the OTC .today

Thursday, October 13, 2011
Today's PUMPs & dumpS

Seven Arts Entertainment Makes a Deal With The Devil To Try and Save Its NASDAQ Listing

Unfortunately, as investors in Seven Arts Entertainment (SAPX) are discovering, it's nearly impossible to make heady profits in the"B" movie game or by investing in the stock of companies who produce them.  Like so many other movie production houses before it, share prices have disintegrated since the company went public just under 3 years ago, on promise shown from profits from video sales of "Noise" starring Tim Robbins and Bridget Moynahan, both stars whose box office draw is on the decline.  Well the profits continue to come in, albeit on a decline, but the realization of investors that they personally are not really in the business of "big" Hollywood, combined with the past attack of the shorts, has sent shares reeling.

Yes, contrary to the position we usually take, we say there were shorts in this stock, but after all, this is the NASDAQ, where short positions are much easier to take and restrictions are less cumbersome.  While the current short position is reportedly small, we think it is likely to increase in the next few days on the heels of the current promotion.

Since those initial "head in the clouds" days, the stock has been in a straight line decline.  Some investors are suffering through as much as 80% losses. Just two years after first going public, shares have already been reverse split 1 for 5 and another consolidation seems inevitable, especially if SAPX has any hope of maintaining its NASDAQ listing beyond the extension already granted to the company to get itself into listing compliance.

In its effort to maintain its NASDAQ listing, the company has made a deal with the devil.  It has jumped into bed with the same unscrupulous touts who pimp the frauds and ponzi schemes that is usually their bread and butter.  Serious investors will find this makes SAPX even more difficult to take seriously as an investment, especially since management should have already learned that any share price increase the touts can facilitate is always only temporary.  Have the insiders thrown in the towel and simply decided to cash in their stock while they can, or are they making a sincere attempt at getting the share price back into NASDAQ compliance?  We think it doesn't matter what their intent is.  The share price is doomed to destruction and while flippers may find it profitable to play this stock on swings such as the one experienced in the last two days, the use of the stock pimps to promote the stock, seals the company's fate. 

Since Wednesday's close: 

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

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

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

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

StockHaven.com has been promoting MDRM in conjunction with a new Pump & Dump campaign.

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

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

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

PennyStockLocks.com has been promoting FHWY in conjunction with an ongoing Pump & Dump campaign. 

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

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

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

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

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

ShazamStocks.com has been promoting MCVE in conjunction with an ongoing Pump & Dump campaign. 

VictoryStocks.com and at least 8 other paid touts have been promoting AERN in conjunction with an ongoing 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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