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GFOX – Pump and Dump Spotlight

A.J. Watkinson December 8, 2013 Pump and Dumps No Comments
GFOX – Pump and Dump Spotlight

GFOX – Pump And Dump Spotlight

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: Grey Fox Petroleum GFOX

Grey Fox Petroleum is one of those companies that looks good on the surface, but once you dig into the financials turns out to be a real mess!  But that’s not all.

Red Flag #1: Paid PUMP!

RDI was paid $25,000 by Lake Group Media to pump the stock.  Here are the details we found this disclaimer in an email from Featured Penny Stock-

 “Research Driven Investor llc received twenty five thousand dollars cash from Lake Group Media, Inc, a non-affiliated third party to profile GFOX for a one day investor relations campaign.”

Additionally, their ticker symbol shows up promotional emails from Investor Soup, Research Driven Alerts, Awesome Stocks, StockHideout, and The Bull Report just to name a few

Red Flag #2: Horrible Financials

The good news for GFOX investors is that they actually report to the SEC.  The bad news is the company is generating $0 revenue and paying themselves officer’s salaries and “professional fees”.

If I were an investor, I’d want to know where the money is going… so here’s some of what we found:

  •  $317,180 net loss for the 6 month period ending September 2013
  • $155,069 paid to officers in this period, and $120,862 paid as professional fees
  • Only $6,289 in cash on the books

It would appear the only thing happening at GFOX is people taking cash out of the company, and the next problem I found simply compounds the issue…

Red Flag #3: GFOX executed a Securities Purchase Agreement with a company not regulated in the US

The latest news out of Grey Petroleum is that Rooftop Investments, a company registered in the Marshall Islands, been granted control of 100,000 share of Grey Petroleum in exchange for $100,000 cash.

The filing with the SEC says the monies will be used for administrative expenses and to finance the cost of the West Ranch exploration.

Here’s the deal…

$100,000 in the oil exploration game doesn’t really stretch that far.  And in my opinion, it’s simply going to be used as salaries for the company officers again.

So why would this Rooftop Investments willingly give up $100,000 to buy shares in a non-profitable company?

Well, if you held 100,000 shares in a company whose stock was being pumped (as we’ve shown above), and it rose in price from $1 to $2- obviously you’d stand to make a considerable amount of money if you sold the stock at peak of the pumping for a profit.

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!”

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About The Author

A.J cut his teeth while working for more than 12 years on the corporate side of the financial services industry in the suburbs of New York City. In addition, A.J. has successfully traded stocks, options and currencies as an independent trader since the late 90's. Eventually A.J. moved out of the "rat race", landing in North Scottsdale, Arizona. During the past few years, he's worked as the editor of a number of high profile financial newsletters. In this role, he's run trading services for penny stocks, options, currencies, ETFs, and FOREX. While under his direction, each of these trading services had turned in positive performance... something very rare in the financial newsletter industry. In addition, he's been a regular contributor to a number of financial websites- writing under multiple pen names. A.J.'s current goal is to share his real world experiences and success (and failures) in the various financial markets to help others not only make money- but avoid losing it. It's this vision and passion that has led A.J. to launch pennystockreporting.com. Most of all, A.J. hopes to keep the little guy from getting caught up in the highly unscrupulous penny stock pump and dump scene.

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