Exposing 3 Penny Stock Scams

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Yesterday, the SEC {released} a {news release} detailing its charges against Samuel DelPresto – {a cent} stock promoter they’re accusing of pocketing {a lot more than} $13 million dollars through elaborate pump and dump schemes, saying {he}:

“[T]eamed up with others to secretly obtain control of substantially all available stock in four microcap companies {also to} facilitate coordinated trading that created {the looks} of liquidity and market demand for the stocks.  After unwitting investors were enticed through promotional campaigns {to get} the stock at inflated prices, DelPresto dumped his shares {in the marketplace|out there|available}.”

Criminal charges are pending in the U.S. Attorney’s Office for the District of {NJ}, and Regional Director of the SEC’s {NY} office {continues on} {to state}:

“The {group of} fraudulent schemes alleged {inside our} complaint enticed unwitting investors {to cover} inflated {charges for} four companies secretly controlled by DelPresto {among others} {and} left the investors holding the bag {once the} manipulative activity ceased and the stock price dropped.”

The story’s been {obtaining a} ton of press in the financial news, but there’s one big problem…

It’s not new news.

The SEC lists four companies as having been manipulated/pumped by DelPresto, including BioNeutral Group (BONU), NXT Nutritionals Holdings (NXTH), Mesa Energy Holdings (MSEH), and Clear-Lite Holdings (CLRH).

Download this cheat sheet {to understand} how I busted 3 penny stock pump dumps 5 {years back}.

{And you also} {know very well what}? I exposed/busted 3 out of 4 {of the} pump and dumps over 5 {years back}!

Let’s {have a look}, {so that you can} {learn to|figure out how to|discover ways to} spot/expose these yourself too {given that they} still are happening regularly…shall we?

Mesa Energy Holdings (MSEH)

{To begin with}, here’s {articles} I wrote {back} March of 2010: “10 {EXPLANATIONS WHY} Mesa Energy Holdings, Inc. Will Drop 50%+.”

{In the event that you} ask me – and clearly, {more folks} {must have} asked me/read my blog – {that one} was {just about|virtually} a no-brainer {since it} followed {the precise} rules of {just what a} penny stock pump {appears like}:

First, my students and {I ran across} {a huge amount of} promotional mailers for MSEH ({a few of} which had the SEC-mandated disclaimers made invisible) – all {delivered} {by way of a} penny stock promoter we were already watching {due to} his shady activity {previously|during the past}.

Next, came this beauty of an advertisement, {that your} Northbound Marketing Group admitted to paying {a lot more than} $364,000 for:


(And just {in the event you} weren’t keeping track, {this is actually the} same {sort of} marketing fluff they {useful for} Americas Energy Company (AENY), NXT Nutritionals Holdings Inc. (NXTH), Clear-Lite Holdings, Inc. (CLRH) and Jayhawk Energy Inc (JYHW) – {all of} which dropped 99% from its high, post-promotion.)

{In the event that you} dug {just a little} deeper – like {I did so}, and like I teach my students to – {you’ll} {have observed} the {indicators} {with this} pump and dump a mile away:

  • MSEH released {pr announcements} featuring “engineering reviews” claiming that “revenue {on the} life of the project {could possibly be} {just as much as} $405 million gross before expenses, or $332 million net of expenses.” Sounds great, except the “independent licensed petroleum engineer” behind the predictions was Jeffrey Chadwick… who also happened to {take a seat on} MSEH’s advisory board.
  • {Among the} company’s quarterly reports from late 2009 detailed the verrrrry low prices shareholders were in at – some {just as much as} 90%+ discounts over current prices. Jeez, {you imagine} {the truth that} they have {an incredible number of} shares {to market} at market rates might {provide them with} a reason {to obtain} promoters to {distribute} {a lot more than} $364,000 in advertisements??
  • MSEH owned {around} needing cash – {just as much as} $1+ million {merely to} {ensure it is} to {the finish} of the quarter, {and} $10+ million {to perform} their ambitious project. {Believe me}. It’s no coincidence their stock rose 10X {simultaneously} they {had a need to} raise capital tied {as well as} he promotional mailings. It’s {a vintage} penny stock pump and dump, it doesn’t get {any longer} clear cut.

I won’t bore you with {another} seven {roughly} signs that led me to call this stock out (watch this guide to penny stock promotions {in the event that you} {actually want to} know).

{Underneath} line, though, is that – {since i have} busted this pump and dump {spacious} {back} 2010, my students {could actually} profit to the tune of $20,000+ shorting the stock before it dropped 90%+ {in cost} within a {couple of months}.**

My prediction was strong enough that it {found} national attention, which just {enables you to} wonder why it’s taken the SEC {such a long time} to catch on…

Clear-Lite Holdings (CLRH)

{A month} after my expose on MSEH, I caught wind of another major penny pump and dump happening – {this time around}, Clear-Lite Holdings (CLRH).

{That one} {found} us {thanks to} notorious promoter Courtney Smith, and it’s reported {he} received nearly $500,000 for the mailer that drove CLRH from $1.00 a share to $1.75 a share (before its post-mailer drop of 77% {right down to} $0.43 a share all {in a few days}).

{Have a look at} that fun drop when everything fell apart:


{A lot more} fun {may be the} way {among} my TIMalert subscribers {found} {with this} scam. Here’s his message:

CLRH saw the address {for his or her|because of their} “corporate headquarters” on yahoo 102 North East 2nd Street Suite 400 Boca Raton 33432. I literally live {outside} and the headquarters is mailbox in a UPS store….


{on the} florida corp filing they use PMB 400 {that is} correct for a ups box(private mail box) {when you are} legally {never to} use suite anymore {for all those} {forms of} boxes ({i really believe}) like they do {on the} website

Their. corporate. headquarters. was. a. UPS. box.

Here’s a closer {consider the} actual corporate headquarters of Clear-Lite Holdings:


I honestly don’t know {that is} more outrageous. This complete and utter scam, or {the truth that} it’s taken the SEC this long {to create} charges against Samuel…

NXT Nutritionals Holdings (NXTH)

Finally, NXTH – another penny stock pump and dump I busted {spacious} {back} March of 2010.

{That one} was actually {a great} one {for me personally}, because my adversary in {the whole lot} bought me {a lot of} press attention.

{Works out}, when you {undertake} Shaquille O’Neal, the media pays attention…and {though it} was {a little} scary {for me personally} {initially}, I eventually prevailed since all {I did so} was post facts!

I’d already called out NXTH for shady promotions when this $500,000+ mailer {arrived}:


I took some heat for {that certain} too, with NXTH’s sleazy CEO telling Dan Dorfman on the Huffington Post that the stock collapse was {because of} “short sellers like Tim Sykes” ({even though} I never shorted it, I only exposed the mailer).

Imagine my surprise, then, when {I came across} NXTH being pumped {JUST AS BEFORE}:


Wouldn’t {you understand}, that next pump just happened to coincide with a $320,000+ mailer {developing} {simultaneously} insiders were likely dumping {in to the} propaganda-based buying.…


I actually got a cease and desist letter from Shaq’s lawyers {with this} one, {however the} promotional mailers were so inaccurate, I couldn’t just {the stand by position} and do nothing {therefore i} refused to {remove} my {post} and Shaq eventually backed {out from the|from the} deal {once the} stock dropped too low and he sensed he might’ve been duped…although he {is still} proud to admit that he’s into {very cheap stocks} {nonetheless} and I wish someone {those that} lost on NXTH went after Shaq directly so maybe {he’d} wise up!

{In the event that you} would have {browse the} SEC filings like {I did so}, you would {have observed} that, despite {almost all their} {pr announcements}, NXTH’s sales actually dropped 60%+ {through the} first 9 months of 2009.

{Not forgetting} {the truth that}, {1 day} after raising $5.6 million, NXTH’s stock collapsed another 29% today to just $0.77  per share – {a fantastic} 76% drop from the $3.22 highs {developed by} {the initial} promotional mailer all within days.

The signs were all there – {and also} better, they let my students profit {should they} had {the very best} brokers for penny stock short selling. {Listed below are} two that walked away with solid, {or even} great, profits ({despite the fact that} I hadn’t shorted this joke of a stock {at that time} yet):

Got {removed from} my NXTH position by my profit sl @ 2.48 for a $2000 profit. Wasn’t at the computer {throughout that} time otherwise {I would} have stayed in longer because {I possibly could} have watched the action around that level. I’m not getting {back} today. $2900 total on the pump {up to now}, I shouldn’t get {before} myself.


+550 on NXTH


And here’s how my students and I accidentally made $22,000 {within an} hour on NXTH {whenever we} caught its collapse {down the road}.

{It is possible to} probably guess {right now} I’m not that smart or great at math {just how} was I {in a position to} beat the authorities to these pump and dumps so quickly, right?

These stocks {certainly are a} joke…all {you need to do} is {find out about} {very cheap stocks} here, {observe how} {the overall game} works {and you may|and you will|and you could} spot these pump and dumps a mile away {exactly like} me and my millionaire trading challenge students do {Each and every} time!

{I want to} repeat, {do you wish to} know the signs that’ll {assist you to} spot penny {trading} pump and dumps five years {prior to the} SEC – and {ways to} profit {from} these moves {once you} see them?

Join me.

Students {in my own} Millionaire Challenge, my TIMAlerts and my DVD courses all {learn how to} leverage promotional mailers, {how exactly to} read SEC filings {also to} separate fact from BS {with regards to} pump and dumps.

{You could be|You may be|You will be} {one of these}.

I’m {ready to} share {all that} with you {aswell}, but {only when} you’ll work hard {to place} {the data} it’s taken me {a lot more than} 15 years {to obtain} into practice. Traders {that are} as lazy/sketchy {because the} stocks I {mentioned previously} {do not need to} apply.

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