August 31, 2014: With the Labor Day weekend comes the unofficial end of summer and an anticipated ramp up in trading of penny stocks, Pump & Dump schemes and of course, fraud. We can visualize the con artists rubbing their hands together with glee over the prospect of getting their marks back to the business of surrendering their hard earned cash.
Here are our prognostications of what could come during the last third of 2014. Keep in mind that these predictions are only our opinions.
(1) The legitimate penny stock trading and dollar volume, i.e. volume not created by wash trading and market maker participation, will continue its trend lower.
(2) As a result, the number of concurrent Pump & Dump campaigns, i.e. the number of tickers promoted at the same time, will be significantly lower than last fall.
(3) More penny stock newsletters will go out of business or merge, further reducing the number of promotional emails received in Inboxes.
(4) The SEC will also end its summer hiatus and return to suspending trading in suspicious tickers on a regular basis.
(5) To that end, GBLX, VOIL, FITX, IGRW, NTEK, NGMC and AMBS will be halted before the end of the year.
(6) HEMP and its associated tickers, including REVI, HIMR, BDPT, PPJE, LKEN, DEWM, SING, VAPR and others, will simultaneously be suspended from trading in one giant sweep of the marijuana sector.
(7) The next ticker promoted by StockTips.com will be suspended from trading within three weeks of the start of the Pump & Dump campaign.
(8) StockTips.com will then cease to exist, or at a minimum, change management.
(9) PennyStocks.com will reappear and resume manipulating stocks under new management.
(10) John Babikian of Awesome Penny Stocks will attempt a comeback.
(11) Eric Cusimano of Best Damn Penny Stocks, who was arrested in Panama in June of this year, will cooperate with authorities in the identification of associates and receive a reduced sentence and fine of about $5 million.
(12) The Department of Homeland Security, IRS, SEC, FBI and RCMP will cooperate in charging and then concurrently raiding the homes of penny stock manipulators located in British Columbia, Alberta, Florida and Belize, all of who may already be under sealed indictment.
(13) At least three market makers will be charged for penny stock manipulation.
(14) In an attempt to weed out phony OTC companies from the legitimate ones, the SEC will consider limiting day trading in OTC companies by eliminating the DTC eligibility of all OTC stocks and raising fees imposed on these trades.
It will be interesting to see how many of these predictions will come to fruition.