I’m not going to run the promoted stock scoreboard again so soon, but let it be known that Dephasium has fallen ~75% in the 5 days since I wrote about it. Put on your peril-sensitive sunglasses, here is the chart:
Yes, my article was written at the peak. In this case the “dump” was rather violent.
But why I am I writing about promoted stocks this evening? This morning in my e-mail, I received this [note: after a little time, this link won’t work].
But who sent it to me? The Washington Times. After receiving it, I sent someone in their web area this letter:
I don’t know if you handle this aspect of Washington Times advertising, but today I received a promoted stock ad for a fraudulent company from the Washington Times via e-mail.
The company’s name is Polar Petroleum [OTCBB: POLR], a company which:
- Has never earned a penny of revenue.
- Was a “technology company” until last year, “Post Data.” From its last 10K: “The Company intends to market a service of decommissioning electronic data storage devices, making them inoperable and thereby making the electronic data contained therein or on permanently un-recoverable.“
- Is likely being used by the promoters to do a “pump and dump,” where affiliates do a series of transactions that inflate the price of the thinly traded stock, and use this promotion to dupe people into buying out their shares at inflated prices, leaving them holding stock of a worthless company. The net worth of the company is $0.005/share – It trades near $5 thanks to the pump.
It’s dishonest for the Washington Times to participate in crud like this. Why is the Times selling its reputation for a bunch of promoted stock scammers?
PS – I have written about this extensively. Here is a sample:
To have a reputable newspaper convey the garbage that the promoters put forth is new, and worrisome.
But about the same time that I hit the “Send” button, the SEC took action. They suspended trading in POLR. They justified it here. Good work, SEC! (Can’t remember the last time I said that.) And if you want to see the reactions of those that follow promoted stocks regarding POLR, you can see it here.
Though the loser promoting this garbage said it would go to $27, I’ll give you a different prediction: it will go to less than fifty cents within a year. Given the actions of the SEC, it could easily go there on June 24th, when trading reopens.
Here is my advice to the SEC: maybe you could create a unit that follows promoted stock fraud, and do exactly what you have done with POLR to every promoted stock scam. It would eliminate a significant area of fraud in our equity markets.