Dump The Pump

[pitboss22]

BEWARE!!!! PAID PUMPERS AT WORK!

Imcat on the Mining Company Research Board suggested I post this over here....

The flurry of recent RRHI "news" was the work of paid pumpers. At least 3 companies have been paid to hype RRHI via the internet, email, facebook and twitter.

GreatStockAlerts was paid $5000 for its part in the campaign (email, twitter, facebook).....

Compensation Disclosure

"GreatStockAlerts.com, provides readers with information regarding
publicly traded companies that have retained GreatStockAlerts.com to
provide advertising, news and public relations. GreatStockAlerts.com
receives compensation from the companies in the form of cash and/or
securities in the companies. Compensation in the form of securities in
such companies may be viewed as a potential conflict of interest. It is
the practice of GreatStockAlerts.com to sell all securities received as
compensation upon the expiration of the applicable holding period set
forth in Rule 144 under the Securities Act of 1933 (“Rule 144?),
notwithstanding the fact that GreatStockAlerts.com may be advertising or
distributing materials on such securities and their issuers at the time
of the sale of such securities. If GSA is compensated for a particular
article or newsletter the compensation will be mentioned in the
disclaimer under the newsletter and or article. GreatStockAlerts.com has
been compensated five thousand for this email and other marketing
services."


InvestorIdeas was paid $1000 for an email campaign.....

"Disclosure: Investorideas.com was paid one thousand for news publishing and distribution through its newswire and partner sites in addition to email."


Additionally, BullQuake Marketing was paid at least $5000 and perhaps $15,000 or more for its part. Tucked away in its disclosure for each of three emails is this.....

"BullQuake has been compensated five thousand dollars by Raptor Resources Holdings for distribution of this email and other marketing services."


Is it over??? Probably not.

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Some excuse these paid promotions as "just marketing"

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_R/threadview?m=tm&bn=48143&tid=32842&mid=32843&tof=4&frt=2


Are they really "just marketing"?

Penny stock pump and dumps are on the rise. You may have seen them in your e-mail, a free penny stock newsletter, or chat room - the next "hot" penny stocks that are going to make everyone rich.

George Samragdis, a spokesman for the Financial Industry Regulatory Authority, or FINRA, which polices U.S. brokerage firms, states that, "Information technology allows con artists to reach victims more easily." Using tactics such as false urgency, *****fake credentials, and unrealistic experience*****, they cast dubious penny stocks in a much too positive light, which encourages unsuspecting investors to buy shares.

Penny stocks being used for pump and dumps are chosen because they are almost worthless to begin with. It is easy to manipulate the prices of their shares by misrepresenting that penny stocks' prospects. The more they lie to you, the more unsuspecting investors buy in, and the more money these penny stock pump and dump artists in make off of worthless penny stocks.

According to the S.E.C., a pump and dump generally starts with a promoter purchasing a huge amount of shares in some penny stock on it's last legs, for a very low price (RRHI has 990 million shares authorized, Mabwe Minerals will start with 500 million).

Then they will pepper the Internet with e-mails, and free newsletters about the penny stock in question. As this generates more buying from unsuspecting investors, those penny stocks begin to climb. Once the penny stock pump and dump artists have enough profits, and they move on to their next worthless penny stock. At that point without ongoing efforts of the promoter, which could be a matter of days or months later, the penny stock sees it's shares collapse, taking all investors with it.

In many cases, what looks like a legitimate penny stock report is actually a paid advertisement, which can be seen in their lengthy, fine-print disclaimers.

When asked how these penny stock promoters get away with it, one analyst and author explains that the S.E.C. requirements about penny stock promotion aren't strict enough, nor are they appropriately policed. He asserts that these promoters should remember that, "just because they aren't getting stopped doesn't mean that it's right."

"Some people forget their ethics and try to ride along with the penny stock pump. They need to remember that every dollar they made riding along with the penny stock promotion is a dollar taken out of another person's pocket - usually a naive but trusting penny stock investor, or an old lady who is desperate in this economy."