GRPH – Pump And Dump Alert – February 22, 2013
This week were exposing one of the most popular Pump & Dumps: Graphite Corp. (GRPH).
That said, welcome to Pump and Dump Friday, where every week we identify at least one of the many potentially bogus promotions going on in penny stocks today.
If you dont know how these schemes work, be sure to check out this free report that exposes the whole thing.
Without further ado, here is todays disasters waiting to happen:
Graphite Corp. (GRPH)
Graphite is a rock solid company you can trust, right? WRONG!
The pumpers of course, would argue otherwise. Theyll tell you how you need to be trading this stock as its up on volume over the past few days and the company reported encouraging early data on graphite projects.
Whatever that means
But as you know, the pumpers are always paid to say nice things- including SquawkBox Stocks, James Connelly, Buzz Stocks, and AimHighProfits. While they all were paid varying amounts, AimHighProfits picked up $25,000 for their part- not to be outdone by James Connelly who collected $35,000.
So what about the company?
Now, at first glance, youd look at the balance sheet and say- Brian, theyre doing great they have over $300,000 in cash!
But what you need to look at in this case, is how they got the cash
For starters, GRPH lost $227,396 for the first nine months of 2012. And if a company is losing money how did they get so much cash- especially when they had $70 as of December 2011?
Well, I think you know where Im heading on this
GRPH issued shares of stock for $750,000 to investors- boosting the companys total outstanding share count to more than 28.7 million! Thats up from just 2.5 million shares in 2009.
Graphite is in risk of vanishing since theyre bringing in $0 revenue and burning through big cash piles theyve even amassed a $1.5 million accumulated deficit!
Now, I always believe a picture is worth a thousand words- and it helps investors making a smart decision. Take a peek at this chart
Clearly were looking at a big pump as the stock shot to $1 a share- and then has just sold off and spiked, sold off and spiked. Thats a classic chart for a pumped stock- and one you should avoid!
Other Penny Stocks Being Pumped This Week
TERX – MonsterStockPicks was paid $3,000
QFOR – Bullseye Stox was paid $15,000
A final word (and warning).
This is just one of the potential pump and dumps we’ve seen lately.
Remember, theres 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,
Brian Walker
Category: Pump & Dump Alerts
