the OTC .today

Thursday, November 10, 2011
Today's PUMPs & dumpS

$1.5 Million Financing Is Another 1.5 Million Reasons To Stay Away From Empire Post Media

Several new touts have been added to the current Pump & Dump being conducted on Empire Post Media (EMPM), a scheme which thus far has been met with lukewarm results.  16 touts are now pumping this garbage and one can detect a hint of desperation to create interest in this stock.  And it's no wonder.

The campaign, which was begun with a slew of  promotional emails in September followed by occasional refreshes, is doomed to create losses.  This is evident by the instant drops in volume and share prices whenever there is a lull in the promotional emails. Following the September emails, the share price dropped, with a loud thud, better than 50% as trading volume went to almost zero.

Now the touts are using EMPM's announcement of a $1.5 million financing to re-energize the campaign.  We say this announcement is exactly the reason you want to avoid EMPM.

Here's our problem.  While the financing has been publicly announced via a press release, the required 8K, providing details of the terms of the financing, has not yet been filed with the SEC.  This means that the company wants to benefit from the hype of the financing prior to releasing the details, indicating the probability of stock dilution and/or other unfavorable conditions.  This is a huge red flag.

Our other problem is with the fact that a company which has a market cap of $100 million makes hay out of a measly $1.5 million.  How in the world is EMPM worth $100 million anyway?  Annual revenues book at about $100K and the company reports $49K in the bank.  Furthermore, stock dilution has been rampant, seeing a 30% increase in shares issued and outstanding over the last year.

So far, $100 million EMPM's only announced project is "The Journey Beyond", a TV series looking at paranormal experiences which has been approved for a pilot but yet to be picked up.  The program, regurgitates childhood TV star Mackenzie Phillips as its narrator, which does nothing to lend credibility or woo audiences to the show.  These types of documentaries have a limited audience and the commercial success of a program that is not yet in the can is far from a certainty.  Maybe if the market cap was $100 rather than $100 million, we'd be more interested. 

Since Wednesday's close: 

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

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

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

OxOfWallStreet.com and at least 9 other paid touts have been promoting CSOC in conjunction with an ongoing Pump & Dump campaign. 

StockGuru.com has been promoting NECA in conjunction with an ongoing promotion.

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

XtremePicks.com and at least 1 other paid tout have been promoting BRYN in conjunction with a ongoing Pump & Dump campaign.

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

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