Article on paid Pumper Letters Capital Research
Capital Research Secretive About Payment Source
Jul 2, 2003 (financialwire.net via COMTEX) -- (FinancialWire) FTS Wireless, Inc. (OTCBB: FLIP), SLS International, Inc. (OTCBB: SITI), and AngelCiti Entertainment, Inc. (OTCBB: AGLC) were among numerous companies featured in promotional e-mails recently, according to The Promotion Report Newsletter at www.penny-stock-promotions.com and the Investrend “Investor Resource Center at www.investrendinformation.com
FTS Wireless was profiled by Capital Research Group, Inc., which disclosed that it "has received three hundred thousand shares of FLIP from a third party and has sold approximately zero FLIP shares to date."
Enforcement officials at the Securities and Exchange Commission have told FinancialWire it is not enough for a company to disclose payments but that the disclosure must include the precise source of the payment, and if by a third party, the relationship of the third party to the issuer, if any.
Other companies profiled recently Environmental Remediation Holding Corp. (OTCBB: ERHC), Ofek Capital Corp. (OTC: OFCC), Viper Networks, Inc. (OTC: VPER), CalbaTech, Inc. (OTCBB: CLBE), Ibises International (OTC: IBSN) and Epic Financial Corporation (OTCBB: EPFL).
Promotional companies often erroneously use terms such as “coverage," “research" and “analyst" to describe their profiles.
The FIRST Research Consortium at www.investrend.com/articles/secondlevel.asp?level=266 has issued standards that require such reports to describe the credentials of their “analysts" and “researchers," including accreditation, if any, by the Association for Investment Management and Research, whose Chartered Financial Analyst credentials are the world's standard for professional research, and states that the use of terms such as “coverage" or “research", as well as “recommendations" and “targets" in the absence of links to a full report by a credential professional may be fraudulent misrepresentation.
The Promotion Report Newsletter is a subscriber-driven service and accepts no compensation from any companies. The companies featured in the report are not necessarily directly involved with any stock promotion activity. It is not at all uncommon for large shareholders or third parties to promote a company's stock without the company's knowledge or permission. No correlation is implied or should be inferred between any entity described in the report and volume or price activity on any stock.
The U.S. Securities and Exchange Commission cautions investors about stock promotions on the Internet: "A company's web site may feature a glowing press release about its financial health or some new product or innovation. Newsletters that purport to offer unbiased recommendations may suddenly tout the company as the latest 'hot' stock.
"Unwitting investors then purchase the stock in droves, creating high demand and pumping up the price. But when the fraudsters behind the scheme sell their shares at the peak and stop hyping the stock, the price plummets, and investors lose their money. Fraudsters frequently use this ploy with small, thinly traded companies because it's easier to manipulate a stock when there's little or no information available about the company. To steer clear of potential scams, always investigate before you invest!" the SEC concludes.
Individuals may report perceived violations resulting in perceived manipulation of price or volume at
www.sec.gov/complaint/cf942sec9570.htm and at the Investrend Investor Resource Center.
Complete information about any company enrolled in an Investrend shareholder empowerment platform, including disclosures and disclaimers, is available at the company's InvestorPower page at www.investrend.com/company/list.asp?sPathParam=yes
Pennies not a zero sum game as much as some zero game.
AI
