In the world of penny stocks, you’re sure to find oodles of great, unknown companies to invest in. But there are also penny stock scams designed to bilk hard-earned cash from investors. And usually you’ll know its hit you after you’ve watched your investment evaporate into thin air!
We know what to look for, and tell you who’s out there pumping stocks using paid promoters.
It’s our job to expose penny stock pump and dump scams…
And we take real pleasure in putting the smackdown on the latest penny stock pump and dump scams.
As you read, you’ll see the big red flags we’ve come across on these companies. And with all the great penny stocks out there… there’s no reason to put a single dime into any of these companies!
This week, we’re exposing a pump and dump scams on:
Avatar Ventures- ATAR
Avatar Ventures has nothing to do with the mega-blockbuster Avatar released in 2009… but instead they’re focused on the Fantasy Football world. However reading the companies filings, you’ll hear differently.
Red Flag #1: Paid PUMP!
Among other companies, speculatingstocks.com, Inc. was paid $750 to pump the stock. Pennystockmarketbulls.com was paid $7,000 to pump the very same stock!
Additionally, their ticker symbol shows up promotional emails from beststocks, Russ Urban, Actual Gains, Pennystockmarketrumors.net and more!
Red Flag #2: Limited Filings
The OTC Marketplace reports that ATAR doesn’t file regular financials. Nevermind the company hasn’t filed much in earnings, here’s the disclaimer straight from OTC-
Designed for companies with financial reporting problems, economic distress, or in bankruptcy to make the limited information they have publicly available. The Limited Information category also includes companies that may not be troubled, but are unwilling to provide disclosure pursuant to OTC Pink Basic Disclosure Guidelines.
What their filings do show is really bad financial data, see below…
Red Flag #3: ATAR hasn’t filed a financial report since 2012!
While it may appear this company is popular and in the news lately, April 2012 financials show $0 in revenue and a $3,163 loss. Not really much to invest in there, is it? And it’s been more than 6 quarters since Avatar filed any earnings.
So why the resurgence of interest?
Apparently they signed a memorandum of understanding. Say what?
Here’s the press release-
ATAR is pleased to announce that it has signed a nonbinding Memorandum of Understanding with Vauntek Inc. operating as Fantrax (“Fantrax.com”), a Fantasy Sports Website.
Still not sure why you want to invest in this penny stock?
The answer is don’t- a MOU is nothing worth putting your money up on or into.
The Wrap Up:
Too many investors get sucked into these nightmare penny stocks scams. They fall for the overly-optimistic projections the paid promoters are selling. In the search of easy money, investors lose sight of what a real return should be… and end up holding the bag.
When investing in pumped penny stocks, it’s the ultimate case of “let the buyer beware!”