That is the chance you take playing the Pinks/OTC markets. Every pumped stock is basically a scam.
Read this from last nights Pumps and Dumps dot com article.
Spam email promoter, Stock Castle, and its varying partner newsletters with names like Wall St. Penny Advisors, Hottest Penny Stocks, Obscure Stocks and the more recently formed, Penny Stock Profitz, have been promoting Nevada Gold Corp (NVGC) for a couple of weeks now. Up until Friday shares were climbing steadily on heavy volume, in about as controlled a dumping as one will see. We all know where this one will end up, which is in the tank, along with past major schemes from these touts, like WILD, USGT, BRND, IDOI, MSTG and so many more.
Spam email promoter, Stock Castle, and its varying partner newsletters with names like Wall St. Penny Advisors, Hottest Penny Stocks, Obscure Stocks and the more recently formed, Penny Stock Profitz, have been promoting Nevada Gold Corp (NVGC) for a couple of weeks now. Up until Friday shares were climbing steadily on heavy volume, in about as controlled a dumping as one will see. We all know where this one will end up, which is in the tank, along with past major schemes from these touts, like WILD, USGT, BRND, IDOI, MSTG and so many more.
As with all of these long term promotions which are headed up by a single group of newsletters, from time to time, the run up will be interrupted by a massive sell-off, instigated by the promoters and their clients themselves. The sell-off, which is usually followed by screaming accusations of "damn shorts" in "crying wolf" style, is in order to keep interest in the targeted stock high. For one thing, those who are already holding the stock are less encouraged to sell, as they might have been inclined in order to lock in profits had the shares would have been allowed to continue climbing unabated. For another thing, new buyers might be less encouraged to purchase stock, if they feel that the share price has run away from them. A retraced share price offers new hope to a new generation of dupes.
Stock Castle has perpetrated this trading pattern successfully over and over again. Best Damn Penny Stocks is another long term promoter that invokes this style. The recently defunct, Awesome Penny Stocks was an expert at it.
As if taking the public's naivety for granted in order to reap ill-gotten gains wasn't bad enough, the newsletters now would like you to believe that they expected Friday's sell-off all along.
We take particular note of the opening comment, "The expected correction has finally happened and it is presenting a great buying opportunity!" Really? "Expected correction"??? Well somebody forgot to tell us that it was expected. And if the sell off resulted in a great buying opportunity, then didn't we have a great selling opportunity ahead of the dump? Nobody told us about that either.
Actually, the email that had been delivered to subscribers' Inboxes just 5 hours earlier, said everything to discourage us from believing that a correction was expected.
In fact, the earlier email starts out with the question, "Is $2 Next For NVGC?" There was no questioned posed along the lines of, "Is a correction next for NVGC?"
Near Friday's close, NVGC put out a press release disavowing the promotion campaign on its stock and claiming to have nothing to do with it. That release was probably preceded by a phone call from the SEC, who has begun to take actions against promotions making outlandish predictions such as this one does. We're going to take the position that the company and it's officers and directors are lying in that press release, and state unequivocally that not only did they know about the Pump & Dump campaign in advance, but they had a hand in funding the campaign, likely with the aid of IR service provider, Small Cap Voice, who is admittedly being paid by the company, and is disseminating emails concurrently with Stock Castle.
