the OTC .today

Thursday, December 8, 2011
Today's PUMPs & dumpS

ECRY Creates Instant eTears For Investors
also: Thwarting Thwapr

Current Pump & Dump subject eCrypt Technologies (ECRY) is a classic example of insider dumping at all costs.  Bids have been whacked ever since the campaign began on December 1 and continue to do so even as criminal tout, PennyStockAlerts.com takes the reigns of the pump this morning. 

ECRY's share price climbed slowly but surely, on increasing but light volume in the days leading up to the campaign.  However, once StockGuru.com issued the first promotional email, the whacking began in earnest and some investors are already enjoying 35% losses in just a few days.  We're wondering when people will learn to access the readily available information prior to buying stock in such overhyped crap.
 
ECRY carries an unconscionable $130 million market cap while listing only $53K in assets, $29K of that in cash.  Liabilities are listed at over half a million dollars, mostly in loans that we'd expect will eventually be turned into even more shares.  We also take no comfort in the $480 listed as revenues for the latest quarter, especially when considering that those robust revenues created $88K in losses.  It's no wonder that insiders wish to dump shares.  This stock has nowhere to go but down, down, down.

Speaking of garbage (we were, weren't we?), Thwapr, Inc's (THWI) third PnD of the year is well underway.  As near as we can figure, THWI claims to create video advertising for mobile phones, but that might be a simplistic summation.  It doesn't really matter though, because after being in business for 4 years, the company still only has 11 grand in the bank, other listed assets of $41K and liabilities of almost $2 million.  Revenues for the last quarter are reported at just less than $18K but are accompanied by a loss of $800K.  Since its inception in 2007, THWI has lost $21 million.  While the 54 million shares of common stock currently issued and outstanding give it an already overinflated market cap of $6 million, it is the 47 million shares of preferred stock, which are convertible into 300 million shares of common stock, that is the real elephant in to the room.  This gives the company a virtual market cap of a ridiculous $42 million.

If you don't believe that THWI shares are a bad idea, just ask those who stepped in during October's campaign and are now down 50%.  And with all that preferred stock ready to be converted at anytime (maybe in conjunction with this PnD campaign), shares are sure to be discounted even further in the coming weeks.

They're at it again with Caduceus Software Systems (CSOC).  Many who bought into last month's PnD and have seen as much as 60% of their evaporate in just 4 weeks, are wishing they had paid attention to our November 8 alert, at which time we explained why CSOC was a bad proposition.  In a nutshell, anything is worth what you pay for it, and CSOC plans to give away its software to 1000 medical practitioners on a trial basis, assuming the company can find that many who will take it for free.  The fact is that there are much bigger players in the medical records and billing software business (like a small company called General Electric for instance) and dozens of small companies have gone down the tubes trying to compete.  CSOC's unexplained $5 million loss in the June quarter doesn't make us feel any better either, nor does the continuing massive dilution.  From June to September, the number of shares issued and outstanding increased by over 25% from 219.8 million to 275.8 million.  While the drop in share price resulted in a reduction of the company's market cap to $9.7 million, it is still way over priced and we'd continue to pass even at these reduced prices.

The regulators are closing in on grand scheme, Fox Petroleum (FXPT).  The British Columbia Securities Commission has disallowed trading in shares in that province and we feel that this is only the first of many such orders the company faces in the near future.  As we have pointed out many times before, FXPT Grand Wizard, William Lieberman is no stranger to penny stock scams.  Beware!

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