Another Lousy Promoted Stock

Time for the promoted penny stock scoreboard:

TickerDate of ArticlePrice @ ArticlePrice @ 6/3/13DeclineAnnualizedSplits
GTXO

5/27/2008

2.45

0.013

-99.5%

-64.7%

BONZ

10/22/2009

0.35

0.003

-99.1%

-72.7%

BONU

10/22/2009

0.89

0.012

-98.7%

-70.0%

UTOG

3/30/2011

1.55

0.005

-99.7%

-92.8%

OBJE

4/29/2011

116.00

0.630

-99.5%

-91.7%

1:40

LSTG

10/5/2011

1.12

0.033

-97.1%

-88.1%

AERN

10/5/2011

0.0770

0.0002

-99.7%

-97.2%

IRYS

3/15/2012

0.261

0.003

-98.9%

-97.4%

NVMN

3/22/2012

1.47

0.090

-93.9%

-90.3%

STVF

3/28/2012

3.24

0.380

-88.3%

-83.7%

CRCL

5/1/2012

2.22

0.072

-96.8%

-95.7%

ORYN

5/30/2012

0.93

0.150

-83.9%

-83.6%

BRFH

5/30/2012

1.16

0.300

-74.1%

-73.8%

LUXR

6/12/2012

1.59

0.023

-98.6%

-98.7%

IMSC

7/9/2012

1.5

0.990

-34.0%

-37.0%

DIDG

7/18/2012

0.65

0.073

-88.8%

-91.8%

GRPH

11/30/2012

0.8715

0.200

-77.0%

-94.5%

IMNG

12/4/2012

0.76

0.195

-74.3%

-93.6%

ECAU

1/24/2013

1.42

0.440

-69.0%

-96.3%

6/3/2013

Median

-96.8%

-91.7%

Tonight’s loser-in-waiting is Dephasium Corp [DPHS], which surged to a high of 59 cents today, probably off of the promotion of the stock, and the completion of an acquisition.  Here are my bullet points on why this company will fail:

  • No earnings
  • No revenues
  • Negative tangible book value
  • Acquires an asset of dubious value.
  • Formerly known as Expertelligence, Inc, Pay Mobile, Inc, & Allied Ventures Holding Corp.  What do you want to be when you grow up?  Sorry, *if* you grow up.
  • Auditor doubts the the company will continue its existence.
  • Company has consistently lost money through all of its existence.  Has survived through continual dilution of its stock.
  • To do the acquisition, they sold stock at six cents a share.  They bought back stock at three cents per share.  Now it trades at nearly 60 cents per share.  That makes no sense at all.

As for the acquisition, let me quote from the article linked above:

Since 2006, Dephasium Ltd. has launched a program of research and development to become the leader in the field of people protection against electromagnetic waves emitted by mobile phones. Dephasium Ltd. has succeeded in developing an Ancilia product that it believes protects up to 98% of electromagnetic waves issued by cell phones. This conclusion is based upon the results of technology tests administered by Cetecom ICT Services and included in its written report dated August 10, 2009.

Let me get this straight: you have a product that can reduce electromagnetic waves from cell phones, and you are willing to sell it for a piddling 70M shares of this crud company?  Why didn’t you do deals with Samsung, Apple, LG?  If the test is four years old, why don’t you have a big business by now?

The promoter paid $2.7M to advertise Dephasium.  When I googled the promoter and the one paying, I came up with nothing.  The amount paid is more than the value of the company acquired.  The whole thing stinks.

So avoid promoted stocks.  Don’t buy what someone is trying to sell you; buy what you have researched and discovered on your own.