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Wednesday, October 12, 2011
Today's PUMPs & dumpS

Faltering Pump & Dump Campaigns Prompt Touts to Offer Desperate Excuses

In an attempt to save degrading share prices of recently new Pump & Dump campaigns, the touts are offering excuses and deception to try and prop up their clients' share prices and create new interest in the schemes they support.

The touts are using the "sneaky/dirty shorts" excuse as the reason for the second consecutive day of sell off in AER Energy Resources (AERN).  We have been telling you for days that this was going to happen in short order, as there is nothing to support this ridiculous market cap and the late-in-coming story is preposterous.  We say late-in-coming because the ridiculous notion of a joint venture worth $1.875 billion came after the PnD
began.  Prior to that, the company had not put out a press release in 8 years.  And if you're prepared to believe that a newly resurrected Pink Sheet company has its hands in a $1.875 billion, or for that matter million, joint venture, then we have some swamp land in Florida to sell you.  Sure as your born, whenever the "sneaky/dirty shorts" are blamed, you can bet that it's the insiders blasting out stock.  This deal shows several of the other signs of a Pump & Dump that we identify in our article, It's A Pump & Dump.  If you haven't done so already, or it's been a while since you've read it, read it now.  Learn from the mistakes than 1000s of others have made.

SatMax (SATM) which closed up 5% after gapping up 50% on a six tout effort, is hanging its hat on a $177K grant the company announced it had received from the Alberta government.  That such a paltry amount should be considered big news, certainly shows that this company is not worthy of what is at least a $4 million market cap, especially since the OTC Markets, which governs the Pink Sheets, has placed a caveat emptor warning on it due to a lack of current information, no financial filings and questionable promotions.

Tout, BeaconEquity.com, has changed its tune quite a bit, singing that Greencell (GCLL) is now "not breaking out but building a base", in an upbeat attempt at reconciling the stock's 2 day slide, amid an anemic response to a two month old PnD campaign, involving eleven touts.  During that time, the stock has traded a meager 1.2 million shares worth less than $700K.  It seems that very few believe that this company with $4,000 in the bank and a market cap exceeding $25 million is worth an investment here, no matter how hard the touts try to convince them otherwise.  We expect the "base building" to continue, only at much lower levels as the failed sideways Pump & Dump leads into insider bid whacking.

They're still trying to convince you that Legend Oil & Gas (LOGL) is a must have.  Touts are marketing insider shares, spreading the insane thought that a company with $150,000 in the bank and a market cap already exceeding $120 million, is somehow worth $360 million or even $1 billion on the acquisition of a Canadian producer of 300 barrels of oil per day.  The company announced that they would be paying $17 million in cash and  stock for the oil and gas producer and would expect to generate $3 million a year in cash flow.  That's cash flow people, not profits.  On cash flow alone, it would take almost 6 years to pay off this acquisition and that's assuming oil maintains its current price.  Of course the price of oil could go higher, but even if it doubles, so what?  It still doesn't make this company worth $120 million, never mind $1 billion.  These fact bear out to those investors who have booked 20%+ losses since the over two month old PnD campaign began.

The campaign on Empire Post Media (EMPM) is re-energized today as investors who first joined in are currently experiencing up to 45% losses.  The company is somewhat of a television production company, producing what we would classify as "B" programs, which would be of interest to relatively few viewers.  We would classify it's risk as similar to that of other "B" entertainment producers and Pump & Dump subjects, Writers' Group Film Corp (WRIT), 3D Eye Solutions (TDEY) and Takedown Entertainment (TKDN).  With $5,000 in the bank and a $20 million+ market cap, the stock hardly seems like a bargain.

Since Tuesday's close: 

PennyStockAlertCity.com and at least 3 other paid touts have been promoting DGHG in conjunction with a new Pump & Dump campaign.

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

ContrarianPress.com has been promoting EMPO in conjunction with an ongoing promotion. 

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

StockProfessors.com has been promoting EMPM in conjunction with an ongoing Pump & Dump campaign. 

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

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

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

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

OTCPicks.com has been promoting MVTG in conjunction with an ongoing Pump & Dump campaign. 

PennyStockAlerts.com and at least 4 other paid touts have been promoting RAYS in conjunction with an ongoing Pump & Dump campaign.

PennyStockNewsletter.info and at least 1 other paid tout have been promoting MCVE 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.

OxOfWallStreet.com and at least 8 other paid touts have been promoting AERN in conjunction with an ongoing Pump & Dump campaign. 

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