|Fri, May 17, 2013|
Nuvilex Inc (OTCMKTS:NVLX) Slowed Down
This week hasn't been the best for Nuvilex Inc (OTCMKTS:NVLX). Monday started on a positive note with 17% gains compared to last week's close, but on Tuesday, the ticker fell by around 13%. While there were some fluctuations, NVLX remained virtually stationary on Wednesday , but yesterday, there was quite a lot of stock changing hands (11 million shares) which, unfortunately resulted in a fifth of the value lost by the end of the day.
Despite the poor performance from the last trading session, it's fair to say that the ticker has been performing admirably during the last months. The value gained since April 15 amounts to 81% and the figure for the last two months is even more impressive - 130%. This means that even with the downfall from yesterday, the market value of the company hovers around $64 million. But what exactly will you get if you decide that you want to take over NVLX? [BANNER]
Well, as we wrote in some of our previous articles, not a whole lot. At least in terms of financials, things don't look so bright as you can see from the summary below:
You might argue that indeed, the situation is a bit tough at the moment, but starting up any company, especially one in the bio-technology sector is always difficult and that soon the real potential will start to shine.
That might just happen but then again, there is nothing to guarantee the success. At the same time, there are some things to suggest that the bright future is not that certain.
The first thing is found in the figures above. The task that they have undertaken at the moment is quite a difficult one and it will require massive amounts of investments. If their current financial situation is similar to the one that we see in the 10-Q, they will need to borrow a lot of money which will increase the liabilities even further. That, in turn, will make their lives a lot more difficult and will eventually push the price South.
The other thing that makes us rather dubious about the success of the new cancer treatment technology is NVLX's history. They have tried their hands on developing all sorts of products for the medical and cosmeceutical industries and their success has always been rather limited.
Before they started work on the encapsulated cells that will, supposedly, treat cancer one day, they were marketing a new sort of permanent tattoo ink that was easily removable. Further back in time, they had products to battle the teenagers' worst nightmare - acne - and we can see a host of other business plans ranging from the development of immune-boosting pills to devising methods that are supposed to keep fruits and vegetables fresh for a longer period of time.
As you have probably guessed, none of these worked out quite the way they wanted and you would agree that treating cancer is, by far, their most ambitious undertaking.
Sure, if they do manage to do it, NVLX will become a huge company, but if they don't, they will remain just another penny stock that caused quite a lot of people to lose money. Right now, only entities like Goldman Small Cap Research and Stock House Group as well as some overly optimistic users on the message boards are saying that NVLX's success is all but certain. Bear in mind, however, that they have been paid to do so, which puts a big question mark over their credibility.
And even if that wasn't the case, if you really focus for a minute and read through all the things that have been published during the last couple of months on all sorts of websites, you will see that most of them are nothing but optimistic projections, hopes and dreams. This begs the question: "Isn't the artificial hype just a little too much?". We'll let you decide.
China Teletech Holding, Inc. (OTCMKTS:CNCT) Bombs After Pump
China Teletech Holding, Inc (OTCMKSTS:CNCT) took a massive plunge of more than 70% yesterday and dropped down to $0.012. Traded volume exploded by almost 20 times the amount of the previous session with 7.6 million shared dumped on the market.
The fall happened right after a paid promotion was initiated for the stock. PennyStockCrew and StockPublisher disclosed compensation of $70 000 for a two day promotional campaign. We are wondering if they will try to send alert emails tomorrow after the fiasco the stock suffered. StockRoach, BreakoutStocks, Penny Stocks Profile also did their part in touting CNCT for far lesser sums - $10 000, $12 500, 15 000, respectively. [BANNER]
The stock was already pumped to high heavens back in late February when it skyrocketed by more than 1000% in a single day. Now the ticker has almost lost all the value it gained due to the praising and in early trading today it continued its slide to the bottom by another 16%.
On the financial side of things the CNCT is quite unlike the majority of other pennystock companies. For 2012 it reported revenues of more than $26 million and finished the year with a positive bottom line - a distant dream for many others.
A couple of months back, Penny Stock Crew and StockPublisher were engaged in other promotion for the even bigger sum of $145 000. When the emails stopped Soul and Vibe Interactive Inc. (OTCBB:SOUL) was devastated and currently the stock is barely registering any trades.
Even experienced traders may find CNCT's stock difficult to play because the inherent volatility of the stock coupled with the touting should not be taken lightly.
Green Envirotech Holdings, Corp. (OTCMKTS:GETH) On an Uptrend
Green Envirotech Holdings, Corp. (OTCMKTS:GETH) are on an absolute tear. Yesterday they climbed another 36% to close at $3.40. Since last week they have been invariably closing in the green resulting in a more than 5 times increase compared to their close on May 2. The company hasn't been able to reach such price levels for almost a year.
GETH is a development-stage technology company that has a patent pending oil conversion process that turns used plastics and tires into a high grade oil, suitable for refinery usage. What spurred their recent growth was an announcement they made on the exact same date - May 2.[BANNER]
They entered into a Letter of Intent for the formation of a global joint venture with Petrosonics, LLC. Try as we might we couldn't find any official website for this independent company, something rather unheard of in this day and age. More importantly GETH issued an update to their operations and more specifically they are going to license Petrosonics' patented technologies for Africa's newest refinery.
Numbers such as these should have lowered the confidence investors had in the stock but that certainly wasn't the case seeing their strong finish yesterday. Traders should also note the fact that GETH has only 2.6 million shares issued after the recent 1-for-100 reverse split.
The high price of the ticker may undergo a correction at any moment making the trade a risky venture without doing your own due diligence.
The Neologic Animation Inc (OTCMKTS:NANI) Primed For Another Pump
After the excitement from the rather expensive awareness campaign that took place last Friday died out a little, The Neologic Animation Inc (OTCMKTS:NANI)'s price headed south and in just two days, the ticker lost around 40% of its value. On Wednesday it bounced back by about 30% and after remaining level yesterday, it's now ready for another round of pumps.
This time the campaign is not nearly as big as the one from last week. After the end of yesterday's session we received a total of nine emails from eight different promoters (HSP Team, Vip Stock Alerts, MBSA, 24-7 Stock Alert, JetLife, DITR Stocks, Penny Stock General and Stock Runway). While the number of newsletters is quite a lot smaller than the one from the previous effort, we're still pretty sure that the touting will have some effect on the performance of the stock, especially with the grandiose terms like "new eLearning giant" that some of the pumpers used.
The newsletter that got the biggest compensation ($6 thousand) is Stock Runway and we can see from their track record that they have talked at length about the solidity of various companies in the past and the end results have always been rather appalling as illustrated perfectly by Great Rock Dev Corp (OTCMKTS:GROC) who were the target of Stock Runway's promotional email from April 21.
As you would imagine the performance history of the other newsletters currently participating in the NANI pump is also pretty ugly, but can they do the unthinkable? Can they finally go out of their own way and actually provide their subscribers with a serious company and a solid investment option? [BANNER]
Well, we have written a couple of articles on NANI already and we can see that at least when those articles were being published, the answer was "no" or at least, "not yet".
NANI are still working on their eLearning system and while they said numerous times that they want to expand it outside China the cold hard facts show that it's not ready yet. We mentioned that according to their latest filings, they plan to have it available throughout China between 2014 and 2016 and we also mentioned that things don't appear to be working quite according to plan. This renders the talk of global expansion rather pointless, at least for the time being.
Nevertheless, NANI continue with the forward-looking statements and on Monday their PR department came up with another announcement. They said again that they are targeting people worldwide. More specifically, the people who are studying Mandarin. According to NANI, their number is growing by the minute and their eLearning system, will be perfectly suited for them.
Again, that may turn out to be true and if the system really is as good as they say it is, it could boost NANI's revenues immensely, but before all that, the platform must be up and running. That's something that we have yet to see.
We'll also need to wait for their next quarterly report for a little longer. Yesterday, they informed us that they will need some more time to finish it off and make it public. It's rather important that they do it as quickly as possibly since NANI's shareholders have had no up-to-date information about the company's financial situation for quite some time now and we're pretty sure that they would like to see what's going on.
Trouble is, even if the statement does look better than what we have seen so far and even if they finally manage to get the eLearning system up and running in the near future, the constant pumps threaten to bring the ticker even closer to the bottom of the chart. That is why a quick look through the promotional history before investing in any penny stock company is always a good call.
Petrotech Oil & Gas Inc (OTCMKTS:PTOG)'s Pump Attempts Fail
A couple of days ago Research OTC and Momentum OTC got paid $5,000 to send out a couple of emails saying how much potential can be found in Petrotech Oil & Gas Inc (OTCMKTS:PTOG)'s shares. Who paid them? It was PTOG themselves, and if you read through our articles regularly, you would probably know the our opinion on companies that try to pump their own shares is not exactly positive.
PTOG didn't rely solely on the emails, though. The pumpers said that they heard a "rumor" about some news coming from the company and surprise, surprise, minutes before the start of yesterday's session, there was a new press release. And isn't it exciting?
PTOG announced yesterday that they have began work on their properties. If you follow mineral exploration penny stock companies like we do, you will probably know that every time there is a new announcement from such ventures, it's most likely about an acquisition of a supposedly proven well or a mine. In most cases, it is garnished with projections about future growth and there is also a statement from the CEO in which the words "shareholder" and "value" get used and abused. PTOG, though, basically said "We're starting our operations." and that, coupled with the emails resulted in... a 20% loss.
That's not that much of a surprise for us if we have to be honest. These sort of awareness campaigns usually end up sour no matter how much potential the pumped company has and Research OTC as well as Momentum OTC have been around for long enough to cause some spectacular promotional flops. One of the more recent ones was the pump for MineralRite Corp (OTCMKTS:RITE) from April 29. Both newsletters took part in it and you won't need to spend hours analyzing the chart on the right to see what the results were.
Yesterday's drop for PTOG also not that shocking because they have been around for so long and they have been promoted so many times that people seem to have lost faith in them. Back in January they changed their name for the seventh time since their inception and, as you'd have probably guessed, they executed a reverse stock split. The price kept sliding down, however, and the shareholders don't seem to be too happy about that.
Before PTOG changed the name, the company was known as Unity Management Group, Inc. and for the three years that it went by that name, our database has recorded a total of eight promotional campaigns and over sixty emails received from all sorts of pumpers.
Judging by their latest financial statement, they haven't been terribly successful with their business, either. The report covers the fiscal 2012 and it's not really indicative of the current financial situation, since an acquisition was closed in April, but it does give you an idea of how they have been doing throughout the years. Here are the figures: [BANNER]
With those figures in mind and the fact that they are changing their name and ticker so often, it really is hard to believe that after 15 yearly of struggling, they have finally managed to get on the right track.
Of course, there is a chance that they have, indeed and their newest subsidiary might just have the resources to get them back on their feet but regardless of whether this is the case or not, paid pumps like the one we saw yesterday will inevitably punch the price to the ground. That's why you should be extremely careful when weighing your risks.
|Thu, May 16, 2013|
Gdt Tek Inc (OTCMKTS:GDTK) Making A Comeback
Today's trade session started good for GDT Tek Inc (OTCMKTS:GDTK) after they lost about 8% during yesterday's trading. Today their stock managed to climb from $0.052 to $0.059 in just half an hour after market open.
This movement may be attributed to the pump emails that are flying in from different paid promoters. The press releases that they put out for the mere purpouse of ensuring investors that they are not dead shouldn't be underestimated also.
We can only presume that insiders who own substantial amounts of stock are behind these promotional emails. The reason for our suspicion is the fact that there was massive dumping of stock on May 14 when the total volume of stock traded was 2.5 million shares at a total trade value of $148 thousand. That volume is outrageous compared to GDTK's avarage of 298 thousand.
They claim that they are finally going to file their financial reports in one of their PR's, which would be good news if its true, since they haven't filed any financial reports with the SEC from July 2011 and their latest annual report that can be seen in OTC Markets is from June last year.
The figures in the above mentioned report are horrific and we reckon things haven't changed a lot for 1 year. Let's take a quick peak at the numbers of prime interest from the report, which are listed below.[BANNER]
When you put the accumulated deficit of $26 million besides these numbers the report starts to look like something you would put in a stock exchange horror movie. Also, of course due to the fact that they have failed to file financial reports for so long that they have been marked with the red triangle in OTC Markets that is used to indicate companies that are in the OTC Pink Limited Information category.
With all that in mind we don't really think that even their press releases are worth the time to read. All in all they prove themselves as a risky investment choice, providing little information about their real financial situation and trying to attract investors with paid promotions and press releases. Make sure you do your own due diligence before taking a decision to invest in GDTK and weigh out all the risks.
ImmuDyne, Inc. (OTCMKTS:IMMD) Continues to Pick Momentum
After Immudyne, Inc (OTCMKTS:IMMD) made their 15-month plan for growth public on April 18 they have been on a constant climb up the stock chart. Well, they may have suffered one or two hiccups but in the end the stock is still going strong. Yesterday they closed at $0.39, a 20% increase compared to the end of the previous session.
The company is developing products that help people strengthen their immune system and increase their overall wellness. In contrast to many other pennystock medical companies IMMD have been granted numerous patents for their products and have applied for 3 new patents in 2013. Even though we must admit that their projected $18 million in sales by the third quarter of 2014 seem a little bit overly hopeful. [BANNER]
Their financial situation is no too shabby either. Just two days ago they filed the quarterly report for the period ending March 31 which contained the following results:
Of significant importance for investors should be the fact that the company hasn't issued any new shares for the three months covered in the report. IMMD would have had a positive bottom line if they didn't hire a Chief Marketing Officer but that is hardly a negative decision.
What is undoubtedly a negative though is the promotional campaign run by Penny Stock Prophet and its affiliates. For two days they have been sending out alert emails without receiving any compensation for the effort. That wasn't the case back in late March when they were paid $30 thousand to praise Solar America Corporation (OTCBB:SOLX). Since then and after suffering trough another pump the ticker has plummeted towards the bottom.
On first glance IMMD are a solid company with real business plan. But the ongoing promotion demands from any trader to do his own due diligence before investing in the company.
The Unconventional Pump for Cloud Star Corp (OTCBB:CLDS) Continues
The promotion for Cloud Star Corp (OTCBB:CLDS) is quite different from most of the pumps that we deal with around here on a daily basis. Usually, when a penny stock gets promoted, there is a lot of emails flying around convincing inexperienced investors that this or that ticker has a great product, an expert management team and/or huge potential. Sometimes we see hard-mailing campaigns where you receive a brochure of some kind full of colorful pictures and complicated diagrams, of course, garnished with the same promises of wealth and fortune that you hear from the newsletters. There is one more method - paid users flooding the message boards with all sorts of optimistic opinions whose aim is exactly the same - to make you think that the promoted company is a really good investment option. [BANNER]
The case of CLDS is very different, indeed. There were some emails, but the activity is nowhere near as intense as what we're used to. Although we spent quite a lot of time searching for one, we couldn't find any traces of pumping through the snail mail, and the investors forums seem to be all but inactive.
This time, the people who want to make some profit out of CLDS' shares decided to take on a different approach. As we wrote in one of our previous articles on them, there was a special website created that, supposedly, contains some sort of a report on CLDS. It looks pretty much the same as the regular pump emails with the only difference that they needed to make it longer and in an attempt to dramatize it further, the people who created it came up with some conspiracy theories according to which, the Chinese are about to launch a cyber-attack on the US and that CLDS have the key to save our precious data.
Brilliant piece of fiction, we reckon, but that said, the authors did receive quite a lot of money for their efforts - $2.5 million. And it really is baffling why would anyone want to pay that much money for a pump on a company like CLDS. We wrote a couple of articles on them already and every time we decide to revisit them, things seem to be getting worse.
Take the SEC filings, for example. The latest financial report that they published went live on January 22 and it covered the three months that ended on November 30. We mentioned numerous times that it paints an ugly picture for CLDS and that unless they manage to do something about their financial situation, they could end up serious trouble. Unfortunately, we have no idea if they managed to raise some more money since right now, nearly four months after the latest statement came out, we have no new data. More worryingly, the regular people who are considering CLDS as an investment option have no idea how they have been doing for nearly six months.
And speaking of CLDS' financial situation, we should point out that while the official documents are scarce, the same can't be said about the news. The latest press release came out at the beginning of the month and according to it, CLDS have managed to secure some money. That is correct, they have received $350 thousand from an entity called Leeward Ventures. Having in mind all the facts above, it really is a wonder how anyone decided that their money is safe with CLDS.
It's no wonder, actually. Leeward Ventures is owned by one of the company directors - Mr. Walter Grieves, and this is not the first time that he gives money to CLDS. According to the 10-Q, Leeward Ventures is already in possession of 1.25 million shares of common stock that they received as a conversion of notes. While it's not specifically pointed out in the press release, we reckon that this number is about to get bigger, if it hasn't already.
Anything else wrong with CLDS? Well, if they want to present themselves as solid computer company, they might want to take a look at the website for their MyComputerKey gadget as it's not working at the moment. And it seems that they really want to look credible in the eyes of investors. Otherwise, why would they rent a virtual office?
Alas International Holdings, Inc. (OTCMKTS:VDSC) Climbs Up on Expectations
Yesterday marked another close in the green for Alas International Holdings, Inc. aka PV Enterprises International, Inc. (OTCMKTS:VDSC). This time the spike was less then half of Tuesday's 42% rise but still the stock closed at $0.016. The ticker hasn't been on these price levels since mid- August last year so something must be going right for them.
The problem is that that something apparently is based on their PR announcements without any concrete information. As we informed you in our previous article, VDSC revealed a merger with the greek Hydraiki Naval Company. According to the terms the independent company agreed to buy 25 million shares of VDSC each priced at $0.50. To some this may sound way too good to be true having in mind that VDSC have never in the past 3 years even reached $0.3, let alone half a dollar.[BANNER]
The latest shareholder update from May 9 informed about a team from the company departing for Europe this weekend to finalize all the agreements, previously announced mergers, joint ventures and acquisitions. Expecting some big results on their return investors flocked around the stock but looking at the financial situation of the company we are somewhat puzzled.
Their quarterly report for the period ending December 31 contained the following:
We just couldn't help but ask ourselves how exactly are they going to realize their future plans of "mergers and acquisitions throughout the Greek and Caribbean islands, and the Mediterranean, and south and central American and north American markets".
A correction to the price may come at any time so extreme caution should be exercised before investing in VDSC. They are a pink sheet company so the next financial report may take awhile and without it investors have no authentic information to rely on.
The Pump for Great American Energy Inc (OTCBB:SRBL) Continues
Since we last covered Great American Energy Inc (OTCBB:SRBL) on May 13, the company's stock had 2 days of fairly good trading going up a bit over 5% in price and reaching $0.73.
Yesterday's trade session, however, didn't go so well and the momentum their stock had gathered diminished after they finished at $0.70 at market close. It seems that investors have gotten tired of their prolonged promotional campaign and even tho there were pump emails that came in Yesterday the stock price went down on below average volume.
The total volume of the stock traded was 279 thousand compared to a 283 thousand avarage and the total trade value came at $196 thousand. Going this way while still getting pumped means that this stock might be tricky even for the most experienced investors as it is quite unpredictable.
SRBL are not really in big financial trouble at the moment as we saw from their latest financial report which covers the quarterly period ended March 31, 2013. Let's take a moment to have a look at the most significant numbers from that report.
cash: $113 thousand
Their pump continue for the moment and they have an update on the current exploration project for their Big Smoky Valley lithium project. In the latest press release from May 14 we can see that they have hired qualified advisors for their project in the face of Mr. John O. Rud and Mr. Clive Ashworth.
However, we have doubts about them as we can see that they are the men behind GeoXplor Corp. The reason for our fears is the fact that GeoXplor has sold mineral claims to a number of other microcap companies, which ended up rather badly.[BANNER]
In fact Mr. Ashworth the founder of GeoXplor Corp. was banned by the British Columbia Securities Commission (BCSC) for an alleged scam which ended up with criminal convictions for two stock promoters. Some promoters even touted him as the "Indiana Jones" of the lithium industry in paid promotional emails about microcap exploration stage mining companies such as First Liberty Power Corp (OTCMKTS:FLPC).
At first when we saw the press release we looked at it with optimism, however, doing a little research we managed to dig the above mentioned information. In our opinion this press release is not really hearthwarming for investors that have decided to take the bet with SRBL.
All in all, we consider that SRBL have really scored an own goal with this press realease. We think that way because anyone who does a little bit more research on the people they mentioned to have hired will find this kind of dirt. Maybe by putting on the rose tinted glasses we could start to think that Mr. Ashworth has changed, however, that is unlikely.
With all that in mind SRBL remains a risky investment choice. Always be sure to do your due diligence when you decide to invest in promoted stocks, as usually they are nothing more than insider enrichment schemes.
StockMister Joins the Pump for SMA Alliance Inc. (OTCMKTS:SMAA)
We thought that after several days with no positive effect the pumpers would admit defeat and move away from SMA Alliance Inc. (OTCMKTS:SMAA) but we couldn't have been more wrong. The pump is going stronger than ever and another round of 10 alert emails were sent despite the ticker taking another plunge of 24% to close at $0.047.
This time the name of StockMister, one of the more notorious newsletters, definitely stood out among the myriad of lesser pumpers. They disclosed receiving compensation of $30 000 and in turn they paid $15 000 to Rising Penny Stock and its affiliates - SuperHotPennyStock, LiquidTycoon, PennyStockPickAlert to name a few.[BANNER]
In the touts they still rely on the same lines of bottom bounce and uptrend momentum we have been hearing the past few days. They must be hoping that with enough repetition they will eventually come true. But for now the stock has been going down losing around 75% of its value in the last week and a half with investors dumping more than 16 million stocks on the market in an attempt to bail out.
A possible reason for yesterday's drop and the loss of confidence in the company is more than likely the quarterly report for the period ending March 31 that SMAA filed yesterday. We took a look inside and the numbers we found were in fact not that grim:
They are keeping their debt in a manageable levels and the net loss isn't staggering. The company just recently launched the latest version of their lead generating software followed by a successeful beta testing of their new InstaPost program. This product is designed to expand the company's operations beyond the automotive sector so a boost in revenues should be expected in the near future.
What probably scared investors away is the dilution that the stock has underwent in just 3 months. SMAA had 174 million common shares issued by the end of 2012 while now they have almost doubled that number to reach 300 million after the first quarter of 2013.
The ticker may crumble even further under the promotional pressure. Back in early February StockMister were praising Primco Management, Inc. (OTCBB:PMCM) for more than $100 000. When the moved on the stock was flattened to the ground and is currently trading for $0.0068.
Vizstar Inc (OTCMKTS:VIZS) Getting Crushed By Promotions
On December 10, 2012 Vizstar Inc (OTCMKTS:VIZS) announced that they have closed the acquisition of a company called Kimberly Parry Corporation and they started the next chapter in the confusing book called "The History Of VIZS". Why do we think that it's confusing? Well, the last time that we wrote about them, they were just switching their business from charter flights to oil and gas exploration. It's pretty clear that neither the air transportation, nor the exploration businesses had worked out, but now VIZS seemed to have taken control over a company with real products, albeit in a sphere that they have never been involved in - skin care products. That's a good thing, right? [BANNER]
It should be, but there is nothing to prove it. Since the acquisition was completed, VIZS have filed two quarterly reports - one for the period that ended on November 30, 2012 and one for the three months before February 28, 2013. The first one is of no real interest since it covers the period before Kimberly Parry Corp. and their products were part of VIZS' portfolio, but we were really excited to open the financial statement dated February 28 and see what's going on. Here's what we found:
That really got us confused. We opened Kimberly Parry's website and we saw that there are a total of 20 products, prices ranging from $16 to $68. We also checked the Facebook page and we saw that there are around 300 people who have clicked the "Like" button and yet, there are no revenues? It gets you thinking: "Are they selling the beauty and skin care products for free?".
The confusion doesn't end there. When you read through the notes on the financial statement, you see that most of it is copy-pasted from the previous report - the for the period before November 30 - and they haven't even bothered to change the dates. The notes also disclosed that they have borrowed some money (no mention of how much) and they say that it will be sufficient. Here's a question: "Where's the cash?".
One thing that they have diligently described in the report is the share issuance. And there's been quite a lot of it. When Mr. Chris McConnell was appointed as a CEO, he received 150 million shares for his services. In January, they effected a 1 for 25 stock split and in February they raised the number of authorized shares to 9 billion. Not long after that VIZS gave their CEO additional 2 billion shares and a further 4 billion to an entity called Renewable Technology Solutions, Inc. All this stock should be restricted for the time being so it's not that much of a worry, especially if you are in for a quick trade.
Read further down, however, and things don't look so bright. On April 1 VIZS issued a total of 637 million common shares to a third-party note holder in order to reduce their debt by just $63 thousand. A month and a bit later, a third party paid Stock Mister $47 thousand for a pump. Stock Mister, on the other hand, distributed some of that amount among smaller promoters so that the awareness campaign is bigger and on Tuesday it did manage give VIZS a push when the ticker gained nearly 50%. Yesterday, however, there was a huge crash and VIZS' shares lost 57% of their value, causing a lot of traders to lose huge amounts of money on Stock Mister's latest play.
Whether it's the aforementioned, 637 million shares that caused the slide or something else, we can't be sure. Still, this whole story goes to show how badly promoted penny stocks could turn out. Especially when, like VIZS, there's nothing to suggest that they are moving in the right direction.
|Wed, May 15, 2013|
Trulan Resources Inc (OTCMKTS:TRLR) Get Pumped Yet Again
If you read through our articles frequently, you will probably know that when we cover a pump, we often put in the chart of a previously failed pick to show you that when a penny stock gets promoted, things don't usually go according to plan. We have often used Trulan Resources Inc (OTCMKTS:TRLR) as an example of failed pumps, not because we don't like them, but because they have given us plenty of reasons to do so.
The chart illustrates rather well what we're talking about and in an attempt to warn you of what was going to happen, we have published a number of articles, about TRLR and their pumps. After the campaigns from March and April failed miserably, we thought that the newsletters will stay away from TRLR at least for the time being, but we turned out to be wrong. There's been quite a lot of mailing activity during the last couple of days and while the campaign doesn't appear to be quite as big as the ones we've seen, the emails keep coming in as we speak with more and more promoters jumping in on the bandwagon. So, nothing new here, but have TRLR moved anywhere since the last time we wrote about them? [BANNER]
In terms of their financial situation, no, they haven't. TRLR did publish their annual report at the beginning of April but, if anything, it looks even worse than the ones before it. Here's a recap of the figures:
Still, TRLR have some mining claims that they bought from the company CEO back in October in exchange for a whopping 320 million shares of common stock and if they turn out to be full of precious metals, TRLR could become really rich, right? Sure, but they will need to get the aforementioned metals out of the ground and we doubt that $523 in current assets will be enough. On the bright side, at the beginning of March they said that they have signed an agreement with a private investment group which will provide TRLR with a loan amounting to $1 million. Unfortunately, the press release doesn't state the name of the group and the fact that TRLR are currently on the Pink Tier on the OTC Markets means that they are not forced to file official documents with the SEC which, in turn means that we'll probably never know who will be the provider of the money.
But let's get back to Mr. Robert Rosner, TRLR's CEO. As we mentioned, he is a majority shareholder and it would appear that his name is quite popular among CEO's all over Pennyland. People that go by the exact same name appear to be at the helm of Lyynks Inc (OTCMKTS:LYYN) and Wataire International, Inc. (OTCMKTS:WTAR) as well as a company called Pinecrest Ventures, Inc.(PCVI) that is currently listed in the Grey Market tier on the OTC Markets. If this is indeed the same Robert Rosner, he must be very good at multitasking.
And while, we can't be 100% sure that TRLR share their CEO, we can be certain that they do share their office space with a few other publicly traded companies. According to the official filings, TRLR's headquarters is situated at 2850 W. Horizon Ridge, Suite 200, Henderson, NV 89052 and the same address, down to the number of the suite, is found in the reports of at least three other companies: American Lithium Minerals Inc (OTCMKTS:AMLM), PrepaYd Inc. (PPDC) (whose shares got suspended by the SEC) and Rarus Technologies Inc (OTCMKTS:RARS).
When we saw the RARS ticker in the list we remembered that we covered them a couple of months ago when they were being pumped and we decided to see how they have bee getting on. Not surprisingly, the performance hasn't been brilliant. When you consider all the past promotional failures for TRLR, the danger of them repeating the curve drawn by RARS is imminent.
The Stock of Global Entertainment Holdings, Inc. (OTCMKTS:GBHL) Continues to Rise
The stock of Global Entertainment Holdings, Inc. (OTCMKTS:GBHL) is on the rise with again of over 300% in just 1 week of trading.
GBHL's stock at the moment is gathering momentum and it's doing it well. Most recently, since the start of today's trade session they managed to climb to the $0.10 mark. They started trading again on May 6 and since then they don't have a session that ended in the red.
However, for how long will this last and when will the dumping begin?We are quite sure that there are insiders in possession of a considerable amount of GBHL's stock, however, this is unprovable due to the lack of in depth reports from the company.
They are currently filing reports under the alternative reporting standard in which they don't have any mandatory fields of information to be disclosed, or in other words they can write whatever they want. Their latest report is for the quarterly period that ended December 31 and we were surprised to see that it consisted of only 3 pages filled with raw statistical information. The numbers of prime interest from the above mentioned report are listed below.[BANNER]
What was more surprising, however, was the fact the report didn't contain any information about the issuance of new common stock or convertible notes, which is vital for investors. The most recent announcement from them is concerning the domestic release of their movie The Hostage Game whose production ended in 2010. We don't know why it took them so long to release it, but as people say "better late than never".
Seeing all this information makes us unsure if GBHL is such a good investment option. Be sure to do your due diligence and weigh out all the risks befoe making any decisions.
The Terra Tech Corp. (OTCBB:TRTC) Pump Comes to Its Inevitable Conclusion
In an unprecedented dumping of shares, Terra Tech Corp. (OTCBB:TRTC) took a fall of nearly 30% to close at $0.10. Not only were more then 4.6 million shares shed on the market but it also marked their new 52-week low.
This was to be expected if you read our previous article about the company. The considerable sum of $70 thousand paid to StockPublisher and PennyStockCrew for the promotion ensured that when the crash came it would hit the stock hard. When the newsletters saw where the things were going, they suddenly became quite silent despite the promises to keep their subscribers updated throughout the trading session. We haven't received any new alert emails today so it is more than likely that they will go on to seek new picks. [BANNER]
Unfazed by this development the company continued with their press articles and released two more. Although the first was just another PR piece about their CEO being interviewed, the other was a bit more substantial. Following the distribution agreement with GroRite Garden Centers, they have now signed another one with NB Plants that enables them to have first right to purchase their entire crop throughout the year.
And now it is time to delve into the complexities of the corporate world. As part of the acquisition terms for Edible Gardens, Ken Vande Verde was appointed as COO of TRTC, while two of his brothers were elected as directors of company. Additionally, the shares issued to the Vande Verde family for the acquisition gave them 53.7% of the voting power of the Corporation. Now, Ken Vande Verde is still the president of GroRite according to its official site while Mike and Steve Vande Verde are the President and Vice-President of NB plants, respectively.
What the final outcome of all of these family dealings will be won't become clear until TRTC releases a quarterly financial report. For now the low price of the shares may induce some valley buying but any major boost in investor confidence is unlikely.
News And Paid Reports Prolong Nuvilex Inc (OTCMKTS:NVLX)'s Run
The first promotional emails from this year's campaign for Nuvilex Inc (OTCMKTS:NVLX) hit investors' inboxes on April 15 and, surprising as it may seem, right now, a month later the pump seems to be working. Strangely enough, we stopped receiving emails last week but despite that, apart from some hesitation yesterday, the ticker appears to be hanging on.
That said, the newsletters are not the only ones creating all the excitement around NVLX. The number of press releases that came out during the last four weeks is absolutely astounding and if you just look at the headlines, you'd be forgiven for thinking that the people who work for NVLX have been developing their cancer treatment flat-out during the last month and, of course you would expect that the progress made is absolutely huge. Is that the case, though?
Well, if you read carefully through all the entries on NVLX's Yahoo Finance profile, you will see that a lot of them are reports posted by financial analysts and when you dig a bit further and check out the fine print, you will see that they have all been paid to spread their optimism.
Take Stock House Group (SHG), for example. They admit that they have received $2,200 for their report and it would appear that what they have published is not that different from what investors received in their inboxes from the promoters.
And we really aren't too keen on trusting SHG blindly when we have in mind that they were promising wealth and fortune out of Enviro-Serv Inc (OTCMKTS:EVSV)'s shares not more than a couple of weeks ago. As you can see, EVSV have lost around half of their value since SHG's report and they are not the only ones.
On March 10, SHG published their opinion on another heavily promoted penny stock - Groveware Tech Ltd (OTCMKTS:GROV), but as you can see, despite SHG's expert opinion, GROV continued to slide down. As you'd have probably guessed, the two reports were also paid by third parties.
Another group of financial experts are also quite active with their press releases. They're called Goldman Small Cap Research and they prefer to compare NVLX to solid biotechnology companies worth tens of billions of dollars. We reckon that, at best, it's a bit too early for such comparisons.
Nevertheless, it appears to get people all excited and when you take a quick look through NVLX's message board on iHub, you will see that it's full of people posting all sorts of positive things about the company. But again, is that really the case? It is, but there's one crucial detail - most of them have been paid to do so. So, what are they talking about exactly? [BANNER]
During the initial stages of the campaign, the pumpers were explaining how NVLX are going to employ their state-of-the-art "cell-in-a-box" technology in their quest to find a cure for pancreatic cancer and diabetes. This is an optimistic enough undertaking in its own right, especially considering rather dreary financial situation and the long line of failed products that they have in the past. Not long after that, medical marijuana came into play and right now NVLX are also speaking of treating breast cancer with the encapsulated cells.
There is nothing wrong about that, of course, but we somehow feel that there really isn't enough concrete information about NVLX's actual progress and it seems like there's way too much artificial hype around the company. We also know what could happen if the bubble bursts.
Multi-Corp International Inc (OTCMKTS:MULI) Dropping On High Volume
In the last trading session from yesterday the stock of Multi-Corp International Inc (OTCMKTS:MULI) dropped the gain in price that it made the previous day.
Yesterday MULI's stock plummeted down on high volume finishing with $0.88 per share at market close. The drop was a significant 35% that led to the deflation of price from above the $1.30 mark to the aforementioned $0.88. Also MULI's stock traded in a very high volume of approximately 2.5 million shares yesterday generating a total trade value of $3.45 million.
As we informed you yesterday they have a recent announcement about a drilling program for the Cave Pool Property located in Eddy County, NM. The property is estimated to have a net present value of over $79 million. How do you will they manage to pump $79 million worth of oil and natural gas out of the ground is a big question. Let's take a look at the numbers of prime interest from their most recent report filed with the SEC covering the period ended September 31, 2012 to see if they will be able to do it
The revenue is not such a big problem. As we know they are an exploration stage oil and gas drilling company. What is most worrying is the fact that they have $0 cash and some $123 thousand in intangible assets. In other words they literally don't have any equipment whatsoever, nor do they have the money to rent it.[BANNER]
Also just as a reminder of our previous article, we did the research on the current CFO (former CEO) of MULI, Mr. Robert Baker and we found out that he was the guy at the wheel of a company called Global Resource Energy Inc (OTCMKTS:GBEN). He resigned from his post back in March, but if you were reading our articles about them you would most probably know that GBEN have had quite a lot of paid promotions before Mr. Baker's resignation.
Maybe Mr. Baker saw that there was no more money to be squeezed out of GBEN since their stock got to the triple zero mark and decided to leave them for dead. Furthermore according to their official filings MULI's office is located at 3651 Lindell Road, Suite D 414, Las Vegas, NV 89103. As you can see on Google Maps it's your regular office building, however this is not the first time that we see this address. We have covered several penny stock companies with an address located there.
The fact is that if you do a quick search on Google about that address you will see that one of the first links that show up is this advertisement for virtual offices. This of course indicates that MULI's head office might not even be located in Las Vegas.
With all that in mind we can say with clear conscience that MULI is a risky stock to invest in. Be sure to always do your due diligence when investing in penny stocks and be sure to weigh out all the risks before taking a bet on MULI to avoid being burned.
GDT Tek Inc.(OTCMKTS:GDTK) Recover On Pump
Throughout April GDT Tek Inc. (OTCMKTS:GDTK) has been climbing up the stock chart without a care in the world. They regularly put out PR news just to remind everybody they are still doing something. The CEO of the company must have been rather busy doing all the PR by himself but with the recent appointment of Ms. Maxine Pierson as Executive Vice President they can now do twice as many interviews as before.
On May 10 it seemed they lost some steam as the ticker bombed by more than 30% to close at $0.032. Just two days later the situation has been remedied and yesterday saw them rise up to $0.057 with the amazing 2.7 million shares traded. In achieving this GDTK has to thank not only themselves but also WallStreetScoop who started touting them fervently. On the next day the affiliates of EliteTradersGroup also joined in on the effort with all of the participating pumpers disclosing compensations of $5000. [BANNER]
GDTK also did their part with another news that is a bit more significant this time. They have finally decided to get current with their financial reports and it was about time if you ask us. Their latest report is the one for the June 30, 2012 fiscal year end. Back then GDTK was in a dismal position having:
The accumulated deficit of $26 million should also be mentioned.
Two week ago WallStreetScoopt were targeting another company - UOMO Media, Inc. (OTCMKTS:UOMO). Back then they received a much larger sum for their services in the amount of $30 000. Since the end of the pump the ticker is still trying to recover.
With no up-to-date information about their operations, no meaningful news and with an ongoing pump it should be quite obvious what the right decision is when it comes to the stock of GDTK.
Western Graphite, Inc. (OTCBB:WSGP) Crashed, as Predicted
As I pointed out in my previous article, Western Graphite, Inc. (OTCBB:WSGP) is a pump job and it was due for a reality check in the form of a quarterly financial report. The company filed it, and crashed.
The price was slowly creeping up in the start of the session, and then the filing came. WSGP dropped about 65% in a matter of minutes. Eventually it recovered to close at $1.51 per share for a 20.11% loss on a new volume high of nearly 2.6 million shares.[BANNER]
Here are some of the basic numbers found in the quarterly:
The report confirms that WSGP acquired its properties for shares of stock. The company also owes $1.5 million in cash for the Amorf Graphite property. That's money WSGP simply doesn't have. With the shares issued for the properties, the number of outstanding shares (OS) has gone up to 71 million. This means the market cap of WSGP is still about $107 million.
While WSGP recovered after the initial drop, at $1.51 it is still over-priced. The fundamentals simply can't support this price level. Unless the company manages to pull off some miracle, the price will readjust to reflect the real worth of WSGP. The blind faith of believers can't deny reality forever.
Vista International Technologies, Inc. (OTCMKTS:VVIT) Moving Up
Yesterday's trading session saw Vista International Technologies, Inc. (OTCMKTS:VVIT) gain as much as 25% and the trading volume broke through the roof. What caused it? Well, it could be the email that OTCMagic sent out after the end of Tuesday's session or it could be the positive news that we have seen from VVIT in recent days. Most likely, it's a combination of both. Do VVIT's shares really deserve that much attention, though?
As we wrote in our previous article on them, VVIT are not your typical penny stock company. Unlike most of the ventures we deal with, they have working operations, processing facilities and, dare we say it, a rather interesting story. [BANNER]
They have been around for quite a while and they have developed a piece of technology that is supposed to turn waste into energy, thus reducing our environmental impact. They have been somewhat successful with the Thermal Gasifier in the past and the machine is now in its third generation. According to their latest annual report for the fiscal 2012, they expect that it will be the primary source of revenue in the future. What's even better, on March 25, they announced that they are starting work on a new project which will incorporate the newest Thermal Gasifiers.
In the meantime, they have a processing plant in Texas which is used to convert tires into fuel and for the last couple of years, it's been VVIT's sole source of revenue. And it seems to be doing rather well. We see a steady growth in the proceeds from it year-over-year and according to one of the latest press releases, the first quarter of 2013 has exceeded all expectations.
Financial situation? Well, it's not perfect but, as we mentioned, the revenues are increasing with every quarter and the losses are shrinking which would suggest that they are working on streamlining the manufacturing process. Additionally, they announced recently that they are about to secure financing amounting to $6 million which, if completed, will definitely help.
The most recent figures are dated December 31, 2012 and here's a quick summary of the most important ones:
All in all, VVIT appear to be a company with potential, an interesting piece of technology and, most importantly, operational progress. So why, you're wondering, are they stuck at just $0.15 per share even after yesterday's run?
Well, OTCMagic tell us that it's because nobody has ever heard of VVIT, but that's not strictly true. The last time we wrote about them, there was a heavy promotional effort and we received over 40 emails in just a couple of days. The pumpers' efforts, coupled with the string of press releases that sounded just as optimistic as the ones we read today resulted in a run that you don't see every day even in Pennyland - over 600% added in just a couple of weeks.
Once the emails were gone and the excitement from the press releases died out, however, it all went pear-shaped and in just a couple of days the ticker wiped out most of the gains. Since then, VVIT's shares have not been able to go anywhere near the $0.35 high that they reached during the peak of the pump.
Currently, the mailing activity is nowhere near as intense as the what we saw in March, but in terms of PR's, things look pretty much identical. Does that mean that VVIT will score a similar peak followed by a huge crash?
Only time will tell and, of course, we will be sure to check on them, but one thing that you should probably keep in mind is that according to the annual report, quite a lot of debt was converted into common shares at the end of March when the price was at its lowest. If this stock is to be sold, we could see the ticker heading south once again.
|Tue, May 14, 2013|
The Emails Stopped But The Pumping Continues For Endexx Corp (OTCMKTS:EDXC)
July 2003, Arizona. The publicly traded company that is now known as Endexx Corp (OTCMKTS:EDXC) is called PenaMed Corp. and it would appear that some people are not too happy with them. There was a complaint filed with the SEC according to which PanaMed's officers have issued some misleading press releases that made quite a lot of people invest in the company's stock. Then, the next annual report was never filed which enraged the investors and made them lose money. The documents show that the allegations turned out to be founded (at least that's what the court thinks) in the end and PanaMed were forced to pay some civil penalties. [BANNER]
But let's not get too carried away with the history lessons. That was quite a while ago, PanaMed is no more and the only thing connecting it with the current Endexx is the fact that the two company's offices are located in the same quiet town of Cave Creek, Arizona. SEC filings from years gone by show that PanaMed actually featured a real address on their documents, while Endexx prefer to go by anonymous P. O. boxes, but we already talked about that in our previous article.
We also mentioned that we were rather confused by their newest and, supposedly, very exciting project - the m3Hub. We gathered from the press releases that it's supposed to have something to do with the medical marijuana industry, but after spending quite a lot of time clicking all the links on the website, we could fathom nothing.
Luckily, a website called Small Cap Voice (SCV) were on hand to help us. On May 9 they issued a press release in which they said that they have made an interview with EDXC's CEO, Mr. Todd Davis. We wondered for a little why would SCV choose EDXC of all the companies out there, and a few clicks on their website revealed the answer - they have been paid to do so.
That's right, SCV's disclaimer states that they have received $2,500 from a third party for thirty days of service (whatever that means) and EDXC is not the only ticker that has been featured in their interviews. SCV received $5 thousand for their campaign on WebXU Inc (OTCBB:WBXUE) about a month ago, however, as you can see from the chart on the right, things have not been going too well.
But let's focus on EDXC. We are happy to report that we have finally managed to understand what the revolutionary m3Hub platform is all about. It's rather difficult to explain, but we'll try anyway.
It is going to be something like the Google Search for medical marijuana. Basically, if you need a hydroponic system or, in fact, any sort of marijuana related piece of technology, equipment or know-how, you can simply log into m3Hub and you will be able to find a company or a person that is able to provide you with what you need. Mr. Davis talked at length about the experience that EDXC have working with those sort of things and the expertise that some of the people in his team possess and it all sounds great.
In addition to the medical pot platform, Mr. Davis also talked about the one of EDXC's other subsidiaries - Global Solaris Group and he said that this daughter company recently won a building project in Arizona. It will start in about six weeks and that sounds even more impressive.
He also said that they are developing a brand new mobile phone app technology and, basically, when you listen through the whole 19-minute interview, you get the feeling that it gets better and better all the time. But let's not get too excited.
While the website for m3Hub appears to be live, there is nothing to suggest that the platform itself is operational. We have no way of knowing how EDXC are going to raise money out of it, but we reckon that before they start doing it, they will need to have quite a lot of clients and visitors on their website - something that could take some time.
Then there's the story of Global Solaris. Mr. Davis says that they have won a building project through this entity but having read through EDXC's latest financial report, we can't really understand what he's on about. As we mentioned in our previous article, the information is as up-to-date as it gets, but unfortunately, it doesn't sound too good - as of the end of March the current liabilities amounted to $1.4 million while the "current assets" and "revenues" sections were filled with zeros.
With all that in mind, we reckon that Mr. Davis and EDXC have a tall mountain to climb and while the constant awareness campaign might give the ticker a little boost, the effect will probably be short-lived, which is why we would advise you to be extremely careful when considering EDXC as an investment option.
Hemp, Inc. (OTCMKTS:HEMP) Spikes on Press
After nearly three weeks of silence, Hemp, Inc. (OTCMKTS:HEMP) finally released another piece of news regarding their business. Well, this is what we thought when we saw the 20% spike in stock price that happened during yesterdays trading session. In reality, when we read the whole article we were left somewhat baffled.
The gist of it is that Mr. Ryan Loflin will excavate sixty acres of his father's alfalfa farm to try and plant hemp. This whole process is going to be made into some sort of a documentary movie. By now you must be wondering what this whole thing has to do with the company - apparently they are serving as an executive producer. Not exactly the confidence boosting substantial news we had hoped for. And wouldn't you know it in early trading today the ticker is already nearly 5% down from its previous close of $0.042.
Taking a look at their annual report makes it painfully obvious that the company is in a quite dire situation. The results they managed to achieve for the whole 2012 are :
Ultimately it is up to you whether to commit to a trade or not but the facts clearly show what the right decision is when it comes to HEMP's stock.
Crown Marketing (OTCMKTS:CWNM) Falling on Pumps
The outcome of the pumping campaign for Crown Marketing (OTCMKTS:CWNM), is turning out sour for many people that invested in them.
After 2 optimistic trade sessions on April 8 and April 9, when their stock price reached $0.065, they have been falling and they started today at the $0.045 mark. There was significant volume registered in the April 9 trade session of around 4.1 million shares traded at a total trade value of approximately $264 thousand.
To the moment that this article is being written they managed to climb a little to $0.051, which reduced the percentage that they are down from yesterday to 11.92$. The pump effort from which the last email was sent on April 12 doesn't seem to be really predictable. After April 12 there is no actual upward movement in stock prices and volume so these last emails from the paid promotion may be considered a pump failure.
Also the last press release we have from the company dates back to April 9 and we covered it in our article concerning CWNM from the next day. That press release contained information about Crown Marketing entering into a financing agreement with a misterious $100 million fund for medical marijuana development.
The fishy part is that there is no actual information disclosed about this agreement, nor there are any clues, whatsoever to the identity of this misterious fund. Furthermore they still havn't filed an 8-K report concerning this significant event and their due date to do this is tomorrow (SEC regulations state that the company has a 4 business day period to file 8-K reports for any significant events).[BANNER]
We are also in anticipation of their new quarterly report, which should come any day soon in order to see if CWNM have any big hanges in their financial state and in their structure and business play. In the meantime we can take a look at the numbers of prime interest from their last quarterly report, covering the period ended December 31, 2012 which are listed below.
cash: $5 thousand
As you can see they dont look pretty good. Also keep in mind that CWNM doesn't have any marketable product at this stage. All they are now is smoke and mirrors and we are waiting for reports to be filed with the SEC to clear up the air around them.
Until then make sure to do your due diligence, weigh out all the risks and proceed with caution, especially when you are looking at investing in a stock that is being promoted.
Western Graphite, Inc. (OTCBB:WSGP) Pump Crash Imminent
Western Graphite, Inc. (OTCBB:WSGP) can crash very soon, and destroy the investments of careless investors. The company should be filing its quarterly in the coming days, and things may get ugly.
Since it started trading in April, WSGP has gone up about 300%. Yesterday it closed up 7.39% at $1.89 on nearly 2 million shares. At this price the market cap of WSGP is around $110 million.
What's wrong with that number is the fact, that so far, WSGP hasn't proven it has anything worth that much. Actually, the company's filings show that WSGP had $73 in cash and $3,937 in deposits as of Dec. 31, 2012. Since the company hasn't announced any financing, we can assume those numbers are still correct or they are lower.
As for the properties WSGP has, there is no indication whether they are worth anything, except that their previous owners parted with them for shares of WSGP. The quarterly report should shed some more light at the situation at WSGP.
Until then, traders and potential investors should consider the facts around the way WSGP has been set up. It used to be a shell doing nothing for years. Around February 2007 the company sold 3 million shares to unnamed parties for $0.02 per share.
Pretty much nothing happened until February this year when the company announced it would merge with a subsidiary to change its name and effect a forward 10 for 1 split. This way the unnamed parties mentioned above got their shares to 30 million, and those are freely tradable shares effectively acquired at $0.002 per share.
Last but not least, the paid pumps, tout reports and the hype created by the company's own press releases should give traders an idea of what WSGP really is and where it's going. If that wasn't clear enough - it's a pump job.
Nothing New Around P.M.& E Inc (OTCMKTS:PMEA)
Another month, another press release and another pump for P.M.& E Inc (OTCMKTS:PMEA). That is basically what has been happening to them for the better part of six months and there is nothing really solid to suggest that things will change any time soon.
Why would we say that? Here is one thing to consider: it's been nearly three months since they announced that they are carrying out negotiations with a company that is supposed to distribute their revolutionary solar panels in Russia. Since then they have not said anything about proceedings on this front. We can't say that we're surprised. [BANNER]
A month before those discussions started, PMEA issued a press release according to which there has been some testing on their GEN4 MPSV photo voltaic system and they said that the results are impressive. Now, four months later, they say that more testing has been done and this time, they are trying to incorporate fuel cell technology. What can we deduce from those announcements?
It's quite obvious, isn't it? The system is nowhere near ready for marketing and they still have some considerable way to go until they are able to start generating the all important revenues. Unfortunately, no deadlines are mentioned in the press releases which means that some of the potential traders will decide to play it safe and will not risk too much with a technology that is not yet completely developed.
Then there's another question: "Will it be developed at all?". We wrote in our previous articles that while PMEA don't have any liabilities, their cash resources amount to just $2 thousand and we really can't see how this amount will be enough for them to get the whole show on the road. If we have to be completely honest we're even struggling to see how they managed to pay for the testing mentioned in the press release.
And the fact that they are developing such a high-end, state-of-the-art technology when you have in mind that thee total net losses since inception have not exceeded $20 thousand is still just as unfathomable to us as it was a couple of weeks ago.
Despite all this, PMEA are constantly targeted by paid promoters and while the effect of the last campaign wasn't really all that remarkable, it still managed to push the price down below the $0.02 per share mark. Yesterday, the ticker bounced a little and now 24-7 Stock Alert are trying to create some more hype around PMEA once again.
So who are 24-7 Stock Alert? Well, they are a relatively small newsletter and they are owned by the Trinity International LLC, according to their disclaimer. We have been receiving their picks for a relatively short period of time, but we still see some pretty appalling results from some of their promotions. On April 23, for example, they were part of the campaign on DoMark International Inc (OTCMKTS:DOMK) who managed to make a short run in the right direction before crumbling down. DOMK's value has plummeted by as much as 36% compared to the high of the pump.
MineralRite Corp (OTCMKTS:RITE)'s promotion from April 25, however, took on a different scenario and as soon as the emails started flying around, the price went south meaning that just a couple of days later, RITE's shares were 65% cheaper.
This goes to show that while PMEA managed to stay afloat during the previous campaign this new, smaller one could still bring it down. At more than $0.02 per share, there certainly is room to maneuver and if you don't weigh your risks carefully, you could end up losing quite a lot of money.
SMA Alliance, Inc. (OTCMKTS:SMAA) Promoted in the Middle of a Slide
It seems the promotional efforts are wasted on SMA Alliance, Inc. (OTCMKTS:SMAA) as the stock slides on massive selling in the past few days. The latest pumpers' email came on Tuesday, but that may not be enough to stem the exodus of investors. The ticker lost 20% to $0.0816.
The emails for SMAA were clustered on May 13th and 14th, with a small budget of $12,500. It is a mystery why pumpers would choose a ticker that has been sharply retreating in the past days. The emails themselves may have triggered enough activity so that unhappy investors could finally shed their holdings of SMAA. The new trading session will show the effect of the latest email, but the message from May 13th coincided with record selling.
The latest email coincides with the announcement of a software release, of a new program called Car Blaster v. 6.4 that aims to decrease program start-up times. The official release will be after Tuesday's market close, so we may expect after-effects on Wednesday.
Not even the relatively solid business of the company was enough. SMAA claims that it feeds data to AOL, eBay and WalMart, leading to resources formidable for a pink sheet company:
Although the separate emails come from a crowd of different pumpers' emails, the paying party is one- RJLQ Investments S.A. This entity seems to be devoted entirely to SMAA, its only promotion in our database, with a total of 10 emails.
This year to date, SMAA has been generally up, with some periods of retreat. The ticker has been supporting itself with regular press releases on expansion, which happens fast in the world of IT services. The latest promotional emails may actually break a good thing, leading to a sharper drop after new investors withdraw. This may partially explain the selling from May 13th.
Also, we don't know when the promotions will stop, which can lead to a further drop in price. While SMAA has a longer-term outlook and seems accessible at 8 cents, this is no guarantee that the ticker will try to recover previous higher level, as high as $1.70 two years ago.
Another Pump Is in Full Swing For Terra Tech Corp. (OTCBB:TRTC)
More than a month has passed without any promotions for Terra Tech Corp. (OTCBB:TRTC) but now the pump alerts have returned. This time the StockPublisher and PennyStockCrew are in the lead with their compensation of $70 000. The various lesser newsletters - ClubPennyStocks, StockHideout, PennyStockProfile to name a few, bagged sums ranging from $10 000 to $15000. Most of them were hired for a day or two of promotional services so if others don't get involved it should be a short lived affair.
Unlike the other companies that joined the medical marijuana sector earlier this year, TRTC at least seem to have a legitimate business plan. They have been quite active in pursuing their goals and the latest couple of press releases have all been quite significant. The acquisition of Edible Gardens was completed successfully and a distribution contract with GroRite Garden Centers was signed last week. Under the terms of the contract GroRite will purhcase the majority of their plants for sale form TRTC's subsidiary. And most importantly the company has secured a common stock purchase agreement for up to $5 million so for now they have secured the funding they required.[BANNER]
On paper everything looks really promising but all that matters is their financial situation. They finished 2012 with the following results:
The massive net loss should raise some concerns but these numbers aren't representative of the company's current situation. A quarterly report should be filed any time now and it will show how the recent slew of activity has affected their financial indicators.
As you might expect financing such operations hasn't been cheap. On May 9, TRTC filed a S-1 form for the registration of 44 million shares and if the company expects to continue with its expansive goals further dilution should be anticipated.
From an investor standpoint the ticker hasn't been doing so well. Since the pump they underwent back in February and the following crash it has been steadily sliding downwards. Yesterday it went further down by another 10% to close at $0.141 with a substantial traded volume of more than 2 million shares.
In March PennyStockCrew touted another company - Oryon Technologies, Inc. (OTCMKTS:ORYN). The ticker plummeted down when the emails stopped and it is still unable to recover. At the same time PSC collected another $100 000 for a job well done and moved on to find new picks leaving many investors trying to recover from their losses.
Little Movement for Cloud Star Corp (OTCBB:CLDS) Stock
Since the last big drop in the stock price of Cloud Star Corp (OTCBB:CLDS) around April 22 when it dropped to $0.80 per share, the price went up and is hovering just above the $1 mark for the past week of trading.
It stayed stable in the last 7 trading sessions going a bit up and a bit down every day with a current price of $1.02 from yesterday's trade session. Be aware, however, that a paid promotion is underway and there may be a great increase in the price per share accompanied by high volume of stock being dumped by insiders, which may eventually cause the value of the stock to diminish.
The PR team of the company is aiding the pumps with optimistic press realeases the last one of which is from May 1 and it was concerning a reaceived funding of $350 thousand from an investor in the face of Leeward Ventures. The whole investment would total $500 thousand and will be used to aid their technology development and also for marketing of CLDS's technology.[BANNER]
The deal is that there is absolutely no filing with the SEC that accounts for this event (an 8-K report should be filed 4 days after such a significant event) and its still shady what Leeward Ventures got in return for their investment. Let's take a quick peak at what the numbers of prime interest from their latest quarterly report covering the period ended November 30, 2012 have in store for us.
The numbers don't really suggest them being able to produce or market anything at this stage. Another factor that we see as disturbing are the people who are touting them. The promoters in question are Superst0ckplays.com and BuyPennyStocks.com.
Both of them touted Goff Corp (OTCBB:GOFF), a dying ticker that we were covering for around a month since it started trading. GOFF managed to reach a price of $0.64 on April 8 on a prolongued paid promotion and then plummeted reaching their current value of $0.02 per share, which is roughly 96% down from the peak.
Another company that both of these pumpers touted is Octagon 88 Resources Inc (OTCMKTS:OCTX), who are still going strong with a price of $8.66 per share. The problem with these guys is that we already saw a huge dumping of around 3.3 million shares in just 3 days at the peak of their pump campaign which came to a total value reaching approximately $25 million.
In fact OCTX are an oiling company whose office is currently located in Switzerland and is run by the Tighe brothers and their close circle of business partners. We covered them and you can see more details about their dumping scheme in our latest article about them. To the right you can see the chart showing the dump in the end of April and the current rise in anticipation for a second dumping fiasco.
It is still uncertain where CLDS's stock will go, but always be sure to do your own due diligence when investing in development stage companies, because things aren't always what they seem.
African Copper Corp. (OTCBB:ACCS) Not for APS, After All
Enough was enough for African Copper Corp. (OTCBB:ACCS). The ticker neared 20 cents, but very quickly buyers from the past days turned to sellers, locking profits as soon as possible. The gain was a mix of press releases, side promotions and the rumor that ACCS may be the next pick of Awesome Penny Stocks. The ticker was mentioned on one of the numerous affiliate sites of APS, and just the little chance that ACCS would receive a long-term pump from one of the leading penny stock newsletters was enough for a few extremely good days.
But this was soon over, as the central promotion never materialized, and ACCS was carried by a few emails from smaller pumpers, waiting to log some of the gains that APS could have achieved more successfully.
Otherwise, ACCS is a vehicle ticker for the Africa-based mining company, and still the company's main activity is listed as education services. Past records of this business show the following financial picture:
A 13-D filing with the SEC reveals how ACCS switched identities. On April 2nd, the company's CEO and president Andrew Stone acquired 720 million shares for $18,000, and later retired 620 million shares in exchange for a promissory note for the amount of $9,300. This left Stone with 100 million underpriced shares, which he could continue to sell for profits, given that even the depressed price of ACCS is high enough.
The reason APS is expected to make a new selection soon is the long run of the Goff Corp. (OTCBB:GOFF) pump, which already seems beyond repair, after the last email landed on April 19th. There is little warning what the new candidate would be- any company could be taken to unreasonable heights with enough mentions that reach new investors, as well as old ones who appreciate the APS effect.
The loss for ACCS on Monday was more than 43$ to 8 cents per share, a price that could continue to drift or fall further as interest in the ticker wanes. If ACCS manages to pull out a press release or two, some gains may be expected, but it is best to stay away from ACCS unless you could afford losing a big part of your investment.
Investors Are Getting Impatient With Neutra Corp (OTCBB:NTRR)
After announcing that they are joining the medical marijuana business, Neutra Corp (OTCBB:NTRR)'s shares did what everyone was expecting them to do - they jumped sky high. The announcement came at the end of March and in a few short days, NTRR reached their 52-week high of $6.50 per share. The performance during the last couple of weeks, however, has not been quite as promising and yesterday, they closed the session below the $1 mark - something that has not happened for almost two months. So, what went wrong? [BANNER]
Well, for one, there hasn't been much news around the company. There are quite a few press releases, but not much in terms of actual information. Take the PR from May 8, for example. The headline sounds extremely promising telling us that NTRR are about to expand their horizons in the medical cannabis business, but when you open and read through what they actually have to say, you will see that they don't really have anything to shout about. Apparently some negotiations are being carried out but we get no information on who the other parties are, and there are no expected deadlines for the signing of agreements, joint ventures or partnerships.
They are already part of one joint venture with a company called PurLife Distributions, Inc. The agreement was signed back in February and it has absolutely nothing to do with NTRR's medical marijuana business. The lack of news around the partnership, however, leads us to believe that it's not exactly flourishing.
As for the medical pot nutraceuticals business, it's still way too early to call it since they have been at it for less than two months. One thing is for sure - NTRR's new CEO, Mr. Sydney Jim, will have his work cut out for him getting the ball rolling with the sort of financials found in the latest annual report. It covers the twelve months that ended on January 31 and we have summarized the figures below:
And since we mentioned the brand new CEO, we also have to say a few words about the old one - Ms. Cindy Morrissey. The press release informing us about the changes in the management team is dated May 3 and it says that Ms. Morrissey is retiring after years of leading start-up companies. And that got us wondering: "Haven't we heard that name before?".
Of course we have. The last time we mentioned her was when we were covering one of Aristocrat Group Corp (OTCMKTS:ASCC)'s pumps and if you read through our article, you will see that Ms. Morrissey is also at the helm of Emerging Healthcare Solutions, Inc. (EHSI) - a company whose shares got suspended by the SEC due to lack of information and constant touting by websites and newsletters. Still, she's gone now and there is absolutely nothing to worry about, right? Probably. But we're not 100% sure.
If you have a look through one of our previous articles on NTRR, you will see that until about a month ago, they shared their headquarters with one of the most heavily promoted companies this month - Enviro-Serv Inc (OTCMKTS:EVSV) f/k/a Transfer Technology International Corp. (PINK:TTIN). NTRR apparently saw that and according to the 8-K informing the public about the resignation of Ms. Morrissey and the appointment of Mr. Jim, they have a new address (3572 Shady Brook Lane, Sarasota, FL 34243) . We can spot two problems with that.
The first is quite obvious from the picture on the right - it's a suburban house in Florida and you would agree it's not really suitable for controlling the operations of a company that is about to start making millions.
The second one is that in NTRR's annual report for 2012 the same exact address is quoted as Ms. Morrissey's home residence. We know that it's all a bit of a conspiracy theory, but this fact still raises the question: "Is Ms. Morrissey really out of NTRR now?".
Whatever the answer, we reckon that doing your own due diligence and conducting a proper research is absolutely critical before jumping in on the medical marijuana craze that has been around NTRR for the last couple of months.
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