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: Rewards Nexus ERNI
Rewards Nexus is another remade stock, and waiting for unsuspecting suckers to buy in. That’s what we believe the pumpers are hoping anyway!
Red Flag #1: Paid PUMP!
Penny Stock Explosion was paid $1,000 by Microcap Innovators, LLC. In addition, we found this disclaimer in an email from Penny Stock Market Bulls-
PennyStockMarketBulls.com has been compensated $6,000 cash via bank wire to provide one day of marketing and promotional services for ERNI by a non-affiliated third party (Wise Microcap Consulting).
Clearly the push is on as 24-7 Stock Alert, MBSA, and Wall Street Buzz Alerts are also sending out email pumps… never a good sign when a bunch of known pumpers are involved!
Red Flag #2: Horrible Financials
Well, since they’re a newly minted penny stock, we have to look back at the financial information for their previous company. Here’s what they tell us themselves in their latest quarterly report…
Name: NIS Holdings Corp. (As of February 17, 2010)
Formerly known as
Associated Media Holdings, Inc.
And speaking of latest, this is from August- as they haven’t been able to report financials since… for some strange reason.
Shocking, isn’t it? Here’s what they did report-
- $171,738 operating loss for the first 6 month period of 2013
- $27,160 cash loss in the same period
- Only $13,965 cash on the books
As you can see, things aren’t what we consider “investment grade”.
Red Flag #3: No Longer Filing Reports with the SEC
While we’re not really thrilled with a lot of what goes on at the SEC, they do regulate the activities and require basic standardized information from companies being publicly traded on the open market.
But apparently ERNI isn’t filing with the SEC any longer. Their last report, filed by their previously known entity, was in May of 2011.
Since then they’ve been filing their own reports not subject to the review of the SEC. Great, right? But it gets worse…
In September, ERNI filed a “Notice of Late Filing” and haven’t filed any financial reports since June. Are you ready to buy shares?
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!