RCMW Group Inc (fka RCMW)

[Jackroch]

What is a pump and dump scheme?

http://www.sec.gov/answers/pumpdump.htm

"Pump and dump" schemes, also known as "hype and dump manipulation," involve the touting of a company's stock (typically microcap companies) through false and misleading statements to the marketplace. After pumping the stock, fraudsters make huge profits by selling their cheap stock into the market.

I think it is important to differentiate between a "pump and dump scheme" and what is a Press Release campaign.

A company can issue a Press Release any time. A company can hire analysts, PR men, Investor Relations people. A company can promote itself. No company is going to survive without those kind of activities.

The SEC definition above includes the statement "through false and misleading statements to the marketplace." And this is the key - false and misleading.

The Press Releases came from the company - there is no dispute about that. Companies issue PRs all the time. When a company has news, good bad or indifferent it lets shareholders know through press releases and 8K filings.

The paid promotions were funded by some entity called "Hefin International Inc." Now THAT I am still investigating. Could have been ANY individual shareholder. Could have been financiers. Could have been shorters trying to make a buck the way they like to do it. Could have been competitors trying to make the company look like it was a pump and dump scheme, scare off investors and stop the company.

Could have been ANYONE including the "paid" promo company themselves. I have Sirius/XM satelite radio in my car. For about 6 months I heard ads night and day about a website called pennystockchaser.com. Here's what they were up to:
http://stockreads.com/Stock-Newsletter.aspx?id=28164

Part of logic is being able to look at the individual pieces of data and tell them apart. That the company issued the PRs does NOT necessarily = the company funded the paid promos. I am not saying they did or they didn't. I don't know and apparently neither does anyone else.

Next part of the definition of pump and dump scheme:

"After pumping the stock, fraudsters make huge profits by selling their cheap stock into the market."

Means there has to be tangible evidence of fraud and the actual selling of stock for there to be a "pump and dump."

CPOW is not a pump & dump scheme because some posters on a message board or some professional short sellers say it is. The definition above has to be the case to call a company a pump and dump scheme.