Okay, here’s the promoted stock scoreboard:
| Ticker | Date of Article | Price @ Article | Price @ 6/11/13 | Decline | Annualized | Splits |
| GTXO |
5/27/2008 |
2.45 |
0.011 |
-99.6% |
-65.8% |
|
| BONZ |
10/22/2009 |
0.35 |
0.004 |
-98.9% |
-71.2% |
|
| BONU |
10/22/2009 |
0.89 |
0.010 |
-98.9% |
-71.2% |
|
| UTOG |
3/30/2011 |
1.55 |
0.004 |
-99.7% |
-93.3% |
|
| OBJE |
4/29/2011 |
116.00 |
0.554 |
-99.5% |
-92.0% |
1:40 |
| LSTG |
10/5/2011 |
1.12 |
0.031 |
-97.2% |
-88.1% |
|
| AERN |
10/5/2011 |
0.0770 |
0.0002 |
-99.7% |
-97.1% |
|
| IRYS |
3/15/2012 |
0.261 |
0.003 |
-98.9% |
-97.4% |
|
| NVMN |
3/22/2012 |
1.47 |
0.080 |
-94.6% |
-90.8% |
|
| STVF |
3/28/2012 |
3.24 |
0.390 |
-88.0% |
-82.8% |
|
| CRCL |
5/1/2012 |
2.22 |
0.059 |
-97.3% |
-96.2% |
|
| ORYN |
5/30/2012 |
0.93 |
0.175 |
-81.2% |
-80.2% |
|
| BRFH |
5/30/2012 |
1.16 |
0.300 |
-74.1% |
-73.0% |
|
| LUXR |
6/12/2012 |
1.59 |
0.023 |
-98.6% |
-98.6% |
|
| IMSC |
7/9/2012 |
1.5 |
1.066 |
-28.9% |
-30.9% |
|
| DIDG |
7/18/2012 |
0.65 |
0.070 |
-89.2% |
-91.6% |
|
| GRPH |
11/30/2012 |
0.8715 |
0.180 |
-79.3% |
-94.9% |
|
| IMNG |
12/4/2012 |
0.76 |
0.180 |
-76.3% |
-93.8% |
|
| ECAU |
1/24/2013 |
1.42 |
0.420 |
-70.4% |
-96.0% |
|
| DPHS |
6/3/2013 |
0.59 |
0.107 |
-81.8% |
-100.0% |
|
|
6/11/2013 |
Median |
-95.9% |
-91.8% |
Dephasium has fallen almost 82% in 6 days. It is a definite over-achiever in losing money.
I promise this is not going to become an “all promoted stocks, all the time” blog. I limit it to when I receive promotions. I got another one today, this time to my e-mail. The future loser is Norstra [NORX]. You can see a promotion like the one I saw here.
Here are the bullet points:
- Never had a penny of revenue.
- Consistent losses every year.
- Only stays afloat by selling stock.
- Auditors don’t think they are a going concern.
- If management has been selling shares to get cash at $0.001, why is the stock trading near $1?
It is highly likely that this company will do badly, as have other promoted stocks that I have written about. But here’s the fun part — I wrote to the guy whose organization sent out the promotional e-mail. He didn’t know that they were doing that; he was concerned for the reputation of his organization, and he is putting a halt to advertising stock promotions.
And so, Aleph Blog happily takes a small victory lap. Promoted stocks are bad enough, but when reputable firms aid them, it is far worse.
By David Merkel, CFA of Aleph Blog
