CAMS, EMPM, SMNG – Pump And Dump Alerts October 21, 2011
This week were exposing these three popular Pump & Dumps: Cambrian Systems (CAMS), Empire Post Media (EMPM), and Strategic Mining (SMNG).
That said, welcome to Pump and Dump Friday, where every week we highlight a few of the bogus promotions that are going on in penny stocks.
If you dont know how these scams work, be sure to check out this free report that exposes the whole thing.
Without further ado, here are this weeks disasters waiting to happen:
Cambrian Systems (CAMS)
Yesterday this company had some great news They signed a Letter of Intent to acquire 84 acre lease in the Green County, Kentucky.
It sounds like great news, so of course, the pumpers were all over it.
OTC Penny Picks fired up the hype by saying CAMS is up 45% on huge volume
They got a whopping $10,000 just to say that!
Here we go again
Some people just like to beat a dead horse. Why might the stock be up? Could it be from the news or maybe from the pumpers sending out email after email?
Or just maybe this is an honest to goodness real company nah, lets not start drinking the Kool-aid just yet.
Lets take a closer look at this stock
I found the press release about the land acquisition on Yahoo Finance. Thats good. Whats bad is the lack of details. So the companys acquiring land. How much are they paying? How is the deal structured? Whats the financing look like?
Id read the actual Letter of Intent, but since the company doesnt file documents with the SEC, its a little hard to do any research.
What I did find online was their quarterly report from June 30, 2011.
It didnt help. I noticed right off the bat, the format was all wrong. Let me give you an example. As a first year accounting student, professors drill into your head the balance sheet is a snapshot in time.
The balance sheet shows what the numbers look like on a very specific day.
So thats why I was confused when their balance sheet was labeled for the period of January 1, 2011 to June 30, 2011. Thats not just wrong, its factually inaccurate. Remember people, this is what first year accounting students study. When a companys CFO makes a simple mistake like that, it doesnt instill confidence.
The other thing bothering me
The numbers are uglier than a pig in mud.
As of June 30, the company had no cash so how are they buying this land? They have no revenue (miss labeled as income on their financial statements), no operating expenses, and no net income!
Something doesnt add up and thats why you should stay away.
Empire Post Media (EMPM)
The last time I wrote about this company the inevitable happened The stock spiked on the pump and dump promotions. Then predictably, the shares fell off the cliff after the pumpers walked away.
If you listened to my advice, you saved yourself thousands of dollars and a lot of heartache.
But the pumpers didnt go too far.
Stock Professor just got paid $35,000 for promoting EMPM.
Whats their hype?
The stock is finally showing strength and new news!
The big news wait for it wait for it they delivered a new pilot for a reality television series. Oh, lets rejoice just what we need, another reality TV series.
So whats the stock done?
Nothing.
According to the data I could get my hands on, the stock is flat. The shares have traded a whopping 6,700 times. At $0.19 cents a share, thats a huge money trade of $1,273. Thats just sad
Shocking analysis guys. For $35 grand, youd think theyd get a little more bang for their buck
Stay away!
Strategic Mining (SMNG)
Strategic Mining (SMNG) is the stock.
Epic Stock Picks is the pumper.
And $10,000 is what they got paid to send out an email about the company.
Their reason to buy the stock is down from recent highs. I dont know about you, but thats a squishy reason to buy a stock. Given that logic, you should have been buying stocks during 2007 and 2008 and if you did, youd be bankrupt!
Anyway, I took a look at the company. Believe it or not, they actually have documents on file with the SEC!
Unfortunately, the company looks as strong as a 110 pound weakling.
They have a whopping $248 in cash and over $475,381 in liabilities. That doesnt look good. They also show no revenue EVER, and they have expenses of between $130,000 and $160,000 a quarter!
Better yet, they have a going concern statement from their auditors. You know what that means! Their own accountants dont think they have enough cash to operate for the next year.
Scary stuff, and enough of a reason to stay away.
A final word (and warning).
So that takes care of a few of this weeks inglorious pump and dumps.
Remember, theres a lot more of this going on each week than we highlight here. Here are some others we saw this week:
SkyPower Solutions (SPOW) pumpers paid $5,000 to tout this one.
MC Endeavors (MSMY) pumpers received $500 for the hype.
Medical Care Technologies (MDCE) pumpers got $500 for mentioning this company.
Passionate Pet (PPET) pumpers pocketed $5,000 for touting the stock.
Takedown Entertainment (TKDN) pumpers grabbed $120,000 for their promotions of this stock.
WrapMail (WRAP) pumpers dumped $5,000 into their wallet for a mention of this company.
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,
Brian Walker
Category: Pump & Dump Alerts
