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The Worst Promoters of 2014


As the calendar sets to turn to 2015, we take a look at the stock pimps who did the best job of lightening traders' wallets.

December 27, 2014: As the keeper of records regarding all penny stocks promoted, we often get asked which promoters are good to follow. Our answer, of course, is that they are all garbage; compensated for the singular purpose of getting you to throw money away on worthless stock. Indeed, there is not one promoter who consistently makes everybody money, although StockTips promotions do usually go up for a time before crashing down. In the end, even this promoter creates way more losers than winners, and like all promotions, any profits realized by a few traders, pale in comparison to the millions made by the perpetrators of these frauds.

So while there is no such thing as "good" promoters, we did think it would be interesting to see who were the worst promoters for the year just ending and take a look at the statistics that prove that playing penny stock promotions is clearly a losing battle.

We took StockTips out of the equation because of the high rate of wash trades and relatively few tickers it promoted this year. Clear this scam artist netted the highest street losses among promoters still active, estimated at over $35 million this year. We also disregarded defunct Awesome Penny Stocks and Eric Cusimano's version of Best Damn Penny Stocks, as they are now out of business; their masters either imprisoned or fugitives from the law. These two promoters conducted their schemes much like StockTips, using wash trades to give the impression of more interest in the promoted tickers than their actually was.

PennyStocks.com, a former Awesome Penny Stocks associated newsletter, gone independent following the demise of APS, is another one we took out of the mix, as that newsletter also seems to have ceased operations. Likewise for Darth Trader/Penny Stock Psycho, who may or may not still be operating, but certainly are nothing more than a shadow of their former selves.

Any of the aforementioned promoters would easily top the list of worst promoters for the year based on total residue losses in the days following the end of their respective Pump & Dump campaigns.

For the purposes of this analysis, we will look at the promoters generally referred to as as "Day Trade" promoters, as they generally promote a different ticker on each market day, although occasionally, they will pump the same ticker for two or three consecutive days. Only those promotions that took place up to December 23, 2014 will be considered.

The promoters will be ranked on the sum of all single day theoretical gains/losses for the year. The daily theoretical gain/loss is calculated by subtracting the average trading price per share from the closing price and then multiplying by the trading volume for that day.  For example, if the average share of ticker "ABCD" traded at 10 cents and the stock closed at 9 cents on 1,000,000 shares traded for the day, the theoretical gain/loss on ABCD for the day is calculated as:
(.09 - .10) * 1,000,000 = -$10,000.00

Here then, is a look at the ten worst promoters for 2014.


#10 - Sherwood Ventures

Publications: Beacon Equity, Investor Soup, The Lightning Picks, Micro Stock Profit, Penny Stock Craze, Penny Stock Finder, Stock Preacher

Theoretical Loss for Year: $178,391
The summation of the year's daily theoretical gains/losses.

Number of Promotions: 103
The number of days on which a ticker was promoted. If two tickers were promoted on the same day, then that day counts as two promotions.

Average Daily Percentage of  Losing Trades: 58.2%
The average ratio of losing trades from each promotion. In this case, an average of 58.2% of all trades lost money.

Percentage of Daily High Trade Occurring By 10:00am: 51%
A high trade established early in the day, is a likely indication of competition among sellers to divest themselves of stock. In this case, 51% of all promotions had their high trade for the day established by 10:00am.

Average Intra-Day Change in Share Price: +1.1%
The average gain/loss between the day's opening and closing trades from each promotion.

Average Intra-Day Close From Day's High Trade: -12.1%
The average discount from the day's high trade to the closing trade.

Days With More Losing Trades Than Winners: 58.8%
The ratio of promotions which saw more losing trades than winning trades. In this case, 58.8% of promotions saw more losers than winners.

Average Next Day Change in Share Price: -11.1%
The average change in share price from the promoted day's closing price to the next trading day's closing price..

Comment: Two promotions help make this promoter's year seem better than it was.  The October 10th pump of PSID and the April 16th pump of DRMC. The latter was a concentrated effort by several other promotion groups, making each promoter's individual efforts questionable. Since that promotion, the share price has dropped from .425 to .003. PSID's share price has dropped 60% since the aforementioned promotion. Promoter has a tendency to repump tickers over and over again (e.g. OOIL, TQLA)


#9 - Blanca Solutions

Publications: Penny Stocks Guru, Monster Trading Alerts, Penny Stocks VIP, Stock Report Circuit, Stock Report Daily, Wall Street Scoop

Theoretical Loss for Year: $624,192

Number of Promotions: 133

Average Daily Percentage of  Losing Trades: 57%

Percentage of Daily High Trade Occurring By 10:00am: 82%

Average Intra-Day Change in Share Price: +0.7%

Average Intra-Day Close From Day's High Trade: -23.6%

Days With More Losing Trades Than Winners: 57%

Average Next Day Change in Share Price: -23.5%

Comment: Generates lowest average dollar volume among the mainstream promoters.


#8 - Market 365

Publications: Best Top Penny Stocks, Elite OTC, Explosive OTC, Fat Cat Penny Stocks, OTC Equity, Penny Stock Chief, Quality OTC

Theoretical Loss for Year: $644,902

Number of Promotions: 88

Average Daily Percentage of  Losing Trades: 59.2%

Percentage of Daily High Trade Occurring By 10:00am: 78.2%

Average Intra-Day Change in Share Price: +7.3%

Average Intra-Day Close From Day's High Trade: -20.6%

Days With More Losing Trades Than Winners: 59.8%

Average Next Day Change in Share Price: -24.1%

Comment: Bottom line boosted by the January 14th promotion of NVLX which generated a theoretical gain of $1.4 million on that day. That ticker was a beneficiary of the medical marijuana frenzy and a flurry of promotions and overseas buying generated by boiler room operations. Share price has dropped 65% since that promotion.


#7 - Freedom Ventures

Publications: Fox Penny Stocks, Joe Penny Stocks, Liquid Tycoon, OTC Rock Star, Penny Stock Money Train, Penny Stock Pick Alert, Rising Penny Stocks, Super Hot Penny Stocks, Super Nova Stock Picks, The Stock Picking Money Tree, We Pick Penny Stocks, Winning Penny Stock Picks

Theoretical Loss for Year: $1,071,146

Number of Promotions: 123

Average Daily Percentage of  Losing Trades: 64.6%

Percentage of Daily High Trade Occurring By 10:00am: 88%

Average Intra-Day Change in Share Price: +11.4%

Average Intra-Day Close From Day's High Trade: -23.5%

Days With More Losing Trades Than Winners: 69.6%

Average Next Day Change in Share Price: -33.4%

Comment: Now shares ownership with the #1 promoter on this list. That ownership was acquired after previous management was charged with criminal stock fraud. Often promotes concurrently with #1 promoter on this list. This promoter is most likely to be involved in a "gap and trap" scenario.


#6 - Odd Marketing

Publications: Bull Trends, Penny Stock Crew, Stock Publisher, The Stock Freak

Theoretical Loss for Year: $1,142,812

Number of Promotions: 104

Average Daily Percentage of  Losing Trades: 57.6%

Percentage of Daily High Trade Occurring By 10:00am: 68.3%

Average Intra-Day Change in Share Price: +22.6%

Average Intra-Day Close From Day's High Trade: -18.5%

Days With More Losing Trades Than Winners: 58.7%

Average Next Day Change in Share Price: -12.6%

Comment: Often listed as the compensator of other promoters suggesting that this promoter is hired directly and then redistributes money.


#5 - Flip Ventures

Publications: Impressive Penny Stocks, Todays Penny Stocks

Theoretical Loss for Year: $1,499,225

Number of Promotions: 114

Average Daily Percentage of  Losing Trades: 61.2%

Percentage of Daily High Trade Occurring By 10:00am: 84.2%

Average Intra-Day Change in Share Price: +0.5%

Average Intra-Day Close From Day's High Trade: -23.9%

Days With More Losing Trades Than Winners: 68.1%

Average Next Day Change in Share Price: -18.5%

Comment: Largest promoter of dormant shells with long delinquent financials.


#4 - Global Oasis/StockChat, LLC

Publications: Stock Hideout, Stock Roach

Theoretical Loss for Year: $1,539,907

Number of Promotions: 133

Average Daily Percentage of  Losing Trades: 63.8%

Percentage of Daily High Trade Occurring By 10:00am: 69.2%

Average Intra-Day Change in Share Price: -2.7%

Average Intra-Day Close From Day's High Trade: -20.6%

Days With More Losing Trades Than Winners: 70.7%

Average Next Day Change in Share Price: -31.8%

Comment: Only promoter whose average intra-day change in share price is negative. Shares common ownership with Sherwood Ventures and will often promote concurrently with that promoter. Bottom line boosted by February 19th promotion of former marijuana scam, PTOG, which has since been the subject of a trading suspension imposed by the SEC. That promotion generated a theoretical gain of  $1 million on the day of the promotion.


#3 - GS Media

Publications: Active Market Report, Best Stocks On Demand, Best Stocks Daily, Elite Members Only, Hole In One Stocks, Massive Stock Picks, Micro Cap Digest, PHD-Trading, Penny Stock Parlay

Theoretical Loss for Year: $2,118,393

Number of Promotions: 93

Average Daily Percentage of  Losing Trades: 60.6%

Percentage of Daily High Trade Occurring By 10:00am: 78.5%

Average Intra-Day Change in Share Price: +15.2%

Average Intra-Day Close From Day's High Trade: -30%

Days With More Losing Trades Than Winners: 70.7%

Average Next Day Change in Share Price: -17.1%

Comment: Seems likely to have common management with Blanca Solutions.


#2 - Research Driven Investor

Publications: Equity Trading Alert, Growing Stocks Report, Micro Cap Profiler, OTC Tip Reporter, Penny Stock Bull Report, Penny Stock Scholar, Penny Trader, Research Driven Alerts

Theoretical Loss for Year: $2,348,251

Number of Promotions: 122

Average Daily Percentage of  Losing Trades: 61.9%

Percentage of Daily High Trade Occurring By 10:00am: 79.5%

Average Intra-Day Change in Share Price: +6.4%

Average Intra-Day Close From Day's High Trade: -23.1%

Days With More Losing Trades Than Winners: 64.8%

Average Next Day Change in Share Price: -20.2%

Comment: Many of these newsletters are listed as being owned by Lions Gate Ventures, which shares common ownership RDI and usually promotes hand in hand with RDI. For the sake of this report, the two autonomous companies are considered as one.


#1 - Micro-Cap Consultants

Publications: Stock Mister, 123 Stock Alerts, Fortune Stock Alerts, Penny Stock Circle

Theoretical Loss for Year: $3,886,415

Number of Promotions: 183

Average Daily Percentage of  Losing Trades: 62%

Percentage of Daily High Trade Occurring By 10:00am: 81.8%

Average Intra-Day Change in Share Price: +25%

Average Intra-Day Close From Day's High Trade: -27.1%

Days With More Losing Trades Than Winners: 70.5%

Average Next Day Change in Share Price: -33.6%

Comment: Ownership has owned many other newsletters in the past, but seems to have abandoned them after acquiring the newsletters of Global Marketing Media from Christopher "Gabe" Nix and incorporating them into his Stock Mister promotions. Also acquired ownership of the newsletters now vended into Freedom Ventures after the Affa brothers were charged with Securities Fraud concurrently with Nix.