Investor boards posts and posting

Good Morning all, It looks like the market is taking a beating today so I thought I would dedicate this post to one of our due diligence tools which is posting and posts on the various investor boards.

Somethings I want to explain to you about posts and posting are some of the various motives behind posting on the investor boards. Obviously one of the main reasons we post is to bring awareness to a particular stock. That is pretty much a given. I believe a good post creates awareness and includes information that can help you make your decision on whether to buy or sell the particular stock. For instance if I include a recent chart of a particular ticker in a post and also point out to you the highlights of that chart then that in my opinion is a good post that you can use in doing further due diligence on that ticker. My motive behind that post would be to give you some information that I myself would use in making a decision if I were going to trade that stock. A poster whos motive is to just pump a stock and create hype would of course think you are stupid and post something like "This stock is ready to move imo(in my opinion) 52 thousand times and clog up the board with this nonsense.

Predator promoters who just want to pump and dump a stock on a particular day will flood the posting boards with hundreds and hundreds of nonsensical posts just trying to get numbers for a day in order to make themselves look good.  I am and have always been of the belief that quality always trumps quantity.
I do not ever post the same hype ridden post over and over again just trying to get my post numbers up. I believe you are intelligent and will recognize an intelligent informative post and do not need to be hounded with posts in order to make your decision on whether to invest or not.

Another motive behind posting is posters generally get hired to do just that. Post and post and more posting in order to just plain and simple get paid. On average posters get paid $1 per post with a minimum of 50 to 100 posts per day per promotion. I am not knocking getting paid to post as I get hired all of the time to post. What I am knocking is the blatant disregard for your intelligence when posts are being posted. For this reason my posts are always laced with content you can use and is designed to make you a more informed investor.  So read all of those posts and find the posters who think along these lines and use that info to better make your decisions while doing as always your OWN due diligence in your investment decisions.   Until tomorrow..... Ride Hard or Stay Home

Educate yourself and become a better investor

I wanted to revisit some of the basic things I've written on in past postings and remind you of some of the important things we should never forget when investing. First and foremost and I cant say it enough, be really comfortable with losing all of your investment, as investing is a risk. I believe if we set our stop loss limits and stick to preset gain percentages in our minds though, the likely hood of losing everything on one play gets taken out right off the bat. Remember, I'd rather you give me a 30% gain on my investment 3 days a week rather than waiting for that all elusive triple digit gainer.

 The second point I want to make is unlike other promoters and Investment relations and marketing companies I do not think you are stupid. I think that lacking education is not stupidity it is just having less info which by the way is the purpose of my blog. What I want to achieve here is 2 things: First I want to educate you and Second I want to be able to help you see through all of the crap that's put out there in the investment world for what it really is just plain crapola.

If I put a ticker on my blog it is only and i mean ONLY because I have thoroughly done the due diligence on the company and have presented it to you in a way not to convince you to buy the stock, but to show you the investment opportunity available if you like what you see. I will also put in the possible set backs I see in the company as it is very easy to shine up a turd and leave out pertinent information in an effort to make the company look good. Only fully reporting SEC compliant companies will make my list. NO DOGS ALLOWED.

My new site http://stockpycks-com.blogspot.com/ is designed to help help companies that cant afford big awareness campaigns get the word out in an affordable manner, and my other site http://www.stockpycks.com is designed for you the investor to get information about the companies, learn about practices and protocols and most importantly as YOUR DUE DILIGENCE tool.

Now, many people have asked me why I will not charge for member access to that site and the answer is pretty simple. I am the same as you with just a little more information. I want you to have as much information as you can get without having to pay for it. Soon I will have free level 2 on it as well as a tweet tracker of all of the most tweeted stocks. And.... I wont fill it up with tons of ads. Sure I may need a few to cover maintenance stuff but I want it to be something that would attract me: an information rich site that I can use to research companies and connect with other like minded people interested learning and continuing to learn more about the world of investing.

Thats it for now, Ill have more tomorrow as I know Ive neglected this poor blog but have a renewed dedication to it and more importantly YOU

Wonder how Stock Promoter's measure their success?

Ever wonder how stock promoters measure their success?  It's measured by how much money was spent on the promotion.  They divide out the amount of shares sold in a given day by the amount they were paid.  It determines whether they can pat themselves on the back if they took your money away from you.  I have been writing about this subject lately on pump and dumps & gap and traps.  What's most pathetic is the promoter has approximately 15 minutes of fame to prove themselves at the opening of the market.  Did the stock gap at the open?  90% of the time it did.  Did you get trapped?  I hope not, I hope you are learning from my blog to not go there. Did the stock sustain it's PPS (price per share)?  Most do not.  The volume may continue all day, but watch time and sales.  Are they painting the ask price?  If you watch closely you will see little buys and sells come through.  This is when somebody is painting the price. Enticing buyers to buy.  More times than not, they will even do it the day before.

Sound to forward?  I won't sugarcoat anything.   Remember I am sugar free and the lesson's I can teach investors in making a profit and not losing is the most valuable asset I can have.  Am I perfect? No.  Do I make mistakes?  Yes.  I just want to pass information on to you in hopes you can learn as well.  I will be passing on also different tools on the internet that you can use for free.  Be careful when you sign up for sites saying they are the next best thing since the telephone and trap you once you are on the site by making you sign up first.  They only wanted your email address so they can send you their scam plays.

Until tomorrow, do your due diligence before the market opens and be prepared to make the best decisions you can make.  Hope all had a safe and Happy New Year.

Pathetic Promotion this week on LDPP

The pathetic forum post's I am seeing on LDPP is people patting themselves on the back. Feeding off each other because they knowingly took advantage of the Newbies, sounding like Tarzan and beating their chests.  This makes me sick.  Even if they didn't have anything to do with the play, they jump on the band wagon and say they did because they are thinking about their next play and how much they can make off who they think are Stupid people the next time. Claiming gains to prove they are the next big play is a huge joke.

The last post I read was Friday:

A bang?  A bullet does the most damage when they hit the target they are aiming for.  The faster something loses momentum, the more force it produces.  Get where I am going with this?  The damage was done when the primer was added to the bullet at the onset, hence front loading the stock.

I read a post that said this:

Obviously someone leaked the play for their own personal gain...

When so many promoters, which I found 12 so far, jump on a play, it does not work out so well.  Each and every one of them are in it for personal gains.

Take a look at the data where LDPP went from not trading and the front loading started:

These are things you need to discipline yourself into looking at before you invest.  This information was found reading forum boards and going to http://www.otcmarkets.com.  You spent hours earning you hard earned money.  Take the time to invest it well. 

The chart below is with a 50 moving day average.  Remember I said a couple weeks back that if the stock falls below the 50 M/A she's gone?  You can see by reading the times and sales that some gained but a lot are bag holders.  They didn't take the time to do their own due diligence and got caught up in the hype of the next best thing.  Keep EMOTIONS out of stock trading, period!

This is the 2 day chart of the play.  "Gapped and Trapped" at the get go and went flat.  A picture states a thousand words.

flat and closed -54%

Saw a big post this morning on the next best biggest most awesome trader tool ever.... Big surprise that it was from one of the worst predator pump and dump promoters and all that the site is designed for is to harvest your email so that they can sell you on a list to either another pump and dump promotion or to one of their sister sites that they like to hide in hoping you do not realize that the leopard has tried to change his spots again to trick you into trusting him. I have been on the site they are pushing and it is merely a collaboration of all the tools you already have available to you if you dig a little. Remember hard work yields fruit and you always get what you put into something. The promoters first sentence in his post touting his new site says, After all the HYPE here it is..... See??? They feed on hype. If you are not getting the big picture on promoters... stay tune, I will be watching, learning and posting.  Play it smart and until Monday do your due diligence, Happy New Year and see ya next year.

Who chased and got trapped in this P&D?

Here is a chart for a typical "pump & dump" "gap and trap" that was posted all over forums 12/29/11. 

It closed the day before at 0.0026, gapped to .04 (+1438%) and dropped in the first hour.  Yes she may have closed up 361% but who chased and who got trapped?  There was no news and has not had any since April, 2011. 

Her website is lacking in information big time and this is listed in her quarterly report

"No Active Market. Although the Company’s shares are listed on the Pink Sheets listing service, the Company believes that the public trading price may be an inaccurate representation of the value of the Company because there is little or no trading volume in the Company’s shares and no analysts or NASD market makers actively follow the Company."

http://www.londonpacificgroup.com/

Does that put up a red flag?  Yes she has assets and revs but why has this not been actively trading?

Here is another red flag for me:  company profile reads; London Pacific & Partners, Inc. is an international private equity and corporate finance investor and advisor focused on the transformation of undervalued and growth companies in the healthcare, hospitality, and financial services sectors.

I stay away from companies that have words like "focused" and companies that target undervalued companies.  Makes me think they are looking for shell's to hide things in.  

I also Google'd the CEO:  His experience is all over the place and does not even state LDPP as his primary business.

Kenneth I. Denos
Director and Secretary

EQS
Equus Total Return, Inc.
Houston , TX
Sector: FINANCIAL / Diversified Investments
Officer since January 2005

43 Years Old
Kenneth I. Denos, Deputy Executive Chairman of London Pacific & Partners, Inc. since August 2009. President of the Fund from December 2007 to June 2009; CEO of the Fund from August 2007 to June 2009; Executive Vice President and Secretary of the Fund from June 2005 until August 2007; Executive Vice President of Equus Capital Administration Company, Inc. from June 2005 to May 2008; CEO and President of Equus Capital Administration Company, Inc. from May 2008 to June 2009; Executive Vice President of Moore Clayton Capital Advisors, Inc from June 2005 to May 2008; CEO and President of Moore Clayton Capital Advisors, Inc from May 2008 to June 2009; Mr. Denos has served as CEO of MCC Global NV since May 2006 and as a director and Executive Vice President of Moore, Clayton & Co., Inc. since January 2001. From November 2005 until May 2006, Mr. Denos served as the Non-Executive Chairman of Ridgecrest Healthcare Group, Inc. From February 2005 to February 2006, he served as a director and General Counsel of MCC Energy plc (now Tersus Energy plc). From April 1999 until August 2007, he has also served as Chairman and CEO of SportsNuts, Inc. (sports marketing company). Since March 2007, Mr. Denos has served as a non-executive director of Secure Netwerks, Inc., an information technology hardware and software reseller. Since January 2000, he has served as President of Kenneth I. Denos, P.C. Since March 2009 he has served as CEO and Chairman of Acadia Group, Inc.
http://people.forbes.com/profile/kenneth-i-denos/70767

Chief Operating Officer, General Counsel, and Director
MCC Global NV
Executive Vice President, General Counsel, Secretary, and Director
Moore, Clayton & Co., Investment Arm
Former General Counsel
Tersus Energy PLC
Deputy Executive Chairman
London Pacific & Partners, Inc.
Director
HealthSPAC, LLC
1999-2007
Former Chief Executive Officer, Principal Financial Officer, Principal Accounting Officer, General Counsel, Secretary and Director
FuelStream, Inc.
2001-N/A
Former Secretary and Director
Synerteck Inc.
2004-2005
General Counsel
Healthcare Enterprise Group
2004-Present
Director
Secure Netwerks, Inc.
2008-Present
Secretary, Director, Director of MCCA and Director of Moore Clayton & Co Inc
Equus Total Return, Inc.
2011-Present
Director
Scorpex, Inc.

http://investing.businessweek.com

I personally want a CEO concentrating on the company I am investing in.

Too many red flags from the get go, too many red flags for me to put my hard earned money here.  I will be watching her today and see where she goes.  My money goes on the big flush! Ill let you know tomorrow if this turd floated or if it just went down the drain with the other turds

Pump and dump promoters

As much as I hate to harp on one topic, pump and dump promoters really anger me.They take advantage of unsuspecting investors and leave them holding the bag. The main indicators are in the 10Q, if the company actually has one, and in the average volume as I spoke about in yesterdays blog post. Most stock promotions are paid for by third parties that hold a large position in a stock. Really all these third parties are looking for is volume to dump their stock and the promoters will go to any length to dress up what I like to call a turd stock. Promoters will flood the investor boards with promises of good news hoping you will buy into the hype,and then when the news comes out it is merely a bunch of fluff or rehashed news about plans the company has IF it gets financing. Due diligence is extremely important in uncovering these frauds. Dont get caught holding their bag. If you must buy into the hype then wait till after the initial push and watch the stock come back down then see if you can ride it up. Dont make other people rich!!! Most pump and dump stocks hit their high 15 minutes after the open and never recover from the pullback. Watch a few and see for yourself. Until tomorrow......

Pump and Dump or Stock Promotion?

One thing I want to say about pump and dumps and promotions is be VERY careful. It is very easy to get wrapped up in the hype of a promotion and then YOU are left holding the bag. I like to use http://newsletter.hotstocked.com/stocks to find out when a stock has been promoted and who has promoted it and what was the performance of the promotion. A promotion becomes a pump and dump when the promoter pumps it while others with a position sell off their stake. This is where my due diligence becomes my best tool. Questions I ask myself are, "How long was this stock promoted?, "what was the performance of the stock during the promotion?" " did the stock hold any gains or did it have its 15 minutes of fame before bottoming out again?" Using a promotion can be a tool if I am trying to get out of a position but be very careful and dont hold too long. I advise against using a promotion to get into a position, as the stocks being promoted tend to be very unstable and uncertain and it is easy to get wrapped up in the emotions of making a quick buck. Knowing your due diligence of a company can help you to decipher whether a newsletter or alert you get on a stock is good news or just polishing a turd to get you to buy in. Dont get caught holding the bag!! Do your homework!! Third party promotions are often designed to get them out and you in. Tomorrow we will look at some stock charts so we can actually see past performances on stocks and how they can help us get in on a bottom and out with our profits.

Whos Who

Who is running a company is as important to me as what the price per share (PPS) is. For instance lets say Mal the CEO of a company I am looking at has run 5 other companies that have never had any revenues or products,Ill safely assume that he hasnt turned a new leaf and his current company is also a piece of garbage shell that is probably a dilution trap for me . I say buyer beware. I want the companies I trade and invest in to have executives that have run real companies and had results. The tool I use to find out where he or she has been is Google. Once I know who the executive is I simply google his or her name and see what comes up. Usually I am looking for a profile on Forbes or Businessweek as they have been my most reliable resources. In my opinion, CEO's tend to stick with the same types of companies. Remember, ANYONE can be a CEO on paper its as simple as starting a corporation and putting your name as CEO. So dig on those CEO's and dont forget the company directors and CFO's and COO's etc etc. You will be amazed at what you can uncover on them. Birds of feather and all that. Tomorrow I will focus on stock promotions and promoters and how to tell whether a promotion is legitimate or just a pump and dump.

So you want to invest.......

Im gonna focus this week on the basics of investing money. This opens up the mother of all cans of worms. In the old days,you picked a stock, saw the recommendations of either buy,sell or hold and then followed that in your purchase decisions. Then came Sept 2008 and all hell broke loose. The broken system was revealed for what it really was....GARBAGE. I believe in Warren Buffets belief of find a company you like,preferably AMERICAN,do your due diligence and buy with only money you can afford to lose. What I mean by that is dont invest the rent or grocery money hoping to make it grow. 7 out of 10 stock plays lose. What I try to do is limit my losses to an acceptable loss percentage (20% in my book), and set a realistic gain percentage (30%) and stick to them. In the day of pump and dump hype plays it is very easy to get wrapped up in the hype and start dreaming of huge gains. Ill take 30% on my money every day and dance a jig all the way to the bank. As I write this week I will highlight my processes of finding stocks to invest in and how I determine my entry and exit prices as well as what times I buy and sell. Remember.... If it sounds too good to be true it for sure is.....