Wednesday, March 09, 2011 8:23:07 PM
(KNKT) - another Capital Financial Media / Eric Dickson promotional disaster
Millions of dollars were spent for promotions on Kunekt Inc over the past few weeks driving the price up from just over $1.00/share to close to $3.00/share at its peak on February 28, 2011.
But just like some other recent stocks that got pumped using millions of dollars in promotions paid to Capital Financial Media this one also saw a devastating price decline.
Eric Dickson was involved in doing a mailer/newsletter for KNKT very recently. If you read the fine print at the bottom, you will see that a private company, Next Generation Technology International Ltd., paid Breakaway Stocks’ parent company, Capital Financial Media, $2 million “to provide financial awareness” for Kunekt. This is a huge promotional budget, the biggest I have ever seen. As usual, we are not told who is behind the sponsoring company.
How has KNKT done since the promotion? It tanked. Down another 25% today.
Back in December HHWW was pumped through a highly paid promotional campaign. Eric Dickson was involved in putting out a mailer/newsletter for HHWW. The disclaimer at the bottom of Dickson's newsletter reveals that it is part of a massive promotional campaign managed by Capital Financial Media, which routinely pumps penny stocks that have the shelf life of a banana.
In this case, a private company called Lux Media Corp. paid CFM a whopping $2.75 million, of which $3,000 was paid to Dickson's newsletter. This is the most expensive penny stock promotional campaign I have ever encountered.
Who owns Lux Media was not disclosed, but it may well be somebody close to the insiders. Certainly, the company has not taken any steps to repudiate these outlandish claims.
How did HHWW fair after the promotion? It tanked
David Baines did an article about each company (HHWW and KNKT) and the highly paid promotions for each:
HHWW:
http://www.vancouversun.com/entertainment/movie-guide/Investors+tattooed+clothing+company+stock+play/4079246/story.html
KNKT:
http://communities.canada.com/vancouversun/blogs/howestreetfiles/archive/2011/03/03/new-securities-rules-have-failed-to-eradicate-otc-monkey-business.aspx
Capital Financial Media (Delray Beach, FL) paid for a mailer promo campaign with Eric Dickson (S. Florida) last December (2010) on reverse-merger issuer FCPG (Chinese one). It hasn't done very well since that mailer pump.
Capital Financial Media and Eric Dickson have quickly made a name for themselves and not a good one. The BCSC has taken notice and quickly jumped on KNKT suspending the stock after the high volume the highly paid promotions brought in.
http://www.bcsc.bc.ca/comdoc.nsf/allbyunid/d402f564da808fc78825784600056d28?opendocument
Capital Financial Media was first brought to light for their questionable involvement in promotion shady stocks back in 2003 by Carol Remond (formerly of Dow Jones) who did a write up about SHEP Technologies Inc. (STLOF).
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=19081528
According to a disclaimer on The Intrepid Investor, the SHEP content "appears as paid advertising, subsidized by SHEP and a 3rd party group to provide public awareness of SHEP." The disclaimer also says "SHEP's management have approved and signed off as 'approved for public dissemination' all statements made herein regarding SHEP's history, technology and current as well as prospective business operations." Brian Sodi, named in corporate filings as manager of Capital Financial Media LLC, The Intrepid Investor's publisher, said in an email Wednesday that each and every page of advertising material was approved for public dissemination by SHEP's president.
Behind 'The Intrepid' Masthead
The Intrepid Investor disclaimer also indicates that Capital Financial Media managed a total production budget of $898,500 for this "current and past print advertising efforts and retained, over and above the cost of production, any amounts that remain as compensation as a fee for production services.
I am betting Capital Financial Media and Eric Dickson will have one or two more mailer p&d clients in 2011 and I hope the SEC is paying attention.
Millions of dollars were spent for promotions on Kunekt Inc over the past few weeks driving the price up from just over $1.00/share to close to $3.00/share at its peak on February 28, 2011.
But just like some other recent stocks that got pumped using millions of dollars in promotions paid to Capital Financial Media this one also saw a devastating price decline.
Eric Dickson was involved in doing a mailer/newsletter for KNKT very recently. If you read the fine print at the bottom, you will see that a private company, Next Generation Technology International Ltd., paid Breakaway Stocks’ parent company, Capital Financial Media, $2 million “to provide financial awareness” for Kunekt. This is a huge promotional budget, the biggest I have ever seen. As usual, we are not told who is behind the sponsoring company.
How has KNKT done since the promotion? It tanked. Down another 25% today.
Back in December HHWW was pumped through a highly paid promotional campaign. Eric Dickson was involved in putting out a mailer/newsletter for HHWW. The disclaimer at the bottom of Dickson's newsletter reveals that it is part of a massive promotional campaign managed by Capital Financial Media, which routinely pumps penny stocks that have the shelf life of a banana.
In this case, a private company called Lux Media Corp. paid CFM a whopping $2.75 million, of which $3,000 was paid to Dickson's newsletter. This is the most expensive penny stock promotional campaign I have ever encountered.
Who owns Lux Media was not disclosed, but it may well be somebody close to the insiders. Certainly, the company has not taken any steps to repudiate these outlandish claims.
How did HHWW fair after the promotion? It tanked
David Baines did an article about each company (HHWW and KNKT) and the highly paid promotions for each:
HHWW:
http://www.vancouversun.com/entertainment/movie-guide/Investors+tattooed+clothing+company+stock+play/4079246/story.html
KNKT:
http://communities.canada.com/vancouversun/blogs/howestreetfiles/archive/2011/03/03/new-securities-rules-have-failed-to-eradicate-otc-monkey-business.aspx
Capital Financial Media (Delray Beach, FL) paid for a mailer promo campaign with Eric Dickson (S. Florida) last December (2010) on reverse-merger issuer FCPG (Chinese one). It hasn't done very well since that mailer pump.
Capital Financial Media and Eric Dickson have quickly made a name for themselves and not a good one. The BCSC has taken notice and quickly jumped on KNKT suspending the stock after the high volume the highly paid promotions brought in.
http://www.bcsc.bc.ca/comdoc.nsf/allbyunid/d402f564da808fc78825784600056d28?opendocument
Capital Financial Media was first brought to light for their questionable involvement in promotion shady stocks back in 2003 by Carol Remond (formerly of Dow Jones) who did a write up about SHEP Technologies Inc. (STLOF).
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=19081528
According to a disclaimer on The Intrepid Investor, the SHEP content "appears as paid advertising, subsidized by SHEP and a 3rd party group to provide public awareness of SHEP." The disclaimer also says "SHEP's management have approved and signed off as 'approved for public dissemination' all statements made herein regarding SHEP's history, technology and current as well as prospective business operations." Brian Sodi, named in corporate filings as manager of Capital Financial Media LLC, The Intrepid Investor's publisher, said in an email Wednesday that each and every page of advertising material was approved for public dissemination by SHEP's president.
Behind 'The Intrepid' Masthead
The Intrepid Investor disclaimer also indicates that Capital Financial Media managed a total production budget of $898,500 for this "current and past print advertising efforts and retained, over and above the cost of production, any amounts that remain as compensation as a fee for production services.
I am betting Capital Financial Media and Eric Dickson will have one or two more mailer p&d clients in 2011 and I hope the SEC is paying attention.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
