the OTC .today

Those Darn Promoters
Front Loaders v Paid Promotions

August 8, 2014: An email received today from tout, Golden Penny Stock Millionaires, prompted us to take a look at front loaders.

Email from 8/8/201
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This particular email was intended to build the tout up by tearing down other, equally deceptive and scummy touts.

Take a look at the image on the left. The email begins by blasting those who got suckered into the DPSM Pump & Dump of the last couple of weeks. And right they are. That ticker has been through a disaster of a promotion, cut down by better than 60% since the pump began on July 14. The ticker has pretty much headed south in a straight line and anybody who would have tracked the Past Performances (if you're a Full Access subscriber) would have known to stay far away from it.

But then, the GPSM scumwad, who identifies himself only as "Will", boasts about the performance of his own pumps, including TCEL and BWMG. Well hold on!  These are both tickers that have been pumped countless other times by the very touts that he criticizes for pimping DPSM. Additional tickers pumped by GPSM in the past, as well as his compandres include, TRTC, ERBB, NVLX, and the since suspended PHOT. All have, of course, taken millions of dollars out of the pockets of unsuspecting suckers. This makes it very possible that DPSM will be one of WIll's "pick" in the future.

So what is the basis for Will's boast that he is better than the other scum? Well he claims that he never accepts payment for his promotions.  That's possible, although "never" is a strong word and we doubt it.  What he doesn't tell you is that he has already owns the stock. Note that he doesn't deny this.  But he also doesn't admit it.  Does anybody seriously think he is promoting for his health?

What Will is doing is called "front loading" and it is against the law. Guys like him, many who pimp to their huge followings on the message board, buy the stock first and then hope to sell it into the hype they create, at higher prices. Just last Tuesday, two such front loaders:--Christopher Mrowca, who runs Money Runner Group and posts on iHub under the alias "HotStockAce"; and, Mrocwa's associate, Mikhail Galas, who posts on iHub under the alias "KomandoRobot"--were charged for stock manipulation schemes.

Another front loading scheme is brilliantly executed by stock pimp, Stock Aviator. Here, the tout may avoid breaking the law by getting subscribers to pay him to tell him what he will promote next. Paid subscribers front load on this advice and then count on the tout's "free" subscriber list to dump their shares on. Take a look at the email below.

Email from Stock Aviator 6/13/2014
The tout says it right there: paying "Premium" subscribers saw shares of ITGC go up as much as 400% that day and then close up 300%. Now the free subscribers should step in on Monday, presumably to take ownership of the "Premium Members'" shares. And how did the stock do on Monday the 16th? Down 30% thank you, although without enough volume to give all the "Premium Members" a chance to get out of their stock. Today, ITGC trades by appointment.

Today we saw a collaboration of many touts including known schemer, Research Driven Investor, push shares of dead ticker JZHG. It's been 18 months since the company filed financials and it has never issued a press release.  The company does nothing.  And yet the stock does trade some, even before today's promotion, indicating that front loading could have occurred. Now RDI and the other touts that took part in this collusion all claimed that they neither received compensation, nor do they own shares. The SEC recently issued an alert regarding "Investment Newsletters Used As Tools for Fraud" in which the regulator warned about touts that claim receiving no compensation, specifically stating that "the newsletter publisher may profit from your trading activity".

Why else would RDI and company push the shares of a dead ticker in a promotion doomed to lead to significant losses for their subscribers?