News Focus
News Focus
Followers 47
Posts 2530
Boards Moderated 0
Alias Born 12/16/2010

Re: Eagle1969 post# 1810

Monday, 01/31/2011 9:29:14 AM

Monday, January 31, 2011 9:29:14 AM

Post# of 6560
Which brings the question again WHO is behind the paid pump messages that went out around the end of Dec, early January.

To be clear, as far as I know, paying for promos is not an illegal activity. If someone has something on that please let us know.

The problem with paid promos is most assume any company worth its salt wouldn't have to pay for promos - it would stand on its own merits. I would tend to be in that camp myself.

Some ASSUME it was the company or insiders that paid for the promos.

Maybe they did and maybe they are didn't.

Honestly I don't know or I would share that data with this board.

Like some of the other things that have been brought up here, I am not going to assume the worst automatically about CPOW or its leadership.

All we know is that the promos were paid for by "Hefin International Inc." per the microscopically small fine print on the bottom of these promos.

If anyone can find out who Hefin International Inc. is I will buy them dinner (actually it will probably have to be a gift certificate for dinner). Because I cannot find it. Most likely a Front Company.

When you Google that, you find about a half dozen penny stock websites alerted on CPOW, for a fee. You also find a figure of $100,000 paid for the promos. If these penny stock promo sites are all from one SPAM factory (possible), that would be a total of $100,000 for the lot. If they are seperate companies its HUNDREDS OF THOUSANDS paid for the promos to different companies.

Again, WHO could it be? Cui bono (who benefits)?

Other than "the company", these are the players. Maybe I missed one or two as well:

a) Financiers that loaned the company money are possibly trying to recoup their investment. If share price goes up, perhaps some non-restricted shares get sold by the company and used to pay off loans. Or financiers themselves own stock and have since it was pennies.

b) Professional shorters have a lot to gain. Any time a company is pumped and dumped and they make money for their subscribers, they look good and can bring in more paid subscriptions because of an increasing resume of (what they call) success.

c) Could be this Troy Metz fellow if he got or had shares. Serves two purposes - he makes money on shares and can help discredit the company he is no longer part of (spite?)

d) Some investor with deep pockets that is not otherwise intimately connected with the company could have decided they wanted to make some money and paid for the promos.

e) Competition. I brought up earlier the possibility that a big conglomerate seeing potential competition in CPOW might have paid for promos through a front group to hype the company, then put shorters on the case to discredit the company to stop any progress on the Chinese deal. This is just as feasible as any other theory.

f) Penny Stock Newsletters benefit if CPOW actually does make it. It would a success story for them and add to their OWN resume, drawing in subscriptions/more paid promos from other companies ("just look what we did for CPOW folks - your company could be next" and "We alerted CPOW at (blah) and it went all the way up to (blah)!!! Give us your email address and we will make all of you rich!") Plus they got paid for the hype. Friend or relative of penny stock front group who themselves would be smart enough to buy shares and get in and out on the hype?

AS A NOTE I AM SENSING THE PAID PROMO DAYS ARE OVER. I HAVEN'T SEEN ONE ACCOMPANY THE LATEST PR. WHOEVER WAS BEHIND THIS HAS PROBABLY GOTTEN WHATEVER THEY WANTED OUT OF IT.

If this is the case, what we now have is a game between longer term investors and shorters - in other words what would generally be considered "the free market".

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today