Right before today's open, Small Cap Specialists disseminated this same pump piece through all of its newsletters:
Notice the reference to "short squeeze", a common misrepresentation offered by promoters in explanation for the decrease in share price of the ticker they are currently pumping. What they are really doing is deflecting from the fact that the share price is down because the promoter has been hired to create hype and a temporary increase in trading volume so that insiders can dump stock. As we have said time and time again, the need to dump shares is the single reason a stock is ever promoted for payment.
Well 15 minutes after we received the promotional email, TWER announced that it had arranged a deal to eliminate debt by issuing a bunch of convertible preferred stock and enough common stock to nearly double the number of shares last reported as issued and outstanding. That of course sent the share price into the dumpster.
A short time later, Small Cap Specialists was forced to issue the following mea culpa.
This email is full of crap. And it starts with, "two minutes after our initial alert". The initial alert by this promoter on this ticker was four weeks ago, not today. Over that time, the majority of the common shares were likely dumped in anticipation of the coming announcement.
Secondly, there is no "possible dilution". The announcement was clear. Why sugarcoat it? The number of common shares will at least double very quickly.
Finally, this lie:"If we had any idea something like this would happen there is no way we would have covered TowerStream today." What a load of crap. Small Cap Specialists did what it was hired to do. Create a market for the dumping of stock. The promoter was doing the job it was paid for over the last month and the insiders long ago knew that today's announcement would no be received kindly. And the promoter knows that it was hired for this very purpose. It's in the disclaimer.
Small Cap Specialists could give a rat's ass about its subscribers' losses. It cares about the 25 grand it was paid for this ruse. For that money, it would tell its subscribers whatever the client wants and whenever it wants. And the insiders of TWER thank them for their service.