Okay, time for the promoted stock scoreboard:
| Ticker | Date of Article | Price @ Article | Price @ 7/25/13 | Decline | Annualized | Splits |
| GTXO |
5/27/2008 |
2.45 |
0.008 |
-99.7% |
-67.1% |
|
| BONZ |
10/22/2009 |
0.35 |
0.002 |
-99.3% |
-73.5% |
|
| BONU |
10/22/2009 |
0.89 |
0.005 |
-99.4% |
-74.3% |
|
| UTOG |
3/30/2011 |
1.55 |
0.005 |
-99.7% |
-91.5% |
|
| OBJE |
4/29/2011 |
116.00 |
0.315 |
-99.7% |
-92.9% |
1:40 |
| LSTG |
10/5/2011 |
1.12 |
0.032 |
-97.2% |
-86.2% |
|
| AERN |
10/5/2011 |
0.0770 |
0.0002 |
-99.7% |
-96.3% |
|
| IRYS |
3/15/2012 |
0.261 |
0.003 |
-98.9% |
-96.3% |
|
| NVMN |
3/22/2012 |
1.47 |
0.300 |
-79.6% |
-69.4% |
|
| STVF |
3/28/2012 |
3.24 |
0.348 |
-89.3% |
-81.4% |
|
| CRCL |
5/1/2012 |
2.22 |
0.040 |
-98.2% |
-96.2% |
|
| ORYN |
5/30/2012 |
0.93 |
0.085 |
-90.9% |
-87.5% |
|
| BRFH |
5/30/2012 |
1.16 |
0.450 |
-61.2% |
-56.1% |
|
| LUXR |
6/12/2012 |
1.59 |
0.016 |
-99.0% |
-98.4% |
|
| IMSC |
7/9/2012 |
1.5 |
1.140 |
-24.0% |
-23.1% |
|
| DIDG |
7/18/2012 |
0.65 |
0.052 |
-92.0% |
-91.6% |
|
| GRPH |
11/30/2012 |
0.8715 |
0.136 |
-84.4% |
-94.3% |
|
| IMNG |
12/4/2012 |
0.76 |
0.160 |
-78.9% |
-91.3% |
|
| ECAU |
1/24/2013 |
1.42 |
0.318 |
-77.6% |
-95.0% |
|
| DPHS |
6/3/2013 |
0.59 |
0.040 |
-93.2% |
-100.0% |
|
| POLR |
6/10/2013 |
5.75 |
0.510 |
-91.1% |
-100.0% |
|
| NORX |
6/11/2013 |
0.91 |
0.510 |
-44.0% |
-99.2% |
|
| ARTH |
7/11/2013 |
1.24 |
0.550 |
-55.6% |
-100.0% |
|
|
7/25/2013 |
Median |
-92.0% |
-91.6% |
Tonight’s loser in waiting is North American Oil & Gas Corp [NAMG]. Formerly known as CalendarDragon, a software company, it became North American Oil & Gas. If the company were as good as the promoter says it is, it would never have bought a penny stock shell. It would have negotiated with private equity companies. Why would you make great claims, and yet:
- Have negative income, always
- Negative net worth
- No revenues, always
Note the risk factor from the 8-K:
We have no oil or gas reserves, and the probability of an individual prospect ever having oil and gas is extremely remote and therefore any funds we spend on exploration will likely be lost.The probability of an individual prospect ever having oil and gas is extremely remote. In all probability, the property does not contain any oil and gas. As such, any funds spent on exploration will probably be lost which will have a negative effect on our operations and a loss of your investment.
This is a constant with promoted stock scams. They work on dud companies, then a promoter tells a story. The SEC should prosecute such newsletter writers. The scams could not work without them, at least for now.
Anyway, expect losses here, as usual. The major energy companies have a far better idea of where they can find energy than a few people can.
Finally, please note in the 4-point type that the writer is getting paid over $100,000 to write the piece, and he does not have a lot of costs, because it is done online. I saw the ad at Bloomberg.com. Hey, Michael Bloomberg, Hopkins Grad like me! Do you want to be associated with penny stock promotions? You don’t have enough money already?
This stuff stinks. Really stinks, like flatus.
By David Merkel, CFA of alephblog
