the OTC .today

Wednesday, February 1, 2012
Today's PUMPs & dumpS

The Rhino Human Resources Manipulation Redux
The Touts Take Part In A Wife Swapping Party

Rhino Human Resources (IFHR) is undergoing another no news Pump & Dump, as EpicStockPicks and its twin sister, StocksGoneWild begin pimping the empty shell, on the premise that the company put out a not-so-coincidental press release, which stated that it is look for a merger candidate.  What the heck kind of news is that?  It's not. The press release even states that, "...the company cannot verify whether or not it currently has a candidate in mind...".  In other words, there is no merger, at least not yet. Now why put out this kind of unprecedented no news?  Why to give credence to a Pump & Dump of course.

This is not the first such campaign that IFHR has undergone.  We put a halt to last fall's plan that IFHR and "unpaid" tout, had concocted, by revealing the unscrupulous plans through a series of alerts, which can be accessed by click here, here and here.  Unfortunately, while we saved an untold many from losses, we weren't fast enough to prevent the stock from spiking to 25 cents, resulting in more than 75% losses to quite a few ina matter of a couple of weeks.  In true Pump & Dump fashion, Xtremepicks decided to invoke short positions as the reasoning behind the failure of the PnD, but we also disproved that notion within our third alert on the matter.  There was almost no short position.

There is an amusing anecdote in all this.  As we began to reveal the initial scam to our readers, we received an email from from IFHR CEO, Ray Barton, raft with objections, denials and threats:
"Hello there. Thought I would just drop in and tell you some interesting news.

We here at IFHR are about to put out our full disclosure bringing the company up to date on all it's filings. What will you will find in that disclosure? You will find that there is only one insider...ME. Do you know how many shares of common I own? and have ever owned of IFHR? 0! Yes...0! I control the company with 50K shares of preferred with 51% voting rights. -Not a single person owns more than 5% of IFHR stock that I am aware of and none of those are insiders, nor do I even know them. -We have not issued a single share in over a year. You have made some very libelist statements and as a retired law enforcement officer, I thought it my duty to let you know.

The activity in IFHR is as mysterious to me as it is to you. I don't know "extremepicks" or any of these guys.

Filings will be out aaaaaaaany day now. They will tell all the details. Details that are interestingly the opposite of everything you claim to "know". 

have a nice day! Oh, and good luck to you!

CEO of Rhino Human Resources (IFHR)"
Shocking as it may seem, the retired law enforcement officer never followed through on his inferred threat of retaliation against us.  And even though the [trading] activity in IFHR, was a "mystery" to him, Mr. Barton never felt a duty to save the public from harm, by either issuing a press release refuting the Pump & Dump and the accompanying emails which were full of lies; or, investigate the source of the Pump & Dump campaign.  Interesting.

And now we have this new campaign, to which Mr. Barton, we're sure, will just as vehemently plead ignorance.  Interesting.  According to Mr. Barton nobody owns 5% of the just over 7 millions shares claimed to be issued and outstanding and that he controls the company through convertible preferred shares.  Well then seriously, who would have enough stock to warrant financing of a $35K promotion?  And isn't it interesting that the StockGoneWild email was received within minutes of the IFHR press release, which, by the way, was only disseminated through the OTC Markets Disclosure and & News Service and not through any of the wire services typically used to widely disseminate such "important" news.

So now we are to believe that someone who owned less than 375,000 shares, which would currently be worth $30,000, waited for a press release by the company, by watching the OTC service and within minutes was able to arrange and finance a promotion to the tune of $35,000 and which began sending out emails only seconds later.  Uh huh. Sure.

So why would Mr. Barton possibly be interested in such a campaign?  Well for one thing, he has already stated that his preferred shares would give him 51% control, which, if true, means that he only owns half a shell.  That shell might fetch him $250K - 350K in a sale.  On the other hand, if he did clandestinely own some free trading stock, or could possibly short against his preferred shares (which we are not sure he could do), he could possibly raise some considerable cash before selling the shell.  As we've seen with this stock before, a company with such a low float can easily have its share priced increased threefold.  And don't forget, that as the only Board member, he could always award himself more stock in lieu of being paid for services.  You know, for the kind of intensive work required of a dormant shell's CEO, that is usually deserving of a salary equal to that paid to the President of the United States.

The SEC defines a Ponzi scheme as,
" investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity."
which collapse because,
"With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue. Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out."
The SEC's discusses a Pyramid scheme as,
"...participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.
The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse. At some point the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and many people lose their money."
We've long maintained that Pump & Dump schemes can be described as either classic Ponzi or Pyramid schemes.  The end result is always the same.  Investors who get in at the beginning might make money, while investors who come in later are guaranteed to lose money.  These Ponzi/Pyramid schemes don't have the lifespan of those that are managed by someone who takes a cut off the top, like say a Bernie Madhoff.  These schemes fall apart quickly because not only do the later buyers have to compete with profit takers (assuming the share price went up at all), they also have the insiders who are dumping to contend with.  That is just way too much selling coming up against the buying and the PnD is doomed.

Let's take a look at just a few of today's examples of "wife swapping", intended to extend the life of some if the bigger the Ponzi/Pyramid schemes currently ongoing in the penny market.  In the interest of saving space, I am going to use the abbreviations that we've assigned to the touts, rather than show the entire name.  The legend for these abbreviations can be referenced by clicking here.

MP and PSD are newly touting PLPL which was previously touted, at various times, by PCR, SRR, SLL, SB, PSL, EO, QOT, BTP, HOT, APH and SM.

PSP is now touting SNPY, which was previously touted by OE, BTP, QOT and WSP.

It's TNS's turn to tout FROG which was previously touted by  TNS, GSR, PSB, TBR, OP, QS, SHO, SR, BE, PSF, SCR, TGB, SG, HOT, PSX, IS and SST.

Today, it's EO, OE, QOT and BTP's turn to tout HRID.  Yesterday it was SM, SR, SHO, PSF and BE's turn.

In the case of NSRS,  almost every tout was slowly brought into the fold, and now we have them all pounding out the same preposterous emails making ridiculous prognostications, at the same time, several times per day.  NSRS has become a sideways PnD, churning within a tight share price range and with lower volumes than at the beginning of the campaign. Because the insiders are sitting on the offer and perhaps supporting a lower bid, the share price stays within the top of the range and does not give potential new buyers the illusion that they've missed the boat.  As soon as the insiders will be out of stock to sell or the shareholders get tired of the stagnant share price, we will see this go into the single pennies (or less) very quickly.

...and on and on.  This is how the penny's work. Every tout takes there turn at bringing new suckers into the scheme to offer prolonged support.  When one subscriber list has been exhausted, the pump moves on to the next subscriber list, until every potential penny player has been exposed to the PnD.  Once all the subscribers have been exhausted or if the insiders have run out of stock to sell, the Ponzi/Pyramid scheme collapses.  Guaranteed.

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