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: Suburban Mining (SUBB)
It’s back to the mines we go. It’ looks like the paid pumping crowd is hoping to dig deep into your pockets and take what they can from you on Suburban Mining!
The ugly gets uglier as I dove deep into this company’s financial nightmare. Read on…
Red Flag #1: Paid PUMP!
Damn Good Penny Stocks is just one of the dozen or so pumpers getting paid to promote this stock. In fact, they picked up $25,000 for their pumping efforts…
The other pumpers tallied up roughly $100K from my count- and you know there are even more out there off my radar.
Red Flag #2: Not Filed w/ the SEC & Multiple Past Company Names
Boy, this flag is one of the more common ones we see. You take a company that fails, about to fold up, and either snatch up their stock for nothing… or find some other way to bury past demons. Then they can now find public investors to buy into their company’s idea while hoping to get rich off a pump and dump.
Make sense? Well, it happens all the time. And SUBB is the new incarnation of the company formerly known as Lexington Energy Services.
Lexington had filed their last SEC documents in 2008. Now, we see SUBB start trading and unfortunately for investors- they’re avoiding SEC filings. The company is not in compliance with the SEC, or they just don’t want to spend the $ to file with the SEC.
Either way, do you want to invest in a company like that? Not me!
Red Flag #3: Financial Nightmare!
The first scary line item on their financial report I find is assets: $331 in cash as of November 2013.
Second, SUBB has $737K in liabilities and just $282K in mineral right assets (of course add in that big wad of cash above)…
And finally, Suburban Minerals posted a $10,000 loss for the quarter ending November 30th.
But the very scary part for every day investors is this… from 2012 to 2013, the outstanding share count jumped from just 101,843,689 – to 303,042,483 shares!
With $311 in cash- where did the proceeds from the increased outstanding stock go?
Hopefully you’ll avoid putting your money into this sad little want to-be diamond miner, and save it for a real investment!
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!”