This lesson is painful as Valmie Resources bag holders learn that a high priced scam is still a scam
May 28, 2015: No penny stock scam has been pushed harder over the last few weeks than Valmie Resources, Inc. (VMRI). Since the campaign to dump stock onto a gullible public began on April 7, 2015, the share price has dropped over 78% from its now seemingly lofty launch price of $2.95. Absent a reverse split, it would be difficult to imagine shares ever revisiting those valuations again.
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| VMRI Chart Since April 7th Launch of Pump and Dump Campaign |
The dramatic discounting in VMRI's share price is not difficult to comprehend. According to the company's own financials, the latest being for the period ended February 28, 2015, there is nothing in the way of assets, revenues or operations. No wonder then, insiders, in order to divest themselves of worthless paper, employed the services of most if not all of the mainstream penny stock newsletters, many of them several times. We've received over 150 hype pieces since the campaign began. Many of these promoters acted shamelessly in the course of doing their job.
By way of example we look at professional bullshitter, Beacon Equity, one of several newsletters published by Action Media Holdings. Beacon first hyped shares of VMRI back on April 13 when they were still trading at over 3 bucks per share.
$139K worth of stock traded hands on April 13 and shares closed down a penny from the day's opening trade.
By the time Beacon Equity and Action Media pumped VMRI once more on May 28, the stock had fallen 72% on a relentless dumping of stock. Over 100 hype pieces had been written by other promotional newsletters since the first Beacon Equity effort.
Our favorite quote from the May 27 piece is "But I didn't see an entry point until the VMRI chart started flashing oversold:" Huh? Then why did Beacon Equity et al. push these shares at over 3 bucks if this was the "entry point" and thus subjecting their subscribers to 72% losses?
By way of example we look at professional bullshitter, Beacon Equity, one of several newsletters published by Action Media Holdings. Beacon first hyped shares of VMRI back on April 13 when they were still trading at over 3 bucks per share.
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| April 13 Promotional Newletter |
$139K worth of stock traded hands on April 13 and shares closed down a penny from the day's opening trade.
By the time Beacon Equity and Action Media pumped VMRI once more on May 28, the stock had fallen 72% on a relentless dumping of stock. Over 100 hype pieces had been written by other promotional newsletters since the first Beacon Equity effort.
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| May 27 Promotion Newsletter |
Our favorite quote from the May 27 piece is "But I didn't see an entry point until the VMRI chart started flashing oversold:" Huh? Then why did Beacon Equity et al. push these shares at over 3 bucks if this was the "entry point" and thus subjecting their subscribers to 72% losses?
Then, just 90 minutes into the trading day, Beacon Equity changes its mind:
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| Second May 27 Email From Beacon Equity |
With this email Beacon Equity abandons their subscribers, leaving them high and dry. An inevitable sell off accelerates and makes us wonder, what happened to the so-called entry point? And what about those that Beacon dragooned into 3 buck stock? Who the heck would ever buy stock based on another recommendation from these guys? And what about the people who paid for the promotion? The disclaimer on the day's first email claimed $90,000 in compensation and now Beacon Equity says "Don't bother"???? They must have one pissed off customer.
So who are the culprits for this fleecing of the public? Well back in December of 2014, when VMRI started trading, 100% of the stock was held by insiders. And since few shares traded prior to the launching of the current Pump & Dump campaign, it does not exactly require a class in deductive reasoning to figure out whom the beneficiaries of the scheme are.
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| VMRI Abbreviated Past Performances Chart <click to enlarge> |