November 26, 2012: It should not be a surprise to anyone that stock message board Investorshub.com is generally controlled by the promoters who pimp their garbage to a mostly unsuspecting public. These promoters place several, if not dozens, of subscribers onto the message boards of the particular scam du jour (today NILA) and invariably control the content of the board by having their members named as moderator of the board. In this way, negative postings can be mostly kept to a minimum.
In fact, the powers that be at Investorshub.com have themselves have been found culpable of taking part in promotions and Pump & Dump schemes, and at least one principal of the website has served time at a government resort for comitting stock fraud. It is well known that the adminstrators of these message boards tend to favor the schemes over the safety of those who actually rely on the fraudulent and manipulative information usually gleaned from Investorshub.com.
Occasionally, someone posts a message that really tells it ikes it is and we've been alerted to one that is so on the money and does such a perfect job of discussing the intent of penny stocks newsletters and the schemers behind them, that we decided that you needed to read this post. In case the post gets deleted by moderators or Investorshub itself, we are reprinting the content below. We think that it is that important.
~On TBX and APS:
In case some of you have missed a few of the posts on APS and TBX recently, here is a recap with a few theories of mine thrown in.
As I've posted before, one of the main factors that determines how well a pump does (assuming all other thinks are equal such as the rate that the promoters are selling shares) over the long run is the ratio of people like us on ATA who know its a promotion to the number of people who think the shell is a really company and think that they are "investing for the long term". People like us on ATA "traders", who know that its a scam, plan to sell for a nice profit well before it crashes. People who don't know that the website they signed up for is a scam will hold long term and lose most of their money on average. When there are not enough "suckers" (people who dont know its a scam/promotion/shell, not us) who are buying and holding, to overcome the selling pressure of the people like us who are selling (in addition to the promoters), the stock does not go up, and the promotion does poorly.
Case Study: TBX
The Bull Exchange started out great. They had a solid list that had a great ratio of traders to suckers, and the first play did pretty well. BUT... with each passing day, and especially with each passing play, more and more of any given list will figure out what is really going on, and the ratio gets worse and worse.
This is where marketing comes in. Promoters can pay for hard mailers to improve their ratio. More importantly for this case is that promoters can pay for internet marketing to bring in new people who dont know what the game is yet. If you do a google search for something like "penny stocks" or "stock advice" there is a very good chance that some of the victory mark websites, and a few other promoters will come up under the sponsored ads section of your search result. The best promoters constantly show up, which means that they are constantly paying good $ to bring in new people, keeping their ratio good. As far as I know (and correct me if im wrong), TBX never spent a dime on any major marketing to keep their list ration from going bad. We all saw how this played out, each play got worse and worse. There is a reason... And yes, summer is always horrible for pumps and the market in general which didn't help either...
In one of the most brilliant moves ive seen, APS started a new website, www.pennystocks.com. Simply expanding to a new site isnt brilliant at all, it happens all the time. The brilliance comes in with the name, and not for the reason you think. The obvious answer is that its a more fitting or descriptive name so it will get more traffic, but that not the real value for a promoter with that name.
To get this point across, lets examine two different scenarios, and their effect on the ratio of suckers to traders.
www.awesomepennystocks.com -- Lets say you are Average Joe, you have a little bit of extra money, and you heard somewhere that penny stocks can make big returns. You start searching on google, and you come across APS in the promoted search results, you go to the page, and see all the past plays of 1000+% gainers. Looks good so far. But you decide to do a google search on the website name and whala, you come across the ATA board, or any other trading board talking about how they are a scam. Do you think Average Joe is going to invest long term now, or is he not going to buy their alert stock at all, if he does he will be very cautious and get out quickly? This doesnt happen every time, but it does happen to a certain %, which makes it harder to get a great ratio.
www.pennystocks.com -- Same scenario, except this time when you search the site name... any talk of them being "scammers" etc is buried in a near infinite sea of hits because there is so much out there about penny stocks. There will be a significantly less % of the new "suckers" who start to figure out the game before the first play even starts.
See why buying that domain was so smart?
In conclusion, there is going to be a new TBX play coming up... my guess is there is a high probability it will not do well. It will definitely not do as well as it would have if they had done any marketing.
I have seen advertisements all over the place for www.pennystocks.com, and I had not seen APS advertising in a while. I think they were laying low after all the heat from SNPK. With all the advertisement APS has been doing for their new site, the chances are improving that their plays will get better. Their last play was the first one to show a real sign of life in a while, and im hoping that it gets better.
Victor Mark should have a new play soon as well... Could APS be teaming up with VM? VM doesnt need APS, so it wont matter, but it would be neat to see them together again.
~Our commentary: This post does a great job of illustrating the lengths the newletters/touts will go to bring new subscribers/suckers into the fold. As time goes on, the old crop of suckers become wise to the schemes and new ones must be found to replace them. A domain name like "PennyStocks.com" must have cost AwesomePennyStocks a great deal of money to purchase, but we agree that it was a brilliant move on their part, as it will be difficult for the average researcher to discern the negative publicity on that website.
These fraud artists and their brethren look for every angle to promote their ill-intended schemes. There have even been recent offers to purchase this website and its contact list, in an attempt to deceive those that look to us as a safe haven.