http://www.stockpatrol.com/article/key/pennystockepidemic
Please read the above link. It's not too long and is very informative.
Note: The above article was posted earlier but deleted because it is general, not related to SLJB. Below are salient points from the article that relate to SLJB.
Press releases that are issued to create a buzz about a company. Upon close examination, these press releases are short on details and long on unrealistic promises. They provide just enough information to whet an investor's appetite.
All of SLJB's Middle East deals and the hyped up revenue projections were done via admittedly false (fraudulent) PR statements.
Announcements that an obscure under capitalized company is about to become a player in a cutting edge industry.
Granted construction is not what people think of when they hear cutting edge, but SLJB certainly led investors to believe they would go from a sleepy 20 year old lumber yard to a major construction supplier/player in the Middle East.
Companies claim to have relationships with better known, successful businesses. Usually, these relationships are non-existent or insignificant.
SLJB: "We're working with Big 4 accounting firms on our financials."
The company being promoted does not file regular public financial reports with the SEC.
No comment needed.
There has been unusual, excessive trading in a stock. There have been sudden dramatic price swings for the stock of a company with no track record, discernible business or demonstrated revenues.
These patterns are what tipped of the RCMP to SLJB initially.
The company has engaged in one or more reverse-mergers.
My understanding on this point may be wrong, but is this not what Loftwerks KORE did?
The business is incorporated in Nevada. Nevada corporate law affords the individuals in control of a company to make significant decisions without first notifying or gaining approval from public shareholders.
Ding ding ding ding!
Canadian connections. Tiny companies have proliferated with the following in common: they are incorporated in Nevada, have offices in Canada (usually British Columbia), have attorneys in Florida, California or New York, and often use transfer agents housed in Utah. Their goal is to create a jurisdictional blend that allows them to scam investors in the U.S., Canada and around the world. In order to catch these crooks, regulators from these various jurisdictions must cooperate. That takes time and resources � and plays into the hands of promoters who are operating at a far quicker pace.
Not a bullseye, but at least in the 8 ring for SLJB.