That said, welcome to Pump and Dump Friday, where every week we identify a few of the 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 are todays disasters waiting to happen:
Cal-Bay International (CBYI)
My inbox was crammed with emails this week from Hot Stock Profits (HSP), Alpha Penny Stock, and Moving Pennies all touting CBYI. All were paid for their efforts with HSP collecting $10,000.
In our weekly Pump And Dump reviews, weve brought you some diverse companies. You know, a little bit of this, a little bit of that. Most of the time its companies grasping at straws for a way to make any money
This time is no different! Meet Cal-Bay, real estate development and green energy solutions developer. Now theres a combo you dont see every day. Their real estate division is putting together a network of realtors and brokers, as well as looking to find property to directly invest in.
Commercial? Residential? Who knows what theyre focused on!
The Green Division is even more non-specific. CBYI is actively pursuing waste liquids to energy, and recycling. Boy does that cover quite a bit. And the entire company has all of three people, including 2 full-time employees.
How exactly do you run two divisions with just three people?
Its easy when you had $2,434 in revenue for 2011! Better still, CBYI has over $36 million in accumulated deficit on the books as of December 2011. That tells me this company just keeps rolling over loss after loss into the company stock.
But losses from what?
Well this company has been around since 12/08/1998. Check out how the company has been jumping from business to business since then
I pulled this straight from their latest annual report. And as you can see, were looking at a company with a clear identity problem. Thats not something you should be investing in.
Need another reason to avoid shares of CBYI?
Well, the company stopped reporting to the SEC back in 2007. And if Cal-Bay cant even afford to continue filling with the SEC, Id hold out no hope for any real return on your investment!
TeleFix Communications (TLFX)
Theres a parade of shabby pump and dump stocks this week and TLFX is the next in line.
My favorite pumper, Darth Trader (I get such a kick out of that name), hauled in a sweet $80,000 for their touting services. And what did they tell you about TeleFix?
Just the usual technical mumbo jumbo.
This is a scorcher that has torn up the charts…even as the market was falling hard.
Thats quite the imagination and they used scorcher, torn, and hard all in the same sentence. Wow is that even technical analysis? Not in my book!
Now, much like our last stock, CBYI TLFX hasnt filed anything with the SEC since 2003! And that was to terminate their SEC registration. Quality stuff here.
Before anyone jumps on me for this, were exposing a pump and dump on a woman-owned company. Now, let me just say Im all for women owning and running successful businesses. However, I just have this crazy thing about them actually being profitable
For example, as of December 2011, TLFX amassed $0 revenue. Better still, the company racked up $249,799 in operating losses for the year. Net income tallied -$549,621 not what Id call successful.
Whats more, Telefix needs a cash fix themselves. Theyre only holding a whopping $363 in cash! Thats enough to cover my electric bill for the month
Needless to say, with all the red flags I found with TLFX, dont waste your greenbacks buying this stock!
Great Wall Builders (GWBU)
This almost puts a smile on my face. Ok, ok it does put a smile on my face.
Watching my arch nemesis fall flat on their face is rewarding. Finally, it looks like the pumping power of the almighty and powerful Centro Azteca S.A. might be fading out.
What do I mean?
Well, we highlighted GWBU last week and told you the same group that successfully caused massive spikes in NSRS, SNPK, and ABOT were trying to do the same with GWBU. I pointed out that unlike the aforementioned stocks, Great Wall Builders was already trading over $1.
Why does that matter?
Well, for starters, the potential sheep wont cough up the coin to trade a mega-cap penny stock like GWBU. How can they buy 100,000 shares and get a triple if its trading at a $1? That would mean theyd have to have more than $1,000 in their day trading account.
Thats not going to happen
I think the pumpers are wasting their time on this stock. Theyve made the chart look so scary already, it looks like the Great Wall itself! Take a peek
Sure, they popped the stock over 50% for all of what a whole day or two? Id be willing to bet the potential sheep were too afraid of the huge downside to put up their cash. I mean, the stock was trading at just $0.20 mere weeks ago.
If thats the case, the pumpers may fail on this one. The bottom line, if they cant muster a better attack at these levels, look out below!
A final word (and warning).
These are just a few 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,
Category: Pump & Dump Alerts