Amwest Imaging: A Scam Run By Scum
The Regurgitation of Auri and Modern Mobility Aids
The Regurgitation of Auri and Modern Mobility Aids
Purported cloud computing company, Amwest Imaging (AMWI) has been a heavily played issue over the last couple of days on a Pump & Dump campaign we feel is probably just in its infancy. We can understand why investors find this company so sexy. After all, it has $317 in the bank and only 535,600,000 shares outstanding, giving it a market cap of only $100 million. The company has yet to earn its first penny in revenues and its business description is so confusing with its gobbledygook that it has to be a great investment. And yes, our tongue is in our cheek as we write this.
AMWI was designed to be a Pump & Dump right from the get go. Looking at the distribution of the stock (post forward split), at the start of this month, every single share of the 535,600,000 outstanding was owned by insiders. Company founder and former President Patrick Moore owned 234,000,000 million of those shares, now worth $50 million and for which he paid $9,000 back in June of 2010. The next 104,000,000 shares were sold to 25 investors in order to bring up the number of share holders to the number required by the SEC. These 25 shareholders paid 1/26 of a penny per share for a total of $40,000. That stock is now worth $20 million. Then just last August, in a move designed to make Patrick Moore seem distanced form the company, 28 year old Jason Gerteisen took over as President. He was promptly issued 26 million shares of stock, with a value of about $5 million. Finally, 157,560,000 shares were issued to the shareholders of Instant Website Technology, Inc, in an acquisition designed to give AMWI the appearance of an asset. The acquisition is valued at approximately $30 million and we'd bet that Instant Website has never earned $30,000.
A look at Instant Website Technology, Inc, further proves that that this entire scheme is just that. According to SEC filings, Instant Website is controlled by Phillip Keuber, a participant in several penny stocks schemes in the past, including previously profiled Pump & Dump scheme, Writers' Group Film Corp (WRIT). Interestingly, WRIT and AMWI share the same Beverly Hills address, along with Keuber's many other penny stock frauds. Guaranteed that investors in AMWI will become bag holders, just as they have with Keuber's other ventures.
In the meantime, the insiders of AMWI, who we will remind you owned every share of stock at the beginning of the month, have already sold off at least $10 million in stock. And they will sell the rest without regard to the share price. After all it doesn't matter. They can always just start up the printing presses again. Or move on to the next sucker play.
Auri, Inc.(AURI) was at it again yesterday beginning a new campaign on the heels of just released quarterly results. Many who participated in AURI's last extended PnD, experienced 60% losses in their investment. We gave a good business-sensible argument as to why that would happen within several advisories and alerts, and probably saved many of our readers from themselves. While AURI is unquestionably a real business, one of the few that is the subject of a Pump & Dump, it is incapable of justifying its current market cap, never mind the inflated one it hopes to achieve through these campaigns.
For this AURI campaign, the touts hung their hat on a year to date increase in revenues of 65%. What they didn't tell you is that net losses increased over that same period by 283%. The number of issued and outstanding shares also increased by 50%, so not only did the increase in losses far out pace the increase in revenues, but there was tremendous dilution as well. The bottom line is that we have a company that loses almost $2 million a year, owes $800K and has a market cap of $25 million. No wonder insiders see a PnD as a way to get something out of this company.
Modern Mobility Aids, Inc (MDRM) is also taking another crack at a Pump & Dump, this time with unmitigated gall, as it has just filed a late notice for its quarterly financials. We saw this just the other day with Atlas Technology (ATYG) and on our recommendation, investors stayed away in droves, cutting the share price by 90% in just 4 days. As with ATYG, MDRM must not have very much encouraging to say if it finds it necessary to pump the stock ahead of late financials.
Looking at the annual financials filed just last month, and also late, MDRM had $182 in the bank and $120K in debt. The company reported revenues of $1,656 and losses of $158K and yet carries a $20 million market cap. Honestly, how do people buy into these shams? It should come as no surprise that those that took place in MDRM's last campaign a month ago, are now down about 35%.
Today we present a PIMP award, given to a tout who exhibits a disgusting display of stock prostitution, to HillbillyStocks.com, who yesterday morning sent out an email claiming a huge short squeeze was imminent on Louisiana Food Company (LUSI);
"I have a very, very special play fer all of you. It is tha SQUEEZE PLAY OF ALL SQUEEZE PLAYS! You have never been a part of anything like this play, I can assure you. If you take part in this play, you will remember this email n date forever. Tha gains that will materialize fer you will be enormous! Here are tha details: This company has a public float of less than 2 million shares n tha short interest is through tha roof with ova 9 million shares. I'm sure you know what that means. Tha demand will be so high that tha shorts will be forced to cover. This is NOT A FLIP PLAY!! Flipping this play will only kill tha run, n this mofo can n WILL run. I REPEAT....WIIILLL RUUUUUUNNN BITCHES!!!!!!!This is a BUY n this is a HOLD. This can eaaaaasily be a 10 bagger, n that... truly... is an understatement. Tha market makers will not know what hit them!"
Well surprise, surprise there was no short squeeze and in fact the stock was clobbered after a brief gap up on 30 times average volume. What happened to the short squeeze? Well it is important to note that you cannot have a short squeeze when there is no short position. That's right, HillbilllyStocks.com lied. According to OTC Markets, there is a zero short position. ShortSqueeze.com confirms this. How could there be a short position, anyway? On most days the stock trades less than 100,000 shares.
Now we don't know if LUSI insiders were the culprits here, or if this is a matter of a tout front loading, but one thing is for certain: this was a manipulation and the actions of a criminal.
Since Thursday's close:
TheStockFather.com has been promoting DKAM in conjunction with a new promotion.
QualityOtc.com and at least 4 other paid touts have been promoting MDRM in conjunction with an ongoing Pump & Dump campaign.
PennyStockExpert.com and at least 2 other paid touts have been promoting AMWI in conjunction with an ongoing Pump & Dump campaign.
BestDamnPennyStocks.com and at least 2 other paid touts have been promoting GDGI in conjunction with an ongoing Pump & Dump campaign.
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