This week we’re
exposing these three popular Pump & Dumps: Sunpeaks Ventures
(SNPK), Empire Post Media (EMPM), and IDO Security
That said, welcome to
Dump Friday, where every week we highlight a few of the “bogus” promotions
that are going on in penny stocks.
If you don’t know how these schemes
work, be sure to check out this
free report that exposes the whole thing.
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Without further ado, here are this week’s disasters waiting to happen:
Sunpeaks Ventures (SNPK)
I’m going to get straight to the point here…
It’s been a bit over two weeks of pumping and shares of SNPK are up over 100%. Take a look at the action for yourself.
So is there any news out to
justify the price action? No…
How about earnings reports? (Cue sounds of
Nope, there’s nothing but the pumping happening!
Like I said last time, this is a big contract for the Free Penny Alerts
conglomerate. They have the full court press on! It really does remind me a lot
of their last pump… NSRS.
It reminded me so much, in fact, that I felt
compelled to pull up the emails from my inbox and compared the two lists.
I pretty much knew they’d be similar, but look at some of the email titles –
they’re almost exactly the same!
And here’s the SNPK list.
It’s sad really. “Time To Buy”, “Are You Benefiting?”, “Are You In?”, “… Is
On A Bull Run!”
So what’s next?
Some shameless stock “analyst”
company will get paid off to write a glowing report giving SNPK a $4 price
target… mark my words. It’s coming!
There’s still time left on this pump
and dump… if I could short shares, I would. Good luck trying to borrow them from
Empire Post Media (EMPM)
The pumpers picked a perfect penny stock to run a pump
and dump on here, a 3D technology company. You see, tech
creates so much buzz… and tech stocks are notorious for
running hot and fast.
With EMPM, the pumpers have
been at it for a while now… since September 23rd of last
year from what I can see.
The pumping started
with Wall St Advisors for $20,000 back then. And a month
later, Market Alert collected $35,000 to pump shares of
However, the latest stock touting service
took in the lion’s share…
Obscure Stocks raked
in $750,000 to hype EMPM! Their campaign looks to have
started on 03/24/12… so we could see quite a bit of
movement in the coming weeks.
Now, with any big
promotion you have to have lots of “news” and press
For the first six weeks of 2012, EMPM
released just nine press releases or earnings reports. And
in the last six days, there are already nine more
announcements. The best part is, the recent flow of
“news” started on March 22nd… two days before the
Hmmm, I guess you have to have
something to write about in your promo…
component to a really well run pump and dump involves a
dedicated webpage with a fact sheet on the company. It
usually has lots of positive statistics supporting a
“Strong Buy”. If you have a price target set, even
That gives the suckers reading the write
up a dream number. I could just imagine this
conversation going on in Joe Schmo investor’s house
after reading the hype…
“Look dear, I found this
great stock… it’s only $0.20, but they’re saying EMPM
can go to $0.84. I’m loading up!”
“Wow, that’s a
400% gain… we’d be rich if you dumped your IRA into
it! Do it, do it now!”
How awfully sad, but you
know it’s happening at this very moment.
usually these websites have to have a disclaimer… and it
tells everyone where the company found their research. Most times it’s just facts provided by the company,
which the pumper admits they don’t verify (that’s why
it’s in tiny print). More importantly, the tiny print
discloses their compensation.
not in number form, but in written numbers, like “thirty
thousand dollars”. But for some strange reason, the
bottom of Obscure Stocks' EMPM “report” shows an error…
I’m sure if you called, they’d tell you,
sorry, we must have a technical difficulty. We’ll fix
that right away.”
If you made that call, nothing
happens. However, if the SEC contacts them… it’ll be a
different story for sure!
Before I move on, you
should know EMPM lost $87,081 in 2011… and $61,654 in
2010. The bottom line’s moving in the wrong direction!
And that alone is enough to tell me EMPM isn’t
what I’d consider “investment worthy”!
IDO Security (IDOI)
Last but not least, we have another shady pump and dump
happening in shares of IDOI.
Penny Stock Circle,
a subsidiary of Global Marketing Media, was paid $30,000
to pump shares of IDOI. While it’s not all that much,
any paid stock touting should be viewed as sketchy at
After looking at IDOI’s financials, you’ll
Now, this stock trades around $0.55. I’d say they should be trading around $0.055.
While IDOI has $446,852 in current
assets (as of September 2011), they’re saddled with
$17,945,250 in current liabilities! Doing a quick
valuation, IDO Security has a quick ratio of 0.02x. That
means IDOI only has enough in assets to cover 2% of
I sure wouldn’t want to be their
banker right now…
Well, maybe their debtholders
see something in IDO’s latest earnings report.
Let’s hope not. According to their latest SEC filing,
IDOI lost $5.6 million in the first nine months of 2011!
And it’s not improving…
Losses in 2010
racked up to $4.5 million. The company is clearly moving
the bottom line in the wrong direction.
that’s bad enough… I’ve saved the worst for last!
The company announced a reverse stock split on
December 16th last year. That’s pretty normal stuff for
a penny stock. But here’s the kicker… IDOI announced a
1-for-3,000 reverse stock split.
Some quick math
tells us that before the reverse split… shares traded at
A minute ago, I said shares should be
trading at $0.05. Apparently I was being too generous!
A final word (and
So that takes care of a few of this week’s
inglorious “pump and dumps”.
Remember, there’s a lot more of this going
on each week than we highlight here.
As you know,
penny stocks are a great place
to invest your money. You just have to do your due diligence to stay away
from all the scams out there these days!
Until next time,