CABN, GWBU, OMVE – Pump And Dump Alerts – June 22, 2012

| June 22, 2012 | 0 Comments

Pump And Dump AlertsThis week we’re exposing these three popular Pump & Dumps:  Carbon Sciences (CABN), Great Wall Builders (GWBU), and Omni Ventures (OMVE).

That said, welcome to Pump and Dump Friday, where every week we identify a few of the potentially “bogus” promotions going on in penny stocks today.

If you don’t know how these schemes work, be sure to check out this free report that exposes the whole thing.

Without further ado, here are today’s “disasters waiting to happen”:

Carbon Sciences (CABN)

I had to do a double take after reading the pumper’s email hyping up Carbon Sciences…

Before I get into that, let me tell you all about CABN.  Carbon Sciences is a developmental stage company working on a technology to make transportation fuels and other products from natural gas methane and carbon dioxide.

Sounds great, right?

But here’s something the pumper didn’t mention in their email… CABN was formerly known as Zingerang, Inc. and changed their name in April 2007. The Company was initially in the business of offering mobile communication services to businesses and consumers under the Zingerang trade name.

Of course it makes sense to jump into the nat gas business from mobile communications – not!

Moving on, some other details I’m sure you won’t find in the pumper’s email include the company’s financial condition.  And why would the pumper’s send that… they’re horrible!

For starters, CABN has an accumulated deficit of over $8.5 million on the books right now.

And the latest quarter’s activity isn’t helping matters one bit.  You see, in Q1 of 2012, Carbon Sciences lost $887,189 on $0 revenue.

With things so bad, there’s no wonder why the pumper didn’t say a word about it.  But what they did say was shocking.  Under the disclosure laws in place for paid stock promotions, Blue Wave Advisors dropped this into tiny font at the bottom of their latest email…

“BlueWave Advisors, LLC has been previously compensated a total of one hundred forty five thousand dollars directly from Carbon Sciences, Inc for advertising and promotional services that have expired. BlueWave Adivsors, LLC has also previously purchased one million shares of Restricted Rule 144 stock from CABN.”

What, come again?

Carbon Sciences paid the pumper directly.  I’ll tell you what, if that doesn’t keep you away from shares of CABN, nothing will.  I mean really… who pays a known pumper for “advertising and promotional services” if they weren’t trying to manipulate the stock higher?

It makes you wonder.

If Carbon Sciences management was simply hiring BlueWave for other company promotions, then they’re not too bright.  And that gives you even less of a reason to invest in CABN shares!

Great Wall Builders (GWBU)

So what’s the status on GWBU this week?

You guessed it, the mighty Great Wall has fallen!  Not just fallen…  GWBU crashed over 61% in one day alone!

Great Wall Builders Chart

Oh my… what a selloff.  And how did this happen?

It’s exactly like I’ve been warning for weeks now – the paid promotional campaign on GWBU was coming to a close.  And more than likely, it was time for the “third party” to cash out.

If you were still holding shares of GWBU yesterday, I’m sorry to hear that.  It’s not like I didn’t warn you just last Friday to get out… so I’m not that sorry.

The sad part is, there was no reason for the selloff.  There was no bad press, no news, no earnings reports to spook investors… nothing.

This should be illegal right?

Unfortunately, the pumping game will continue to go on long after we forget the GWBU ticker symbol.  Next month, I’ll be warning you about a brand new campaign the Centro Azteca S.A. group is running.

Now, let me wrap up by summarizing my sentiment on GWBU with a quote off of the Yahoo Finance message board posted just yesterday –

The dump says it’s over bagholders

Look to the current price SNPK is fetching for your futures.

Well said, ujil11… well said.

Omni Ventures (OMVE)

Just what the world needs, another wannabe luxury brand clothing company.  You see, OMVE owns PRVCY Couture, Inc… and that’s exactly what they are.

The pumpers are hyping up PRVCY as the next True Religion.  Regular readers of our pump and dump alerts know this trick by now – associate your sad little penny stock with a big name company to add a level of legitimacy to the penny stock.

Works every time…

In fact, this recent paid stock promotion reminds me of another “high end” jeans pump.  It was Lyric Jeans (LYJN) back in January – and 007 Stock Chat was paid to hype that jean company back then.

This time around, it’s Moving Pennies doing the pumping on OMVE.

So how about the Omni Ventures as an investment?

Forget about it!

Their financials are a wreck, like most of these pumped stocks.  OMVE has racked up a $7.6 million accumulated deficit.  That gives shareholders a lot of loss to spread around… wait a second – we want profits to spread, not losses!

As far as their latest quarter, let’s just say Q1 didn’t go so well for Omniventure…

This latest quarter, OMVE lost $4.1 million on -$3,337 in sales.  Come again?

Yes, the company lost money on their sales before even considering financing, expenses, etc.  And that’s a big red flag for investors!

Don’t listen to the hype of the pumpers about who’s wearing PRVCY jeans or who’s tweeting about them… pay attention to what real investors are supposed to – the bottom line!

A final word (and warning).

These are just a few of the potential “pump and dumps” we’ve seen lately.  Remember, there’s a lot more of this going on than we can 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 schemes and scams out there these days!

Until next time,

Brian Walker

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Category: Pump & Dump Alerts

About the Author ()

Brian joins the Penny Stock Research team as a seasoned independent trader and financial analyst. Brian graduated with a B.S. from the University of North Florida and now resides in Scottsdale, Arizona. With a background in economics and statistics, he has a keen ability to uncover profitable and growth-focused companies. He has years of real life know-how in analyzing fundamental and technical data that gives him an edge drilling down on companies and financial results. With over 15 years trading experience, Brian has become an expert in the ever-changing equities markets. Today, he scours the markets hunting for penny stocks that offer low risk and high reward.