NewStream Energy Technologies Group Inc (NSGP)

[humblehawk]

I think some of it has been priced in already. It wasn't like the China news was "NEWS" @ .04.

JMO
Great article.....sounds like CCTC...imo

great article:

http://www.forbes.com/forbes/2010/0426/investing-pink-sheets-fraud-stock-scam-madoff-spot-pump-dump.html

Inquiring investors would have had a hard time uncovering the well-disguised role of the promoters or their backgrounds. Reynolds, for example, is a former stockbroker who's been banned from the industry and whose name did not appear in the early public documents of My Vintage Baby. Still, there were plenty of telltale signs that a pump-and-dump might be under way. Watch for these if you ever get excited about a fast-moving stock, especially one with a low share price.

Reverse Merger. There's nothing inherently wrong with a reverse merger, which involves a formerly private company gaining access to the stock market by allowing itself to be acquired by a firm whose shares already trade. However, this variety of reorganization happens to be a common first step in penny stock scams. It allows insiders to take a venture public without filing the usual registration statement with candid disclosures about assets, liabilities, insiders and risks.

My Vintage Baby was private until May 2007, when the promoters arranged for it to merge into, take over and give its name to something called Comprehensive Medical Diagnostics Group. As little more than a publicly listed shell, Comprehensive Medical had shares capable of being quoted and traded, even though it had last reported financial results in 2001.


Pink Sheets. Shares of the newly public My Vintage Baby were listed in the Pink Sheets, a thinly regulated public marketplace that contains 9,300 companies with, for the most part, unimpressive balance sheets. Some of these companies are tiny but honest; some are larger but possess more hot air than assets. Most Pink Sheet outfits are too small or have too few shareholders to be required to file financial statements with the SEC, a group that includes My Vintage Baby. But SEC filings are no guarantee of anything; over the years plenty of pump-and-dumps have involved reporting companies.

Pink Sheet companies are usually marked on financial Web sites with a "PNK" or the like next to the ticker.
In Pictures: 10 Ways To Spot A Pump-And-Dump Scam

Sketchy Financials. Before it started trading publicly, My Vintage Baby filed three pages of unaudited, bare-bones financials with the Pink Sheets that contained results for 2007's first quarter. The paucity of information was itself a red flag; the numbers were not reassuring. They showed a negative net worth and little cash. My Vintage Baby lost $173,000 on $429,000 in sales in the quarter. A potential investor
should have asked why, in five weeks starting that June, the shares enjoyed a 600% run-up that endowed the firm with a $225 million market capitalization.

Horn-Blowing. Immediately upon going public, My Vintage Baby became the subject of promotions via mail, e-mail and Internet sites touting it as a "strong buy" that "could make a fortune" for early investors. The company issued press release after press release announcing new deals and products.

Lots of legitimate outfits have busy p.r. departments. What should make you suspicious is self-promotion out of alignment with discernible financial results.

Dubious Connections. Many of the early press releases listed as the contact for My Vintage Baby the phone number of Cervelle Group, an "investor relations" firm now in Winter Haven, Fla. Internet research would have shown that the shares of a number of other companies promoted by Cervelle had risen and then crashed. Among them: Superior Oil & Gas ( SIOR.PK - news - people ) and Itronics ( ITRO.OB - news - people ), a fertilizer firm. Cervelle, which often was paid in shares of the outfits being flogged, did not respond to requests for comment. It is not a defendant in any of the SEC's three My Vintage Baby cases.

Trading Surge. According to the SEC, My Vintage Baby's promoters obtained 20 million of what became 77 million shares outstanding at prices ranging from a half-cent to 7 cents and traded among themselves and associates to create the appearance of investor interest. Share volume went from zero one day to 1.5 million the next in June 2007. Did no one among the marks find that odd? As the stated price climbed, volume topped 3.5 million shares on one day five weeks later, when, the feds say, the pump really turned into the dump.