Interesting !!!!!
PUMPs & dumpS
Red Flagging DANGERS In The Penny Market
Another S-AURI Pump and Dump Story
August 4, 2011: We love today's upteenth promotional email from tout Eastwind Research who is trying desperately to pump Auri, Inc. (AURI):
"A few weeks ago, we brought you AURI. We love AURI and now we are bringing you back in for what we think is about to be a MAJOR RUN"
A few weeks ago? Really? How about thirteen days ago. Back then Eastwind's dare was:
"Get into AURI ...now before the action begins"
and
"So, in the end, you have a choice...miss AURI at right around 65 cents or...
You can bet against us...bet against what The Wall Street Journal and USA Today...
bet against Forbes Magazine, The Washington Post, PARADE and The Wall Street Reporter...bet against AURI Inc."
One of the sure signs of a pump and dump is when you are told, "You must get in now".
Much to the chagrin of the insiders and the touts, the public wisely decided to bet against the dare. Why? Because Eastwind and the other touts laid it on too thick. Few people are going to be stupid enough to believe that all these world class periodicals are going to tout a penny stock. They didn't. Just because Parade magazine put AURI shoes on their cover (and we're not sure they weren't paid to do so), doesn't mean that they endorse AURI's stock or even believe that AURI will survive. It just means that AURI makes nice shoes. Well we believe that! The shoes are great! It's the stock that sucks! Koo Koo Roo made great chicken but couldn't make any money. Saab made great cars but no money. And so on....
The problem is that AURI is an over hyped, over priced, underfunded, under performing company. So what do the touts do? They arbitrarily compare AURI to Apple, Inc. How much credibility can be given to a tout stupid enough to mention these two companies in the same breath?
The street has stayed away from AURI in droves. In the last two weeks, at least 16 emails from at least 4 different touts have filled the inboxes of emails addresses everywhere. And all the volume the stock could muster in the period was an anemic 2.9 million shares. And guess what! The stock is still 65 cents. It's been stuck in a range between 60 and 70 cents and we think it is about to get dumped big time. Why? Because the shareholders will soon get spooked when they see that pump after pump has failed to get the share price up. And then the insiders are likely to lose patience and look to cash in. They are spending a lot of money on pumping the stock and not getting enough return. So as is usually the case, they'll discount the stock to extract their funds. "Don't want it at 60 cents? Ok, how about 40?" We've seen it time and time again.
Let's look at a couple of the outrageous claims by the touts. The favorite boast refers to Forbes magazine's highlighting of AURI as a "most promising company". That was two years ago. Two years ago, Nokia had 40% of the world's smart phone market. This year they're unlikely to take 20% and are expect to soon disappear. Two years ago is a long time ago in the business world. And AURI has not lived up to its hype as a most-promising company. In fact, that Forbes article of 2009 is trumped, albeit unintentionally, by a later Forbes article called, "10 Ways To Spot A Pump and Dump Scam". Let's see how many of Forbes 10 tests AURI meets. Now remember, these are Forbes' tests and since AURI insists on pushing Forbes two year old endorsement, we should certainly consider Forbes one year old advisory.
