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StockMister's Pump of BCHS Creates Millions In Losses

March 8, 2015: Thursday the 5th of March saw Stock Mister, the marquee newsletter of Micro Cap Consultants, LLC, launch a promotion on shares of Amalgamated Gold and Silver Inc. (BCHS). This scam gave Stock Mister a running start into retaining its title as worse Stock Promoter of 2014, well into 2015.

   » 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.

Anthony Amado
Amado, the head of now defunct Equity AG, once published a series of newsletters, including "The Stock Brainiac". He wisely got the hell out of Dodge last year, giving up his pump business when he saw that the SEC was getting aggressive in prosecuting penny stock fraudsters, but not before pocketing millions for himself.

Christopher "Gabe" Nix
Micro-Cap Consultants was joined on the first day of the BCHS pump by closely associated Freedom Ventures and it's dozen newsletters including Rising Penny Stocks. Those newsletters were at one time controlled by brothers Andrew and Michael Affa, who were, not coincidentally, charged within the same complaint as Nix. The regular concurrent promoting of the same tickers has caused many to assume that Pereira gained control of Freedom Ventures at the same time he acquired Nix's newsletters. At any rate, Rafael remains as the only powerhouse among what is referred to as the "Day Trade Promoters".

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
Day One of the pump followed the expected pattern: a gap up at the open; a top out at the high of the end just a few minutes after the open; followed by a drifting back towards Square One. However, the share price received a second boost after StockMister and company issued a follow-up newsletter, claiming that, "Tomorrow You Will Remember Me!"  Little did Pereira realize how prophetic that message would be.

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
Those rolling the dice and holding on overnight in anticipation of another gap on Friday morning, had their dreams rudely interrupted after Stock Mister abandoned the ticker following a pat-on-the-back and "keep your eyes on it"email issued at 11 pm Thursday. The results were predictably Armageddon-like as bag holders joined insiders dumping en masse.

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.