Roll a dog turd in sugar doesn’t make it a donut–Chicago Slim
Invert, always Invert
Carl Gustav Jacob Jacobi was a German mathematician who lived in the 1800s. Jacobi once said “man muss immer umkehren” which translates to “Invert, always invert.” Jacobi believed that the solution for many difficult problems in mathematics could be found if the problems were expressed in the inverse. —http://amarginofsafety.com/2011/01/09/456/ (recommended)
This is a lesson in reverse search or what to avoid, though I am seeking shares (GWBU) to short. We will study:
Penny Stocks/Microcap Fraud
In the U.S., shares trading for less than one dollar are known as microcap or penny stocks. Their low valuation and low trading volumes make them susceptible to price manipulation schemes. Penny stocks also lack transparency in their underlying business and operations and often do not have a verifiable financial history, making them susceptible to securities fraud schemes.
First Case Study: SNPK
Our first case study in early March 2012 on Pump and Dumps (Frauds) was SNPK, last mentioned here http://wp.me/p1PgpH-LC
I call these types of promotions, “Death Stocks” because their stock charts eventually look like this (Note the flat line, similar to the chart of vital signs of a dying/dead patient:
Second Case Study: GWBU
Current Stock Price as of June 5, 2012: $1.75. 360 million outstanding shares at $1.75 = $630 million market cap. Tangible Net Worth ($70,500). Price above value??? More than $600 million for negative net worth. No revenues. Mr. Daniele Brazzi is both the CEO and CFO. Located in Baloney, Italy. This company and all its affiliates exist for one purpose only–to sell pumped up stock to the unsuspecting, greedy and ignorant.
Now GWBU is in the early stages of a Pump. Ultimate Value—IMHO–within 22 months $0.00, where the stock will find excellent “technical” support.
A detailed (38 pages) tutorial on the GWBU Pump and Dump with current financial statements are here:Great Wall GWBU Pump and Dump The Horror! The document is almost comical, but this stock is a DEATH STOCK.
Investigators closing in?
But where are the Feds? The SEC? Here they are: http://www.youtube.com/watch?v=jocRd-aajW0
Updates to follow………….
Below is a link to an article discussing the pump and dump in more detail. Despite 300 million shares outstanding, not a share to borrow. Here is as manipulated a market as you can find. This is a $0 within two years like our other study, SNPK.