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)
Ah yes, the joy of penny stock pharmaceuticals. You may recognize the symbol here, because we covered them just last month! The latest pump continues to promote AllStar Health Brands Inc… an AXXE subsidiary that sells a line of pain relief and muscle growth products.
But the paid pumping continues on… and just because the stock has rallied to $0.45, doesn’t mean it’s a BUY now. In fact, that’s what the pumpers want you to think! But it doesn’t make AXXE investment-grade by any means!
Here’s the scoop…
Red Flag #1: Paid PUMP!
The ante is up being paid to promote this stock. Last month, the going rate was $8,000.
This time around, Darth Trader is just one of the pumpers getting paid to promote this penny stock. Not only once, but twice, as this pumper was paid were paid $25,000 and previously $50,000…
Here’s the disclaimer for you to check out-
“We have been compensated twenty five thousand dollars cash via bank wire by a third party, Ramos and Ramos, to conduct the current investor relations advertising and marketing campaign for AXXE. We have also been compensated fifty thousand dollars cash via bank wire for a previous AXXE advertising campaign by a different third party, Ramm Venture Development”
The Stock Psycho is also in on the game, pumping this penny stock just this past week.
Red Flag #2: Not Filed w/ the SEC & Previous Failed Companies
AXXE was previously known as CGI Communications Services, and as of 2001, the company stopped filing with the SEC. Basically, you just have to trust that you’re getting enough data to make informed decision- not the SEC required data and formatting on the financial reports.
That is, when the show up…
Red Flat #3: Terrible Financial Data
The last time around I advised you that this company lost $8K on $2.4K in sales. As if that weren’t bad enough, in the most recent annual report release (we can’t say 10-K, as it’s not an SEC document), AXXE posted a net loss of $342,588 for 2013.
Ready to buy the stock yet?
I don’t care how good a product sounds, or how much a penny stock like this has rallied… you shouldn’t be buying shares of a stock that’s being promoted by known pumpers that has finances like this!
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!”