the OTC .today

Thursday, October 20, 2011
Today's PUMPs & dumpS

Eco Ventures Group Insiders 
Look To Cash In On "Maybe" Financing

Eco Ventures Group (EVGI) is failing miserably with their newest Pump & Dump campaign as shares are down 25% since the promotion began last yesterday.  According to latest financials, the company has $900 in assets and $600K in debt, although it has since reported signing contracts which will supposedly bring in revenue.  What we don't like is the delays on the purported $15.3 million in financing that the company claims to have committed to it.  On September 12, the company had announced the funding as a three year loan, with the first tranche to be received on September 22.   On that date, the company announced that the funding would not be consummated as a loan but through a purchase agreement of preferred stock.  No receipt of actual cash, as was previously promised for this date
was announced.  Then on October 13, the company announced that the funding date was extended to October 28 for reasons that sounded pretty cockamamie to us.  In the meantime, the PnD was commenced to capitalize on the news of the supposed influx of funds.  We think it would be foolhardy to believe anything, and consequently invest in this company, until the actual cash is received by EVGI.  It wouldn't be the first time that a promotion was built on promises, only to get a big fat "sorry, but..." at the end of it.

Another thing we can't seem to reconcile with respect to the EVGI funding is the claim that the funder will end up with 20% of the company through the conversion of the preferred stock to 11,760,000 common shares.  How is this 20%?  According to the company's own 8K filed on July 26, 2011, fully diluted, the company current has 78,395,515 common shares outstanding, once the existing convertible debentures have been converted.  If 11,760,000 shares are to be issued to the new funders, that would only represent 13% of the company.  Even if the 11,760,000 were to come out of the existing 78,395,515 common shares, 11,760,000 would only represent 15% of the company.  Something doesn't add up.  And by a lot.

It's hard to imagine how this company can justify a $32 million market cap.  This is EVGI's second go at a PnD.  The first go around began back on September 8 and investors back then took as much as a 50% haircut.  We expect more of the same until EVGI can show that something other than promises have been delivered.

Alumifuel Power Corp (AFPW) has begun a new campaign to divest insiders of some stock and according to company financials, it's the best way for these guys to make some money, because the company sure isn't.  A good chunk of the almost half billion shares that are outstanding in the company have traded in recent days. For some reason, the public has had somewhat of an appetite for this company with $8700 in the bank and over $2.5 million in debt.  Perhaps it is because the company recently reported a contract to deliver a PBIS-2000 Portable Balloon Inflation System to the Air Force Special Operations Command.  The system generates hydrogen to fill weather balloons, not exactly a product that gets our juices flowing.  The problem is that we have no idea about the dollar size of the contract or the net proceeds that will be realized by the company.  All we have is an impressive sounding bit of news that looks more like fluff than significant substance.  Still, it seems to be enough to generate some interest in the stock and provide an opportunity to cash out while leaving others to hold the bag.  We wouldn't be one of them.

Max Media Group (MXMI) gives it a go for the first time since June, when we stopped their efforts at a Pump & Dump campaign that invoked illegal tactics, including mailers and spam which did not identify the source of the financing of the campaign.  After we revealed that "mistake", MXMI quickly had its pimps correct the "oversight".  The touts' call for a 700% share price increase was trumped by a 30% decline on the first day of the campaign amid meager sales of stock.

Since the June campaign, MXMI bag holders have been nursing a 60% loss in their investment and while some of that may be recouped in this campaign, we expect that it will fizzle out as quickly as the last campaign did and we hope that old investors will pare their losses while they can.

According to old financials filed for March 2011 (new ones are way overdue), MXMI had almost 200,000,000 shares outstanding but only 34 million freely tradeable.  We're guessing that the other 166 million has now become tradeable and the insiders are looking to foist them onto the public.  Hence the new Pump & Dump campaign.  We'd also bet that a lot more of the 750,000,000 shares that is authorized have now become issued and outstanding.  Those March financials also listed zero cash in the bank and almost zero revenues and since newer financials are so late in coming, we are guessing that hasn't changed much, certainly not to the good.  We'd use the old adage of "once a bad investment, always a bad investment".  We say "nyet" to MXMI.

In regulatory action, the SEC has suspended trading in ADS Media Group, Inc. (AMGU), American Enterprise Development Corp. (AEND) and Arcland Energy Corp. (ACLY)

Since Wednesday's close: 

MinaMarGroup.com has been promoting ANDI in conjunction with a new Pump & Dump campaign. 

PennyStockLocks.com has been promoting CRPZ in conjunction with a new promotion. 

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

PennyStockExplosion.com and at least 1 other paid tout have been promoting CNOZ in conjunction with a new, but repeat promotion. 

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

BestDamnPennyStocks.com and at least 4 other paid touts have been promoting EVGI in conjunction with an new, but repeat Pump & Dump campaign. 

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

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

GreenGainers.com has been promoting EMBA in conjunction with an ongoing Pump & Dump campaign. 

StocksThatMove.com has been promoting ELAY in conjunction with an ongoing Pump & Dump campaign. 

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

WhisperOnWallStreet.com has been promoting SGAE in conjunction with an ongoing Pump & Dump campaign. 

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

PennyStocksFinder.com has been promoting FLRE in conjunction with an ongoing 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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