June 3, 2012: "We told you we would SHUT DOWN our newsletters and RETIRE if GWBU doesn't hit $2 and we still fully stand by that!", exclaimed Friday afternoon's email from number one tout/pyramid schemer/thief AwesomePennyStocks.com and its sister/partner touts. Well of course that guarantee has merit, because these criminals are in full control of the trading in this garbage and the subsequent fate that will inevitably, unavoidably, unashamedly and tragically befall Great Wall Builders (GWBU). It's the same fate that those that were left holding the SNPK, NSRS, AMWI and POTG bags have met. An intrinsically worthless company reflecting its true share value: almost zero.
Just as deceiving is this weekend's email offerings by the sleight-of-hand artists, which amongst other lies claim that, "If that isn't enough reassurance for our members to show you how much we believe in GWBUU [sic] we still intend to BUY GWBU under 2 bucks and hold until it gets much closer to $10!" Well we accept the probability that these Houdini's (they make other people's money disappear) are buying back a little stock, as they offer support to their ultimate ability to dump on the public, but the amount of the stock they buy pales in comparison to the amount that is being dumped. We also accept that they will be holding stock if it ever does get close to $10 because at the start of the Pump & Dump, the perpetrators of this scheme owned all of the stock. Therefore, it stands to reason that they will still have stock to sell so long as the promotion continues. But rest assured, once their holdings have evaporated, so will the pumping.
We're actually surprised that the claims don't get even bolder. After all, who are the bag holders going to chase when the pyramid comes crashing down? The broke company? The CEO, usually a child who has no idea what he has gotten himself into? AwesomePennyStocks purports to be owned by Centro Azteca S.A. which this week claims to be domiciled in Singapore, In the past Centro Azteca identified its home office in Belize. Like all good criminal enterprises, Centro Azteca makes itself difficult to find. So forget about going after them.
We can't believe that the SEC and other regulating bodies are still impotent when it comes to these manipulations.
But AwesomePennyStocks couldn't carry out these kind of schemes alone. It takes a great deal of organization and complicity to makes these schemes work, like a fall guy to take the rap, should the whole thing come under scrutiny from the regulators. Shill market makers are most important to AwesomePennyStocks.com's evil ways, and Wilson-Davis & Co., who can be identified on Level II quote systems by the code "WDCO", has always proven to be a willing accomplice in this criminal enterprise.
In order to illustrate the deviousness of this scheme, we decided to follow the trading in GWBU for one hour last Friday afternoon, after the aforementioned email was disseminated. We find the Level II quotes, which show the market makers on the bids and asks, to be quite revealing. Follow along, won't you?
We start our watch at 1:12:47 pm EDT, and notice that Wilson-Davis is loyally executing its roll as shill bidder to the scheme, with a 1.2 million share bid at $1.78. Notice all of the other bids at $1.78. Volume thus far, is 13,802,406 shares.
At 1:14:05 pm, all of the $1.79 stock has been bought up, and there are plenty of bids at $1.78, so WDCO feels safe to flex muscle and come in with a 500,000 share bid. Of course if anybody dared to come out with the kind of stock, that bid would disappear in a hurry, as we will soon see.
At 1:18:11, WDCO's bid increases to 1.3 million shares at $1.79. My, they sure seem to have a lot of big client's willing to buy an expensive penny stock, don't they?
It's 1:33:07, and there's that 1.3 million share bid again, this time at $1.80. Is that the same bidder who bid 1.3 million at $1.79, or is WDCO the only market maker with millionaire clients willing to throw away money on a penny stock? And if that is the same bidder and he was willing to pay $1.80 as it now appears, then why didn't he grab some at $1.80 when it was offered there? Hmmmm...
It's now 1:43:50, and WDCO's bid is still at $1.80, while the best bid is at $1.83 and the best offer is at $1.84. Guess that WDCO's client isn't willing to pay more than $1.80, right?
Wrong! It's now 1:44:34, and WDCO is now bidding for 10 milllion shares, although safely below the best bid of $1.84. Who does WDCO think it is kidding? Unfortunately, a lot of people.
At 1:45:19, WDCO feels that there is enough bidders in front of it (don't forget that the bids are shown in order of size, not in order of who comes first), that it can place a phony bid for 1.2 million shares at $1.84.
Oh oh, it's 1:47:38 and the $1.84 bids are getting hit. Notice that WDCO is still there for 1.2 million shares, but there is only one other market maker with WDCO. WDCO's full bid is intact because it is the last one to the party. Also, WDCO is not doing any selling, EVER (just look at the Level II offers; you never see WDCO there) which means it won't be crossing any of its own stock.
But at 1:51:26, a whole bunch of new bidders have come in at $1.84 and WDCO can safely increase its phony bid to 1.8 million shares. It will never get them. Want proof? Look at the next screen shot.
Wait a second! It's exactly one minute later at 1:52:26, and the bid has fallen to $ 1.83. WDCO has disappeared off Level II entirely! What happened to the 1.8 million share bid at $1.84? WDCO certainly didn't buy the stock as only 156,915 shares have traded in that minute. Getting the picture?
Looks like WDCO changed its mind again, because at 1:54:50, with all kinds of bids in front of it, it felt safe to come in with a new phony bid of 2.5 million shares.
At 1:55:59, the bid has moved up to $1.85, but WDCO is still sitting with its 2.5 million share bid at $1.84. Guess they won't pay any more, right?
Oops! Here we are at 1:58:54 with a laughable 12 million share bid at $1.85. Guess Warren Buffet wants some of this stellar deal. We wonder what he will tell shareholders of Berkshire-Hathaway when GWBU goes down to a dime.
Looks like Mr. Buffet changed his mind, because at 1:59:36, now wants just 1.2 million shares of WDCO at $1.85. Of course we're sure that the bid is authentic and that WDCO just put in one too many zeros on the original ticket (wink).
Hey now! Suddenly at 2:02:13, WDCO just has to have 800,000 shares at $1.86.
Or maybe not. It's now 2:08:14, and WDCO's bid has dropped down to a paltry 110,000 shares. Was it lucky enough to get 690,000 shares at $1.86? Doesn't seem likely as only 507,248 shares traded in that 6 minute period and everybody was in line ahead of WDCO. Also, most of that stock traded at $1.87.
Good news! At 2:09:42, WDCO has to have 1,699,999 shares at $1.86. Guess they couldn't pool enough money for that extra share. Can you hear these guys laughing at the suckers who are buying into this phony bidding?
At 2:13:49, the stock is flying and there's WDCO's 1.2 million share bid again, this time at $1.88. Now wait a second. They could have bought that stock at $1.84, $1.85 and $1.86. Why didn't they? Did they just have an epiphany? Gee, it might be too late now!
It's 2:22:25 and WDCO just has to have stock, so its bidding 890,000 shares at $1.90. Isn't it amazing how they are always just too stubborn to take out the offer?
Hold everything!!! At 2:24:36, WDCO's 890,000 share, $1.90 bid disappeared. We know it didn't get hit, because only 174,285 shares traded before the best bid came down to $1.89. In fact, all of WDCO's bids have disappeared! What happened to the 1.2 million shares bid at $1.88? Or the 1,699,999 shares bid at $1.86? Did all of WDCO's clients change their minds at the same time?
And just 40 seconds later, at 2:25:16, the best bid is at $1.84! An astonishing 1,233,736 shares traded in that period, smashing VFIN's 1,000,000 share bid. Want to guess who whacked it? But what happened to WDCO's 12 million share bid at $1.85 and the 2.5 million share bid at $1.84? Can you guess what happens next?
Predictably, the bid whacking brings out sellers and at 2:26:38, the best bid is now at $1.82. All of WDCO's large bids have disappeared. After all, it's not like they really wanted stock.
At 2:28:14, the best bid is down to $1.79 and WDCO is back in for 500 shares. We'd bet that they can avoid getting even that much.
Surprise! The bids are building again and at 2:31:32, WDCO has stepped in with their 1.2 million share bid again, this time at $1.80.
At 2:32:39, more bids come in and WDCO joins the crowd at $1.83 for 1 million shares. If they really wanted the million shares, why wouldn't they have bought them at $1.81, 1.82 and 1.83? We know they didn't because only 134,546 shares traded in that time span.
So there you have it. A one hour period in which 7,785,930 shares of GWBU traded and WDCO didn't buy a single share in spite of showing dozens of bids as high as $1.90 with lot sizes as large as 12 million. Manipulation at it's finest.
So why the show? Wouldn't you think that anybody who is sophisticated enough to look at Level II quotes could see through this fraud? Probably yes, but most of the pigeons in this scheme, don't follow, Level II. All they see is the Level I quote which only shows the total number of shares bid. That alone could look impressive to the untrained eye.