the OTC .today

Wednesday, January 11, 2012
Today's PUMPs & dumpS Big Lie
We have been meaning to address a situation that occurred over the holidays, while we were on vacation, and that is the promotion of London Pacific and Partners (LDPP).  The promotion of this junk by and its twin proves the scum nature of almost all touts who are paid to pimp pieces of garbage to the gullible.  While other touts pumped LDPP as well, it was these twins that particularly irked us, not that they care what we or you think anyway.

Prior to the December 29th pump, LDPP hadn't traded signifcant volume in ages, having gone through a reverse split and multiple issuances of new stock.  As always with these scams, that new
stock had recently become ripe (restrictions lifted) and needed to be dumped onto the street.  That's where the pimps come in to do their job, which is to con you into believing something that is not true.  Or at least in this case, half true and without telling you the other half.

In the case of LDPP, that half truth was the pumping email's claim that there was a float (number of shares held by the public) of only 19,403,307 shares.  The half that was a lie (or what forgot to tell you) was that the next day, more of the 93,845,130 shares that are issued and outstanding would be dumped onto the market and the float would increase significantly. That's what the touts had been hired to do: expedite the dilution (insider dumping) that would double the float.  And sure enough, almost 18,000,000 shares traded that day, followed by almost 5 million shares traded the next day.  We figure that the LDPP insiders netted at least $2 million from the PnD.

But that isn't what really gets our bloomers in a twist.  It was Epic's "in your face" email that very evening, in which they inferred that everybody made money, while in fact, almost every single trader lost money.  Surely, a lot of those losers must have felt stupid wondering why they had lost when Epic claimed that most didn't.  Well Epic just plain out lied.

In this email, Epic claimed that realistic gains of 300% were possible today.  Hogwash! Within three minutes of the open, LDPP shares traded at 4 cents.  There was only one trade, for 150,000 shares at 4 cents and we promise you that it was an insider who sold that stock.  Until that single 4 cent trade which took place at 9:33:08 am, a total of only 1.3 million shares had traded.  Absolutely, nobody made 300% on their trade, and, in fact, the sucker who bought that 4 cent stock, actually lost 70% of his money (if he held to the close) as the stock closed at 1.2 cents.

Following the single 4 cent trade, the insiders began competing with each other to whack bids.  Still 4 million shares traded between 9:30am and 10:02am, the last time LDPP would see a share price of at least 2 cents.  Every one of those 4 million shares lost at least 50% of their value within minutes.  The rest of the day, the stock churned between 1 and two cents and we suspect that much of that buying was from the holders of those initial 4 million shares looking to average down.  And since the stock currently sits with a bid of $.004, we'll go out on a limb and state that almost every single buyer of LDPP stock lost money that day.

Epic's suggestion that 66% was made by traders through the 5 million shares traded from 10:14am to 11:16am, that Epic refers to in its "mid day rally from .0105 - .0175", is also a farce.  First, one would have to assume that someone bought at the absolute low (.0105) and sold at the absolute high (.0175).  If somebody is out there who could perfectly identify that trading range, then he needs to start his own newsletter.  Secondly the forgotten suckers who bought the stock at .0175 lost money, as LDPP has not seen that share price since.  Is Epic suggesting that those poor shmoes were stupid for paying that price for the stock?  Or is it just tough luck for them?  Every one of the almost 18 million shares traded on December 29 and now owned by the public, has lost at least 60% of its value.

And there's the rub. For a trader to make money on these penny plays, somebody had to lose money.  There is always a high trade and it is impossible to predict when that is.  Do you think that the guy who bought 150,000 shares of LDPP at 4 cents thought he was going to lose?  Or how about those that bought .0175 stock at the height of the "mid day trading range"?  We guarantee that a regular penny player will get caught owning stock at the highs more often that not.  Anybody who says differently is a lying promoter.  And there are way too many of those out there. 

Once again, the touts are trying to convince you that Lone Star Gold, (LSTG) s a takeover target.  The 5 month old Pump & Dump, has seen millions and millions of dollars in investor money lost, as many are now down as much as 60%, in spite of almost daily pumping emails from one pimp or another.  They've been trying to sell the notion that LSTG would be taken over by Goldcorp since day one, hoping that you haven't noticed that Goldcorp themselves have called it hogwash and stated that the La Canderaria project is worthless.  The Vancouver Sun reported on that and so did we in several alerts and advisories, some of which you can access by clicking here, here, and here.  If you want to see anything we ever wrote on LSTG, enter "Lone Star" into the search box at the top of our website.

Speaking of junk, the insiders of Amwest Imaging (AMWI) are trying to heat up interest again by hiring additional touts to pimp this crap, now that and company have moved on to another fraud, namely, North Springs Resources (NSRS).  AMWI is now trading at .07 - .08, much below the guaranteed $12 valuation that the touts were trying to pin on this latest Phil Keuber scam.  Those same "independent", yet paid, analysts have also put a $5.00 valuation on the snake oil that NSRS is trying to sell.  Fortunately, it seems that not too many more suckers are falling for the AMWI scam, and we are proud to say that we played a signifcant role in its destruction.  It also seems that interest is dieing down in the NSRS scam, as penny players participating in these Ponzi schemes are still shaken up following last month's nose dive in AMWI's share price, when it dropped from $1.39 to 26 cents, in just under two hours.  The street is worried that this could happen again, which is easily possible with any AwesomePennyStocks promotion. Not coincidentally, TD Ameritrade is not allowing their clients to buy either of these issues.

Don't say we didn't warn you about Thwapr, Inc. (THWI).  Every attempt at a PnD with this crap fails miserably and in spite of yesterday's spike in volume, those that bought into the pump, are already down 30% in just one day.  And with buying volume drying up, we think that those still owning this at the end of the day could be down 50%.

Back to main page