» Related: The Worst Promoters of 2014
Stock Mister was joined by its sister newsletters, including Fortune Stock Alerts. The sisters were acquired by Stock Mister honcho and major promoter, Rafael Pereira, from Chistopher "Gabe" Nix, after the government charged Nix with securities fraud, thus requiring him to shed his pumping operation. Not that long ago, Periera, Nix and Anthony Amado together were a triumvirate, receiving and then doling out most of the money available to other newsletters to promote those tickers that were alerted on a day to day basis.
|Christopher "Gabe" Nix|
Interestingly, within its required disclaimer, StockMister and company claimed that they had received $75,000 for a two day promotion of BCHS. This seems unusually high for the promoter, who has lately been claiming compensation of $11,000 for his daily services and has often claimed to be issuing uncompensated alerts. Why would Pereira require that the BCHS pump more than triple his regular fee?
|Click to enlarge|
The ruse worked as trading remained in a tight range around the reinvigorated share price for the rest of the day. Still, the losses incurred by the early birds who paid the massively over inflated prices at the open, resulted in a net loss for traders as a whole.
|Chart of BCHS on March 5, 2015|
|Chart of BCHS on March 6, 2015|
Insider dumping at whatever-you-can-get prices was evident as trading volume nearly tripled to 133 millions shares from Thursday's 46 million, ensuring that there was way more than just leftover bag holders divesting themselves of intrinsically worthless stock. When the dust had cleared, BCHS' market cap had dropped from $6.9 million to $1.8 million over the course of the single trading day, a day to day reduction of 74%. The two day trading volume was equal to 36.2% of the reported number of shares issued and outstanding leaving those left among the rubble reason indeed to remember Stock Mister.