Compliments of www.pennystockresearch.com June 29th article
This week we’re exposing these three popular Pump & Dumps: Andes Gold (AGCZ), Green Energy Renewable Solutions (EWRL), and Great Wall Builders (GWBU).
That said, welcome to Pump and Dump Friday, where every week we identify a few of the potentially “bogus” promotions going on in penny stocks today.
If you don’t know how these schemes work, be sure to check out this free report that exposes the whole thing.
Without further ado, here are today’s “disasters waiting to happen”:
Andes Gold (AGCZ)
It seems some stocks are the target of pump and dump schemes time and time again. And Andes Gold is on its fourth go-round this year alone!
We warned you about two of them in the past… once in March, and then again in April. This time around, it’s Major Penny Stock and Moving Pennies doing the pumping. They were paid $4,000 and $5,000 respectively.
Interestingly, the pumping seems to be losing its effectiveness. Shares of AGCZ have continued to slide with each pumping effort since it ran up in February. Take a look at the stock price after the pumping started up again in March…
As you can see, Andes Gold is trading lower and lower each month since peaking at the end of March.
While the paid pumping going on in AGCZ is a big enough red flag to avoid buying this stock, there’s even more you need to know…
For starters, Andes Gold no longer files their financial reports with the SEC. In 2005, AGCZ terminated the registration of their stock. This means they don’t need to file timely or structured financial reports.
It takes away a layer of protection for investors.
What’s more, the company issued over 200 million shares in the first quarter of 2012. They issued 98.6 million from debt conversion and 111 million for services. Now get this… Andes Gold has over 1 billion shares outstanding as of March 2012!
Now, AGCZ did turn a profit for the first quarter, but they had to issue shares and still burned through cash in the process.
For the smart investor, I’d recommend you take a pass on shares of Andes Gold.
