the OTC .today

Monday, January 23, 2012
Today's PUMPs & dumpS

AvWorks:  Liar, Liar, Pants On Fire
SNPY: Don't Be A Hero
Fresh Traffic Group's Fresh Pump & Dump

The touts are going to have to do a better job of coordinating because their agenda for Monday is calling for the collective pimping of a ridiculous 20 penny stocks, including 14 new campaigns, eleven of which we have not documented in the past.  How much money do these guys think that the suckers have to throw away at one time?  We think that a lot of the plans to dump these intrinsically worthless stocks are going to end up as being wasted efforts.

We start today with a look at AvWorks Aviation Corp (SPLI) who
recently went public by way of reverse merger.  Our first warning sign is that it is being promoted by criminal tout, (PSP), whom as we have pointed out time and time again, will say anything to make a buck, including pimping the empty shells of companies that are out of business or bankrupt.   We detailed one such scheme regarding this tout's pimping of CAPB, which is a must read and can be accessed by clicking here.

In the case of SPLI, PSP touts the purported current customer list which,
"reads like a “Who’s Who” of the aviation industry: Boeing Commercial Aircraft Seattle, Boeing Training and Flight Services, Moog Aircraft Group, Moog Holland Aircraft Service, Texas Aerospace Services, Flightstar, Mid America Aerospace, Woodward HRT, Mission Support, Inc., and L-3 Communications Integrated Systems."
We agree.  That is a Who's Who of the aviation industry.  But we can't help but wonder how it is possible for a company with such a customer list to have contractual relationships only worth $165,000 and net assets of only $34,505, this according to the SEC 8-K filing which formalized the reverse takeover.  Furthermore, we wonder why SPLI hasn't made hay of these supposed relationships themselves.  You see no mention of these customers anywhere in any press release.  Wouldn't it be of interest to the public if these relationships actually existed?  A public statement with details of existing contracts would certainly make for more permanent interest on the street, than a few words from a tout with a reputation for lying, whose only goal is to create a temporary increase in trading volume and share price.

Following a series of forward splits, share cancellations and share issuances, SPLI now has 252,310,000 shares issued and outstanding.  At Friday's closing price of 13.9 cents, the market cap is $35 million.  With just under $200,000 in assets, including the aforementioned contractual relationships, we wonder who will be foolish enough to bid the share price up.  Or for that matter, buy it at its current price.  Pass.

After failing to generate a single dollar in revenue in over three years as a Chinese credit card processing service (how hard is it to start up this business anyway?), Sino Payments, Inc. (SNPY) goes into the Pump & Dump business today.  This new campaign to dump insider stock is hanging its hat on the acquisition of TAP Investments Group, which according to tout and its sisters,
"provides customer-centric solutions for the retail industry. They enable retailers to offer a consistent shopping experience across all channels, all the time, enabling them to easily and effectively manage the customer lifecycle on a one-to-one basis. Their HQ is located in Hong Kong and have additional offices in Macau, Shenzhen, Guangzhou, Shanghai, Beijing and Manila."
Now it usually makes sense not to get yourself involved in something you don't understand, so we'll pose this rhetorical question:  What does TAP Group do?  Can anybody explain the above paragraph?  Didn't think so. And that means that staying away from SNPY does makes sense.

One thing is that is particularly disturbing about the SNPY proposition, is that even though a March 1 closing date for the merger has been projected, the pumping has begun now.  The merger is not fait accompli and we find it disturbing that a PnD campaign is premised on what is still a possible transaction.  Many of these types of proposed transactions seem to fall apart once the usefulness has been exploited through a PnD campaign.

Another caveat is that we only hear about the purported gross revenues ($4 million) that the possible TAP merger will add to the SNPY bottom line.  Notice how there is no mention of the net profits these revenues will generate.  Furthermore, there is the caveat of the unknown, as there is no mention of what the TAP merger will cost SNPY, although it is likely to be a whole bunch of stock.  We suggested that you read the perils of caveat filled propositions, which we address in our article, It's A Pump & Dump.

With the current 72 million shares issued and outstanding in SNPY representing a $4 million market cap and considering the fact that the company has yet to generate its first dollar, we think that investors are playing with fire here.  And remember that if the TAP merger does go through, many more shares are likely to be issued, probably enough to effect a reverse takeover, meaning that at least over 100% dilution, or a doubling of the number of shares is coming.  We could even see a tripling of the number of shares or more.

Looking at some of the newly regurgitated campaigns, we note that Fresh Traffic Group (FTGC) is spending the weekend aggressively trying to push its garbage onto the street, having brought at least 7 touts into the fray.  Its last effort, back in September consisted of a spam email campaign that created 90% losses within two weeks.  The company cried some crocodile tears over the resulting OTC Markets assignment of a caveat emptor status and our reprimanding alert.   They also issued the obligatory, "we had nothing to do with it" email, but now finds it appropriate to take part in a paid promotion, with no accompanying news.  We expect news to be released before Monday's open to act in concert with the PnD, which would seem to indicate that the touts knew something before the rest of us did, a no less despicable and illegal act than the dissemination of spam emails.

Not surprisingly, FTGC's fundamentals are a joke.  The company reports having $42K in the bank, $168K in debt and a net loss of $23K for its last report quarter resulting from revenues of $193K, which the company calls "significant consolidated revenues".  Well if those are significant revenues, then we'll suggest that the company is significantly overvalued at its current market cap of $1.5 million.

The insiders at Geopulse Explorations (GPLS) have decided to see if they can do a better jump of dumping stock onto the street, as they ramp up their first PnD campaign since the mid August efforts.  Bag holders from that campaign are currently enjoying 90% lighter wallets.  We warned you about the caveat filled press releases that accompanied that campaign in a past alert and it appears that our concerns were well founded.  The press release that preceded this new campaign has nothing of significance to report.  The previously announced acquisitions of property that might or might not have value are rehashed, but since the original announcements, there is no report of the completion of financing or exploration.   Additionally, the company is broke, listing its only asset as $10K in cash on top of $40K in debt.  GPLS's financials give no asset value to the acquisitions which have supposedly been completed.  Does this make the company worth the $6 million market cap it currently carries with its 90% discount?  Obviously not!  We'd expect another 90% discount to be forthcoming.

Seven Arts Entertainment (SAPX) is conducting its umpteenth Pump & Dump as insiders have thrown in the towel on the inevitable downgrading of the company out of the NASDAQ market and into the bulletin boards.  The share price has been on quite a roller coaster in conjunction with the past campaigns and the play has created profits for some but significant losses for many more.  It is only a matter of time before this thing trades in the single digit pennies (assuming that yet another reverse split is not forthcoming) and when that happens it will be quick and painful for those who have played it once too often.  We have been over this bad deal before, so rather than state it all again, we'll just point you to our past missive on SAPX, which can be retrieved by clicking here.  We'll also point you to the fact that the company appears to be almost insolvent.  As of the last reported quarter, which ended on September 30, the company had $49K in cash and $12.6 million in debt.  As the company bleeds cash, we don't expect the financials for the quarter ending December 31 to be any better and, in fact, expect that this new PnD campaign may be an effort for insiders to cash in some stock before the bad news is made public.  At a minimum we don't see how the company avoids insolvency without issuing boatloads of stock.

If you haven't see Frogads (FROG) before and are intrigued by today's preposterous statement by the touts that, FROG is "Better than Craigslist​, eBay, and Google", then we suggest that first you give your head a shake and then you read our previous alert on the subject, while you consider that since the campaign on FROG began on December 14, share prices have slipped as much as 40%.

Back to main page