the OTC .today

Monday, December 19, 2011
Today's PUMPs & dumpS

The Unmitigated Gall

There's a whole slew of regurgitated Pump & Dumps on the touts' menu today and it is fascinating to read how they pat themselves on the back, seemingly oblivious to the pain and suffering these same issues caused gullible investors the last time they bought into these schemes.  To whit: is back at the front of the rotation to pimp some more Lone Star Gold (LSTG).  Since every other tout between here and Venus has already had a crack at this mess, it was time for Epic to "Put It Back On Our Radar".  Translation:
Epic got another 25 grand to shove it to people again.  This excerpt from their email says it all;
"One of our biggest performing alerts from early fall, LSTG is back in our cross hairs. And now that LSTG is trading at a significantly lower price than before here at .74, the profit potential could be much bigger if it returns to September's highs!"
Yes, its true, the stock performed well for a few days and some of Epic's subscribers did well.  What Epic doesn't tell you is that those that continued to buy off Epic's pump @ $1.29, got clobbered, as insiders Allvaro Vollmers, John Rhoden, et al. fed them all the stock they could handle.  Now with the share price at .74, those who haven't already bailed at a loss, are now down better than 40% on their original investment.  How is Epic going to convince those pigeons that the stock was one of the "biggest performing alerts". 

This scenario repeats itself with every Pump & Dump.  In order for some (including the insiders) to make money, many more have to lose money.  This is why Pump & Dump campaigns are nothing more than Ponzi schemes. 

Now so-called "penny stock trading experts" who claim to make a living out of trading penny stocks, will tell you it's all about timing.  Perhaps, but without the suckers who buy stock at the high, whether it is at a 1000% premium or 5% premium, timing is irrelevant.  

There will be more losers than winners with every Pump & Dump.

The worst part is that long term LSTG investors don't even have a chance.  And that is because the entire La Candelaria project is a scam.  The reason we know this is because LSTG insiders have been paying pimps to draw up fancy emails claiming that Goldcorp, one of the world's largest producers of gold, was about to takeover this dung.  Goldcorp themselves has publicly refuted this claim and all but called La Candelaria worthless.

Some of our previous and important advisories and alerts on LSTG can be accessed by clicking here, here and here, or type "Lone Star Gold" into our website's search box in order to retrieve everything we have ever written about it and keep in mind that there are investors who have suffered 50% losses while the insiders have lined their pockets.

Awesome Penny and its sisters try and salvage what they can out of the Amwest Imaging (AMWI) scam, with headlines like "The gift that keeps on giving".  With the stock @ 14 cents, we wonder if those that bought Phil Keuber's and Patrick Moore's stock @ $1.39 feel like it is the gift that keeps on giving.

Here are some other great quotes from the criminally negligent touts:   

"AMWI could come back to life and surprise us!"  Surprise???  Just two weeks ago the touts said this was going to 12 bucks.  Now coming back to life would be a surprise?  Have the fundamentals changed?  Or has the con just petered out?

"AMWI has been so good to us up until now."  Really?  It's definitely been good to the pimps and the insiders, but we doubt the bag holders would feel the same way.

"Those who didn't buy AMWI earlier for they thought it was "too expensive" can buy now for much less than last week that's for sure."  Well if that's the case, why did anybody buy at higher prices?  Why didn't the touts warn everybody to wait for these lower prices.  Oh and by the way, at a minimum $60 million market cap with $137 in the bank, this thing is still waaaaaayyyyyyyy too expensive.

We'll remind you that when this scam got started a month ago, the insiders owned every single share of stock.  In case you've been on another planet and haven't see our advisories and alerts on AMWI, click here, here and here or type "Amwest Imaging" into the search bar on our website to retrieve all of our feelings on the subject. 

Next Generation Energy Corp. (NGMC) is on its 4th campaign of the year, and every one of the previous campaigns has been a failure.  For some reason, Darryl Reed can't get anybody interested in buying his stock.  Those who bought into his "big push", back in August, are down better than 80% on their money.  Since then, dilution has been rampant with the number of shares issued and outstanding increasing by 160%.  With $13K in the bank, and $1.1 million in debt the company's revenues of $0, that's zero, don't seem to be able to support this operation.  This does not come as a surprise, as you will see by reviewing our past advisories and alerts by clicking here and here.

The two month old PnD on Mistral Ventures (MILV) continues with the addition of new touts to pimp this thing, including the criminal tout  This parent company of a homeopathic medicine developer had, at last report, $4600 in the bank and debt of $400K.  We're supposed to find quarterly revenues of $8,375 not only impressive but worthy of a $15 million market cap derived form the over 1 billion shares issued and outstanding.  Well we aren't and we don't and we think that the investors who are negative 85% since this campaign began, would agree.  El pump y dumpo!

On the other hand, lithium bandwagon jumper, New America Energy Corp (NECA), is a well thought out, sideways Pump & Dump, whose share price has barely moved in the month and a half this thing has been pumped.  Smartly, insiders are in no hurry to dump these shares so long as the street is prepared to slowly inhale them in the .35 - .40 range.  This smart strategy has enabled these insiders to line their pocket with a couple of million dollars without making instant losers out of the inevitable victims buying into this scheme.  The same can't be said for shareholders of First Liberty Power (FLPC), NECA's partner in exploration and currently the subject of its own ongoing PnD.  However, as with all sideways PnDs we expect the bottom to eventually fall out in NECA shares, once the street no longer has patience for a non-mover and the insiders resort to bid whacking.  We suggest that you refer to our article, It's A Pump & Dump, for more on sideways PnDs.

Not surprisingly, or unusual for an exploration company, NECA has no revenues.  It did lose $700K for the last reported quarter and carries a $15 million market cap, which is high considering the "project" is in its infancy and hasn't established that it owns anything of value yet.  It all adds up to a nice profit for President Rick Walchuk and his buddies who acquired this shell just a year ago.

Tout,, is still trying to convince you that Stevia Corp (STEV) is a good idea.  The grower of stevia plants used to make the stevia sugar substitute, is a ridiculously overpriced issue, that we told you would bring huge investor losses in an alert you can access by clicking here.  While the stock is not yet in the pennies, there are still plenty of investors who are suffering 40% losses in this two month old Pump & Dump.  In that time, the company's cash position has been cut by 70% and revenues have increased from zero to $1300.  That was an expensive improvement on revenues, as net losses have increased from $13K to $233K.  And while Bedford is trying to get you to buy the insiders' stock at $.75 - 1.00, the company is issuing new private placement shares at 25 cents.  With a $40 million dollar market cap, you would think that STEV was growing marijuana instead of a few stevia plants.

One Pump & Dump that is working out well (for now) is the 7 week old campaign of family owned and operated Sauer Energy, Inc. (SENY).  The share price is up about 40% (for now) since the inception of the extended promotion, although 20% off the recent highs.  We do have several concerns here, not the least of which is the validity of the audited financials, prepared by John Kinross-Kennedy, an accountant who has been "doing" the books for several schemes in the pats, including Jon Fullenkamp's tenure at Victory Energy Corp (VYEY).  That deal involved people who are awaiting sentencing for fraud convictions and Mr. Fullenkamp has had to settle with the new board who have spent the last two years attempting to straighten things out.  It is estimated that Fullenkamp got away with millions on that fraud.

At any rate, with only $75K in the bank, which is part of the $132K in listed assets, no revenues and a $1.3 million loss for the last fiscal year, it would be insane to try and justify the current $50 million+ market cap that SENY carries.

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