Over the years scumbag stock promoters have given penny stocks a bad reputation, everyone knows somebody who has been burned badly in the past. Innocent people have lost thousands after investing a large chunk of their savings into a “hot stock tip” advertised as the next Microsoft. Although promoters are unethical they provide educated traders with an opportunity to profit from these pump and dump scams. With that being said the vast majority are crap with a terrible track record. Fast forward to 2017, only a handful of them have the ability to attract enough volume and liquidity to make it worthwhile to buy or short sell a play.
The landscape has changed significantly with big-time promoters getting shut-down by the SEC, these included Awesome Penny Stocks, Best Damn Penny Stocks and Victory Mark Corp. Three or four years ago it wasn’t difficult to make money buying pre-promo’s by discovering details of upcoming promo’s through researching via Google. APS and PennyPic had dozens of “sister websites” that released their picks early to subscribers before blasting it out their main email list of around 100,000 people, e.g. Pennystockgains.com was a sister site to APS. John Babikian was the mastermind behind APS, it is reported he made close to $100 million with his scheme. He lavish lifestyle attracted a tonne of media attention, owning dozens of properties throughout the world and driving a Bugatti. John Babikian ended up owing $15 million in unpaid taxes, he fled Canada and is believed to hiding out in either Russia or the UAE.
List of Promoters to follow for 2017
- ElitePennyStock.com – in my opinion is currently the best promoter currently, it has ties to AwesomePennyStocks.
- Stocktips.com – In the past has generated good volume and buying power in their promo’s, although their last pump COLV was a massive disappointment.
- Wall Street Revelator
Use a yopmail as a disposable email address to sign up for their alerts so you can track them. It’s useful to be aware they separate their email lists and don’t email their subscribers all at once. If they have a list of 10,000 emails they might divide it up into 4 lists of 2,500.
Useful Websites for Research
Stockpromoters.com – This is the ultimate website to track what promoters currently are the most effective and how many newsletter are touting a certain ticker symbol.
EquityFeed.com – Powerful trading software that can used to scan 1000’s of symbols to find OTC stocks with abnormal volume. (Look at the bottom of the page to see the filters I use).
Goodetrades.com – This is a great site run by Michael Goode and provides an abundance of research on pump and dumps.
Promotionstocksecrets.com – Premium service to learn inside out about how promotion works, free articles on the site are educational. I no longer
I also use SEMrush.com to track how much websites are spending on advertising campaigns on Google. This is paid SEO tool which estimates how much a site is spending on PPC (Pay Per Click) campaigns on Google and Yahoo. They bid on search terms / keywords relevant to their website, like “stocks to buy”, this could keyword could cost $1-$4 a click, the higher you bid the higher you appear on the ads section. E.g. TradeProdigy for July has received an estimated 10,422 visitors at a cost of $51,306 and overall are bidding on 3,374 keywords. ($51,306 / 10,422 = $4.92) This means TradeProdigy are paying nearly $5 per visitor, that is a significant amount to spend and results in high quality website traffic which means more people signing up to their alerts. StockoftheWeek.net for July got 17,497 visitors at of cost of $6,214. (17,497 / 6,214 = $2.81) In theory TradeProdigy should be the more effective promoter as they’re paying $2 more per click and received 4210 more visitors.
Here’s a screenshot of an example.
My Equity Feed Filter
(1) Select markets: “OTCBB” & “Pinksheets”
(2) Stock Types: Regular Securities” and “New Issue”
(3) Price: From “$0.01” to “$1.50”;
(4) Volume: From “$5,000” to “$5,000,000”;
(5) Liquidity Movement Action: “Share volume” is “greater” than “2.5” times “20-day volume avg”
The above settings cast a very wide net. For better search results, try minimum “$50,000” $volume and/or “10” times the 20-day volume avg.
With the rise of social media platforms like Facebook, Instagram and Twitter there’s more opportunity for promoters to reach a mass audience with very little cost. Instagram in particular is becoming extremely popular to tout stocks, I’ve noticed Instagram models with millions of followers, getting paid to to advertise marijuana companies. With all the hype around the legislation of marijuana dozens of people lost money on that alert. This means in the coming years, the SEC will have to be more vigilant monitoring the internet for micro-cap fraud to protect the public from more scams.