2 other paid touts have been promoting WSHE 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. 

PennyStockNewsletter.info has been promoting BHRT 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. 

TopStockAnalysts.com and at least 3 other paid touts have been promoting NYXO in conjunction with an ongoing Pump & Dump campaign.