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: USA Real Estate Holding, USTC
Ok, normally I like to take a good look at a companies business and history before rendering an opinion on a stock. But in this case, it’s an open and shut case- with a GUILTY for pumping!
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 $5,000…
Here’s the disclaimer for you to check out-
Raven Consulting Corp has been compensated up to $5.000.00 cash for this USTC advertising and promotion by Speak Easy Media LLC. a third party. A couple of the other pumpers firing out emails on USTC include PennyStockMarketBulls and Stock Professors- not high quality research in the least bit.
Red Flag #2: No Longer Registered With The SEC
When a company pulls registration with the SEC, it takes away a serious level of protection for investors. The company no longer needs to file financial data in a consistent and complete manner… they can basically tell you whatever they want, and omit items required by the SEC.
Additionally, the SEC registration costs money to maintain- so a company that can’t afford SEC registration shouldn’t be a publicly traded company in my opinion. And USTC pulled registration with the SEC back in November last year (2013). I’d suspect for a very good reason… they’re broke!
Red Flat #3: Terrible Financial Data
USTC has $15 in the bank as of their last financial report in December last year. For a company looking to buy commercial real estate, what are they planning on buying with not even a 20-spot in the bank?
It gets better…
The recent report includes the following. -
- $165 nine-month loss
- $0 revenue since inception- as in they’ve never made money
- 131K in current liabilities (accounts payable and shareholder loans)
But the most disturbing fact I uncovered is that there are more than 1.37 BILLION (with a “B”) outstanding shares! What the hell does a company with $15 in assets have issuing $1.37 BILLION shares?
NONE, and that’s a fact!
There’s no way any investor in their right mind should be paying $0.07 for a share of $15 in assets, divided by more than a billion shares! Boy, these paid stock promoters need to get a reality check…
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!”