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: (AXXE)
It’s back to the mines we go. It’ looks like the paid pumping crowd is hoping to dig deep into your pockets and take what they can from you on Suburban Mining!
The ugly gets uglier as I dove deep into this company’s financial nightmare. Read on…
Red Flag #1: Paid PUMP!
Lucky Stock Picks is just one of the pumpers getting paid to promote this stock. In fact, they were paid $16,000…
Here’s the disclaimer for you to check out-
“Raven Consulting Corp. has been compensated up to $8,000.00 c ash for this AXXE advertising and promotion by StockAlertsMedia, a third party Raven Consulting Corp has previously been compensated up to $8.000.00 cash for DKAM & FIN W advertising and promotion by a third party.”
Red Flag #2: Not Filed w/ the SEC & Previous Failed Companies
Not surprising, we’re looking at a company that hasn’t filed with the SEC since 2001. The company was previously known as Meridian Holdings and a ticker symbol of MEHO!
After that failed, the company turned into CGI Communications Services, Inc until July 26th, 2008. That’s when Axxess Pharma took over control of the stock.
At the time, AXXE issued 99 million shares (and outstanding), but authorized 100 million.
Interestingly, 50% of the company stock is held by Blue Ivory International Holdings, which owns 55%. The only other major shareholder is the sole director, and CEO Peter Daniel Bagi, MD who owns 9% of the shares.
All the preferred stock is also held by Blue Ivory International – all 20,000 shares! That’s a lot of control for a mystery company out of the Bahamas.
Red Flat #3: Terrible Financial Data
In Q4 of 2013, AXXE posted a loss of $8,280 on just $2,400 in sales. The company has been in business since 2008, and they’re doing just $2,400 in a quarter… not so hot!
Secondly, Axxess Pharma has over $100,000 in liabilities with just $100,000 in assets. But I call asset valuation into question…
You see, the company is granting themselves $50,000 in Goodwill- not what you want to see- especially since the financial report shows no cash and $2,400 in accounts receivables. And how are they quantifying goodwill exactly? In my opinion, it looks like a nifty offset for the loans outstanding to balance the books… but that’s just my opinion.
Wait a second- you see that? The company did $2,400 in stated sales last quarter, but didn’t collect anything and it’s all AR? That’s not what I want to see in any company I might invest in.
I just hope the tout from the paid pumper to “get in on the ground floor before Wall Street finds this stock” doesn’t suck you in!
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!”