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Monday, October 24, 2011
Today's PUMPs & dumpS

We Thinks That The Rhino Human Resources Manipulators Doth Protest Too Much!

The Rhino Human Resources (IFHR) firestorm we brewed, heated up on Friday.  In newer emails, twin touts XtremePicks.com and OurHotStockPicks.com are subtly countering our suggestion of an illegal manipulation, by stressing the notion that shorts are keep this stock from running away, even though we showed that there is no stock available to short.  At the time of this writing, Interactive Brokers, the biggest provider of shorting services in the penny stock market, lists zero shares of IFHR available to short.  This doesn't mean that there are no shorts out there, some market makers may be temporarily means that shorting is not what is keeping the share price from irrational exuberance. At a meager 39,000 shares traded on Friday, just how much "hammering" could the shorts have done? We'll know everything on October 25, when the short position report as of October 14 is released by FINRA.

If you read our piece, Anatomy Of A Pump & Dump, you'll find that this promotion meets almost every criteria of the definition of a Pump & Dump.  This whole, "I know something you don't know", attitude regarding a purported upcoming reverse takeover of the IFHR shell, along with the insane notion that one can chart a penny stock, especially one with no assets, makes this whole thing smell like a Pump & Dump.  And then there is the outright lie the touts perpetuate of claims of current filings with OTC Markets.  The truth is that the company has not filed anything in almost 3 years and no financials have been made public in almost 3 1/2 years, in spite of the purported attorney "opinion" letter that the touts offer as evidence.  One only needs to go to the OTC Markets website to see what has actually been filed.

We laugh at the touts' claim that they have not been compensated for their 20 day campaign on IFHR, during which they have disseminated at least 65 emails to their subscribers.  There can be no doubt that the touts have an agenda.  Perhaps the touts have front loaded stock for themselves and are using their position of influence over their subscribers to cash in.  Or are they in cahoots with company officers?

Speaking of officers, we received an email, purportedly from Ray Barton, CEO of IFHR.  We attempted to confirm the authenticity of the email's author, but we couldn't because (surprise, surprise), the phone number on file with OTC Markets is out of service.  Within a veiled threat of legal action (go ahead), the purported Mr. Barton claimed that full disclosure was imminent (you mean that it has not been released yet like the touts have said?), and that Mr. Barton is the only insider and it just so happens that he does not own any IFHR common shares.  Mr. Barton claims that he asserts his control of IFHR through his ownership of 50,000 preferred shares.  Preferred shares??????  Aren't those convertible into common shares?  Especially if one has control of the company, through them?  Oops!  There goes the concept of the low float the touts are trying to sell you.  Who knows how many common shares can be created from those preferred shares but conversion rates of 1000 for 1 or higher are not uncommon.   We will note that three year old filings claim voting rights for those preferred shares of 500 to one, so it would not be unreasonable to assume that those 50,000 preferred shares can be converted into 25,000,000 shares.  Yikes!  And just where do the touts get this crazy 7.7 million share float anyway?  We can't find any filing that says there is less 57,626,747 shares issued and outstanding.  Surely an forthright and upfront company like IFHR wouldn't conduct a reverse split without the appropriate filings, would they?  And if Mr. Barton has control through preferred shares; and if there is 57,626,747 shares issued and outstanding; and if Mr. Barton owns zero common shares; wouldn't the conversion rate of his preferred stock have to be more than 1000 to 1 in order for him to have control?  Questions, questions, too many questions.   One thing is for sure.  Any perceived low float is a mirage.

Finally, the purported Mr. Barton claims, "The activity in IFHR is as mysterious to me as it is to you. I don't know "extremepicks" [sic] or any of these guys.".  Really Mr. Barton?  Then why haven't you publicly refuted any of the touts' claims or disassociated yourself from their actions?

We'll be glad to forward the Barton email upon request.

Grid Cloud Solutions (GRDC) begins a new spam email Pump & Dump campaign today.  The stock is now trading 90% lower than it was at the height of its last spam campaign, so needless to say there were plenty of losers in that one.  OTC Markets has placed a warning on this one for lack of current information (what a shock), as it's latest quarterly financials are now two months overdue.  Do we even need to say it?

Speaking of illegal spam Pump & Dumps, Swordfish Financial (SWRF) is also the subject of a new campaign today.  This one is actually up to date with its filings, claiming $14K in the bank and $3.5 million in notes receivable, which we assume means loans promised. SWRF also lists $5.7 million in debt including over $1 million in court judgments resulting from 4 lawsuits filed in an attempt to collect on outstanding notes.  It seems that the company has a habit of not repaying the money it borrows, a pretty ironic quality in a company that is purportedly in the asset recovery business.  In the meantime, this company, which seemingly could be forced into bankruptcy by its creditors at any time, has a $5 million market cap

Hard to believe but there were actually some touts still left to bring on board to pump the 8 week old manipulation, Lone Star Gold (LSTG).  Sure enough, OTCEquity.com and her two sisters, have now begun to pimp this scam.  LSTG has been the classic sideways Pump & Dump in that but for a couple of short term exceptions, this stock has traded in a very tight range and opens today where it started back when the campaign started on August 15.  The insiders did not let this thing run away and supported it when it took a brief dive a couple of sessions ago, in order to keep current shareholders in line and encourage new shareholders to believe that it is not too late to join the party.  In the meantime, the insiders have made millions foisting their intrinsically worthless stock onto the public, aided by fraudulent campaigns suggesting that Goldcorp was about to takeover LSTG, even after Goldcorp emphatically stated that it had no interest in either Lonestar or its gold-less property.  Look for 10s if not 100s of millions of dollars in investor losses once this shakes out.  Those who have been sitting in this for several weeks without seeing gains, should now realize what is going on and get out while there is still some money left to count.  Bet on this fraud to show up in our Told You So segment sometime in the not too distant future.  For more discussion on sideways Pumps & Dumps, refer to It's A Pump & Dump.

Three additional touts have also been added to the Pump & Dump campaign of plant grower, Stevia, Inc (STEV) and it's no wonder.  Investors who jumped into this zero revenue company with a $55 million market cap, are already suffering through 15% losses since the campaign began two weeks ago.  We don't think it will take long for this campaign or the share price to fall apart, as an overpriced horticulture play lacks the sexiness of a phony gold play.

Since Friday's close: 

TooNiceStocks.com has been promoting TPIV in conjunction with a new Pump & Dump campaign.

Illegal spam emails have been reported been promoting SWRF in conjunction with a new Pump & Dump campaign. 

Illegal spam emails have been reported been promoting GRDC in conjunction with a new, but repeat Pump & Dump campaign.
 
QualityStocks.net has been promoting VSTA in conjunction with a new promotion.

HotShotStocks.com has been promoting OTHM in conjunction with a new promotion.

SuperStockPlays.com has been promoting IKKC in conjunction with an ongoing promotion.

HotStockProfits.com has been promoting SRRL in conjunction with an ongoing promotion. 

ClubPennyStocks.com and at least 2 other paid touts have been promoting SPOW in conjunction with an ongoing Pump & Dump campaign. 

OtcMarketBulls.com has been promoting ECIT in conjunction with an ongoing Pump & Dump campaign. 

StockCastle.com and at least 2 other paid touts have been promoting EMBA in conjunction with an ongoing Pump & Dump campaign. 

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

StockGoodies.com has been promoting NXOI in conjunction with an ongoing Pump & Dump campaign. 

JuicyStockPicks.com has been promoting ITNS in conjunction with an ongoing Pump & Dump campaign. 

PennyStockAlerts.com has been promoting IWEB in conjunction with an ongoing Pump & Dump campaign. 

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

StockGuru.com has been promoting NBRI in conjunction with an ongoing Pump & Dump campaign. 

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

BedfordReport.com has been promoting NYXO in conjunction with an ongoing, long term Pump & Dump campaign. 

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

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