October 31, 2013: Today we'll look at the very misleading after-the-close statement that Research Driven Investor made in hopes of some follow through action on their current scam du jour, New Western Energy Corporation (NWTR). Shares of NWTR gapped up at the open, as RDI "picks"* often do, from yesterday's 20 cent close. Today's first trade was at 24.19 cents and the last trade was at 24.48 cents. The high of the day was 28 cents. Here is what RDI had to say about their "pick's" trading.
Did RDI climb 40% today? At one point, yes, but that was from yesterday's close and since RDI did not tell anybody to buy NWTR yesterday, none of the subscribers buying off of RDI's recommendation saw anything close to 40%. In fact, with a 24.19 cent open, the best anybody could have done today was a 15.75% increase, a long cry from 40%. Furthermore a grand total of 1,456 shares traded at 28 cents. Somebody might have made 55 bucks from a quick flip of those shares, assuming that they sold at the exact high of the day. Yeah, good luck with that.
RDI's statement also misleads the reader into think that the stock closed up 40% on the day. In actuality, with a 24.48 cent close, shares closed up 22.4% over yesterday, but again, a lot of good that did anyone buying off of today's RDI recommendation. In reality shares of NWTR closed up 1.2% intra-day.
The fact is that according The Nightly, a strong majority of traders lost money on shares of NWTR today. 65.66% of trades occurred at prices higher than the 24.48 cent closing price. The average share traded at 24.716 cents, resulting in a total loss of $4,676 by traders. These results could hardly be called winning and would certainly not be something worth boasting about.
Finally, the very idea that 11 Buy Signals were triggered is preposterous. There is no such thing as a penny stock, especially those that are promoted, that follows signals, charts or trends. These stocks are manipulated and are nothing more than Ponzi-schemes or pyramid schemes. You cannot manufacture a trend. The promotion itself is the manufactured buy signal, but to the savvy trader, a sell signal.
*We place the word PICKS in "quotes", because in spite of the claims of research and analysis the touts do on
these stocks, they will "pick" anything they are paid to "pick". So these are not really picks but bribes.