This week weâ€™re exposing these two popular Pump & Dumps: TNI BioTech (TNIB) and Empowered Products (EMPO).
TNI BioTech (TNIB)
At first glance, TNIB looks like a straight up great biotech company.
Theyâ€™re researching new treatments for cancer, HIV/AIDS, and other infectious diseases.
That all sounds great doesnâ€™t it?
Well, thatâ€™s where the good stuff ends. TNIB stock is the last place Iâ€™d put a single penny.
You see, the notorious pumper Research Driven Investors (RDI) is at it again.
RDI also owns David Cohen, as well as a handful of other pumping outlets.
And to tout shares of TNIB stock, the pumper was paid $35,000 by BBC, Inc.
So right off the bat, we [probably] have no reason to trust a word they say about the stock.
But when the pumpers write up stocks, itâ€™s all sunshine and daisies. And after doing a little research on my end, thatâ€™s the last thing going on here.
For starters, TNIB does not file any documents with the SEC â€“ theyâ€™re an unregistered stock. That means a layer of protection for investors is missing. The reports can come out in any fashion or time frame TNIB wantsâ€¦ not in the format dictated by the SEC.
Next, the company has $369 in cash in the bank as of June 30th. Of course theyâ€™re claiming their patents are worth $900,000. Thereâ€™s no real way to know what they could be worth so why donâ€™t we just say theyâ€™re worth a gazillion bazillion dollars?
Dicing up TNIBâ€™s expenses is enough to make me vomitâ€¦
The three largest categories of spending by this company were Wages, Travel Expense, and Legal and Professional Fees. And all combined, the company lost $146,611 in the second quarter.
Now, never mind the pumping, the lack of SEC registration, and the [horrific] financials. Take a look at this chartâ€¦
From $5 to over $30, and back to $5 again in no timeâ€¦ thatâ€™s a classic pump and dump.
And thatâ€™s the two year chart of this biotech stock. TNIB seems like a screaming bargain when looking at it from this distance, right? But letâ€™s dial in and see how the stock looks from up close.
Whoaâ€¦ can someone say overbought? Iâ€™d say so, considering thereâ€™s no earnings news out to justify the price action, and the pumping started from RDI on 9/5/12. Weâ€™ve seen this before, and weâ€™ll see it again.
All Iâ€™m saying is, when a stock is being pumped by a notorious pumper like RDIâ€“ itâ€™s best to just stay awayâ€¦ this thing will more than likely be back below $1 in no time!
Empowered Products (EMPO)
Now, youâ€™re not going to believe whoâ€™s behind all the pumping here. Yep, RDI and David Cohen are also promoting EMPO at the same time theyâ€™re pumping TNIB. It must be busy season for [potential] penny stock scams because they cashed in for another $35,000 from Crown Pacifica Media Services for this penny stock promotion!
Thatâ€™s $70,000 for pumping two stocks for whatâ€¦ a week? Manâ€¦ Iâ€™m on the wrong side of this deal.
The cold, hard facts are clear as day â€“ EMPO loses money. Yeah, sure, Empowered actually has revenue. The problem is their cost of revenue chews up most of their gross sales. And that leads to loss after loss, after loss.
In fact, EMPO has somehow found a way to increase their losses year over year. In 2011, EMPO lost $119,637 for the quarter ending June 30th. This year, that amount has more than doubled to $261,614!
And before you invested, youâ€™d certainly need to know this infoâ€¦ EMPO just completed a reverse merger. Yes sir, on June 30th the company executed a 44-1 forward stock split. And the board of directors approved increasing total authorized shares common stock from 50 million to 2.2 billion.
Talk about dilution potential.
Finally, to remove any reason you may have to buy this stock, Iâ€™m showing you the chart since the pumping started in early October. Check it outâ€¦
No doubt weâ€™ve seen this pattern before. Climb, climb, climb, higher and higherâ€¦ and then Boom, the stock crashes in a single day (or 2).
Given the fact the company is losing money hand over fist, the rapid rise in EMPO can be attributed to the pumping. Thatâ€™s just pure manipulation in my book. And you should never buy stocks that are outright manipulatedâ€¦ you almost always end up on the losing end of that equation.
Other Penny Stocks Being Pumped This Week
- PUNL â€“ Stock Mister was paid $12,500 by Tumaco Ventures (BAS, LLC)
- CNET â€“ Penny Stock Advice expects to receive â‚¬10,000
- GRST â€“ Equity Trading Alert was paid $7,500 by RDI, LLC
A final word (and warning).
These are just a few of the potential â€śpump and dumpsâ€ť weâ€™ve seen lately.
Remember, thereâ€™s a lot more of this going on than we can highlight here.
As you know, penny stocks are a great place to invest your money. You just have to do your due diligence to stay away from all the schemes and scams out there these days!
Until next time,
Source: Penny Stock Research