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SFPI – Pump And Dump Spotlight

A.J. Watkinson January 27, 2013 Pump and Dumps No Comments
SFPI – 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 scam currently being run on Santa Fe Petroleum- SFPI

Santa Fe Petroleum – SFPI

Santa Fe is another penny stock that’s trading crazy amounts of shares while they’re being pumped.  The pumpers are going off the hook on this stock- trying every tactic on the planet to pull you in.

Unfortunately, Santa Fe Petroleum is yet another OTC stock we’re covering with a sordid past.

Let’s get into the pumping first, and then I’ll tell you WHY you should be avoiding shares of SFPI…

Red Flag #1: Paid PUMP!

Shazam Stocks was paid $100,000 by Full Corp Trading Limited.  Now, that’s not the only pumping going on with SFPI. FutureMoneyTrends works in conjunction with Shazam Stocks, and they expect to be paid $1,000,000 by Full Corp Trading Limited to pump shares of SFPI!

Red Flag #2: Horrible Financials

As of their latest quarter SPFI continued to post losses from operations.  Here are the numbers (if you can stand to look)…

  • $0 Revenue 
  • $1 million loss for the first 9 months of 2012
  • $1.5 million accumulated deficit
  • $700,000 in assets with $1.3 million in liabilities

The worst part about the loss how it happened.  You see, Santa Fe looks on the up and up only paying out $60,000 in compensation for the third quarter of 2012.  The problem is they’ve paid over $550,000 out in consulting fees!  I wonder exactly who got paid there?

On the next issue…

Red Flag #3: Checkered Business History

Santa Fe Petroleum may be their business name now, but prior to May 10, 2012 this company was known as Baby All Corp.  So what are a bunch of baby company people doing running a petroleum company?  Who knows… but you can bet your bottom dollar I’m not buying any shares of this company!

As a side note, apparently all is not moving along that swell in SFPI-land, as they’ve terminated their COO!  The filing says it’s no big deal, but I wouldn’t be too sure about that… people don’t leave a COO position for nothing.

Red Flag #4:  Excess Volume Related To Pumping

If you think the pumpers have no effect on a stock, think again.  Often times they can create massive moves in a company’s share price because of the normally low trading volume.  Well, SFPI is up on pretty big volume these days… according to the pumper- 6x the volume!

Look at the chart to see for yourself-

SFPI Santa Fe Petroleum

It looks like the pumpers telling the truth on this one.. volume is WAY up on this stock.  In fact, on Friday last week, speculators traded nearly 112,000 shares – well over the 16,900 share daily average!  Do you see how the volume (on the bottom of the chart) has picked up DRASTICALLY over the past few days?

Well, that’s a big red flag – as we haven’t seen positive earnings reported or anything fundamentally substantial… just the emails and press releases by the pumpers.

There’s no doubt this stock is being manipulated by the pumpers- and once it ends… you can bet well see a HUGE sell of like the one near the beginning of this chart.

You certainly don’t want to be holding the stock when that happens!

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.

At the end of the day, the predatory practices of penny stock pump and dump scams are allowed to continue by the SEC and our government.  As long as pumpers disclose they’ve been paid, everyone is willing to look the other way.

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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