the OTC .today

Tuesday, January 10, 2012
Today's PUMPs & dumpS

This FROG Is Guaranteed To Croak
and
Is Calton (CTON) Xtremepicks New Stink Bomb?
 also: THWI, STEV, FLPC
 
It took the touts' recent ridiculous insinuation that Frogads, Inc (FROG) is going to put Craigslist out of business to finally make us take a look.  In fact, FROG looks like a hastily slapped together poor cousin to Craigslist and we find the website significantly more difficult to maneuver. But that's nothing compared to what we are about to reveal.

Revelation of this obvious con, can be made when looking at the inferences the touts are making of massive revenues to be realized by FROG.  For example, look at the following series of paragraphs:

FROG, my friends, is happy to wallow in the cash Craigslist is missing!

Just one trial banner ad about a year ago when FROG was just starting out netted them close to $50,000.

And FROG just told us yesterday that it's served up 1.5 MILLION ads since!

There is a lot of deception going on here.  From the second sentence, a casual reader might think that the tout is saying that FROG sold a banner ad for $50K.  However, by putting this sentence in its own paragraph, the tout cleverly hid the fact that he was talking about Craigslist getting $50K for banner ads at the time FROG was just getting started. Then in the third paragraph, the tout is attempting to give you the impression that FROG has sold 1.5 million $50K ads. No, no, no.  Those 1.5 million ads (if that number is even true) are free ads, just like the hundreds of millions of ads Craigslist posts for free.

The truth about FROG is found in their financials and those say that this company is a long way from Craigslist.  At last report, the company had $65K in cash and just under $9K in equipment (read: computers).  We're guessing that Craigslist has just a little more.  In the meantime FROG owes almost $160K and has never listed any revenues  (so much for the smoke and mirror $50K banner ads).

The real concern about FROG is that the 90,000,000 shares issued and outstanding gives this company a ridiculous and unjustifiable market cap of $30 million.  What's even more alarming is that just prior to the December 14, 2011 start of the current Pump & Dump campaign, company founder and President, Julius Spitari owned every single share of stock.  Still not getting it?  Then we'll spell it out for you.  This is a blatant and in your face Pump & Dump of the President's stock.  There is no attempt at hiding that fact.  The company's latest 10-Q filing makes it clear.  Julius Spitari is getting rich with the public's money.

We also found a very disturbing report from InvestorGoodies.com which took a look at traffic at the Frogads.com website and caused us to question even the minimal success being claimed.  We encourage you to look at it as well by clicking here.

Tout XtremePicks.com and its sister OurHotStockPicks.com have found the shares of another shell to dump onto the public in Calton, Inc. (CTON). The front loading pimps are not even calling the company by its proper name, using the proposed name change to Second Street Capital and the required information sheet, which was way overdue and finally filed, to give the newly reporting shell some cache.  Well anybody looking at the stock knows that FINRA is still calling this Calton and that XtremePicks is all about smoke and mirrors.

The last time that XtremePicks.com pulled a stunt like this was with Rhino Human Resources (IFHR), back in the fall when they used the tired old excuse of short positions to explain the stalling of their front loaded PnD.  We blew the whistle on that game in several alerts we issued, which you can access by clicking here and here and culminated with a big "Told You So" here.  Predictably, IFHR has not come through with the reverse takeover and great things to come that XtremePicks.com prognosticated. Nor was there any significant short position, leaving dupes who bought the pimp's stock holding the bag with better than 75% losses and no one to sell to.

Now all this having been said, we are not saying that there is anything wrong with CTON per se.  We don't know enough about the company (yet) to determine that.  What we do know is the XtremePicks.com has self serving intentions and we wouldn't be surprised if CTON was a long way from home.

The Pump & Dump campaign on First Liberty Power (FLPC) is re-energized today with the addition of half a dozen new touts to the campaign.  This is a continuation of the second PnD in the last 4 months, one that has seen losses for some of over 50% since the current campaign began last month.  Those who got in during last spring's first campaign are now down 80% and have been subject to significant dilution, as the number of shares issued and outstanding have increased by 12%.  In the meantime, one must wonder how much progress the company has really made over the last nine months, other than lining the insiders' pockets, of course. While liabilities have increased, there has really been no increase in asset value and cash in fact is being burned.  In the meantime, the company has not identified any discernible value in any property they are exploring and, in fact, states in their latest press release, that no further work will be done before the spring.  Hardly anything to get excited about here, especially in that latest press release, issued, as always, to coincide with the latest slew of promotional emails.  Pass. 

They're trying it again, with Thwapr (THWI), a miserably failing Pump & Dump that last month created 75% losses in under a week for those that bought in at the start of the current PnD.  A grand total of less than $7 million worth of stock has traded in the last month and most of that was sales by the insiders.  It's hard to imagine anybody getting excited about a 4 year old company with only $11K in the bank, especially when you consider that there is 36 million shares of freshly minted S-8 stock to be dumped onto the market.  If that fact alone doesn't wane your interest then we advise you to take a look at our recent advisory on THWI which you can access by clicking here.

They keep trying with 3 month old Pump & Dump subject Stevia, Inc (STEV), an issue that has created millions of dollars in losses over that period of time and has surprisingly not completely fallen out of bed yet.  Of course those that are minus better than 50% of their money might argue that point.  We think that insiders are supporting the stock just enough to keep some higher priced bag holders interested in averaging down.  In between the latest two financial reports, 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 insiders' stock is being offered cheaper than ever in the 60 - 70 cent range, it will get even cheaper as the company is issuing new private placement shares at 25 cents. Before investing, be sure to read our previous advisories by clicking here and here.  Better yet, just stay away from STEV.

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