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: Rightscorp – RIHT
The amazing thing about stock promoters is how they’ll go to any length to make you believe the stock they’re pumping is a “must own” stock. But nothing could be further from the truth on Rightscorp! Take a look-
Red Flag #1: Paid PUMP!
Investor Soup was paid $25,000 to promote RIHT…
Here’s the disclaimer for you to read-
Currently Sherwood Ventures, LLC is being compensated Twenty Five Thousand dollars from Pride Media (a non-controlling third party) for RIHT advertising and promotional services.
But their not alone…
Other pumpers such as PennyStockProfessor, StockRoach, and Stock Hideout were pumping this stock back in March, and again this month.
Red Flag #2: Financial Nightmare!
Hey, Rightscorp just reported revenue in their latest company financial report. Unfortunately, running their business is a losing proposition. In fact, they lost more than $600K in just the last quarter.
But it gets worse. Just look at March 2014 quarterly numbers…
- $4.8 million accumulated deficit
- $1.1 million in current liabilities
- $800K in operating expenses
What’s worse, outstanding shares of RIHT grew from roughly 28 million in March 2013 to over 69 million as of March this year! Not what shareholders want to see… as this massively devalues current shareholders worth. Basically, the company is issuing more shares to survive on the cash proceeds- not exactly what we call investment grade!
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!”