What is “Passive Income Trader?”

By Travis Johnson, Stock Gumshoe, September 10, 2013

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No big stock “reveal” today, but perhaps our blatheration will be of some interest anyway.

We’ve had a number of readers write in asking about a heavily promoted trading service called Passive Income Trader — this is a service that’s been around for a year or two, as far as I can tell, and they’ve even placed ads on our email newsletter a couple times, but I’ve never listened to the presentation before.

So today, I jumped in to check it out a bit. Reluctantly, because this is one of those ads that doesn’t come with a handy dandy transcript … so I had to listen to the whole blessed thing to see what details they shared.

I don’t often cover trading services that are pitching a strategy, particularly a rapid-trading strategy, because I’m not an active trader and tend to default to my bias for long-term investing when I look at these quick-hit services. But here goes …

The pitch is from a guy called Sam Johnson, who is apparently the trader who “discovered” this trading strategy for profiting from “parabolic moves” in individual microcap stocks. I presume this is a pseudonym, since unlike most of the Market Authority (that’s the publisher) newsletter personalities he shares no picture (they do have some real and experienced newsletter writers, FYI, they publish letters from Charles Mizrahi and Ian Cooper, both of whom I’ve covered in the past in their work with other publishers).

Sam starts out by building a perfectly reasonable case for the existence of parabolic moves in different markets (tech stocks in 1999, gold in 1979, housing in 2006, etc.), and then saying that he can help you profit from these kinds of parabolic moves.

He does that by grossly simplifying the situation (also pretty common in hyperbole-filled teaser pitches), and by making the connection that parabolic moves of large sectors over months and years are similar to spikes in individual microcap stocks over a matter of days:

“Parabolic moves are caused by the exact same thing: a story …

“Parabolic moves in assets happen when large groups of investors buy into the story”

He then makes comparisons to the tech boom of the late 1990s, when every cab driver was also a day trader, and to the housing bubble when you were starting to wonder whether you should move to Miami and start “flipping” condos for quick profits — he could have gone all the way back to the tulip mania or the gold rush, I guess, and there is certainly a tendency in human nature that creates bubbles of “I don’t want to miss out.” I won’t argue with the existence of story-driven bubbles, whether large or small, we see them every day.

But this is essentially a rapid trading service we’re talking about — the “passive” part comes from the fact that they issue roughly one trade alert per month, you put in your buy and immediately also put in your sell order for the target price, and you’re done. Assuming the stock gets to your price and is sold. So how do you profit from a parabolic move in a little tiny stock?

“You get rich by getting into assets BEFORE the stampeding crowd … and by getting out of them at the start or middle of the parabolic move that comes right before the inevitable crash. That’s why what I’m about to show you works so well.”

“I found something that happens every month or so that creates a big market story in a small sector. This event causes quick, bubble-burst cycles to happen like clockwork. So I just invest in the start of a parabolic move, sell before it peaks and walk away with 22.6 percent profit on trade after trade. And totally avoid the bust at the end.”

This thing that happens “every month or so” is a catalyst that drives a specific stock — but it’s not a catalyst that generally has anything to do with the stock itself.

“I found a source of stocks that have gone up in price 94 percent of the time when a very specific catalyst event triggers… when this catalyst event hit, it caused more than half of these stocks to shoot up more than 100 percent.”

“… this catalyst triggers on one stock every month … you could see it trigger on the specific stock within minutes of it happening, while the price jump happens over the course of several days, even weeks.”

“What’s the catalyst? Stock promotions… they are PR and marketing campaigns designed to get investors to buy and hold into a stock (something you should never do with these stocks, as you’re about to see).

“There are hundreds of stock promoters, but only a couple of ‘big fish’ who consistently drive a stock price through the roof with their promotions” …

“Investors who fall for these promotions think they’re going to cash in on the ‘next great Shale oil find’ or ‘the next Groupon’ or whatever. That creates a smaller version of those parabolic moves we saw in the U.S. housing market: gold in the 1980s and the NASDAQ during the tech boom….”

So, yes this Passive Income Trader is a service that either has a relationship with a stock promoter and gets in on these promotions early or before the promotion begins, or simply latches on, remora-like, when a promotion happens and rides part of the likely stock move. I don’t know which — it’s not clear from the ad or in their disclaimers and I haven’t asked them. The “before the stampeding crowd” part implies that they have some insider knowledge of when those moves will happen, but these promotion campaigns don’t go out in just a single mailing at a single second.

And the part of the service that makes it seem somewhat feasible is the fact that they’re not trying to predict the whole curve of a promoted stock’s response to promotion, just the first bit of it. They say they focus on getting in early and getting out quickly — with a stated target of 25% gains on each trade.

There are some worthwhile things in the presentation, like this quote:

“… you never, ever want to hold a stock from a stock promotion for the long term”

That’s certainly true. I’ve literally never seen a single stock promotion that featured a company with any compelling fundamental reason to own it — many of them don’t even have a business at all, they’re just a catchy name, a story, and a ticker symbol, and usually an investor can realize that just by checking their revenue line (usually zero, or laughably small) or reading the disclaimer to see how much someone was paid to drive the shares up. That’s why I don’t often write about these promoted stocks, though I do trot out the occasional “please don’t buy this” article to remind new investors about how worthless the stocks really are.

And the ad goes on to turn it from a warning into a tease:

“The profit opportunity is in the first couple of days. You just want to skim the cream off the top. I set my profit target at just 25 percent so that I can hit my target in the first day or so and not get caught when the bubble bursts at the end.”

He also says that if you try to hang on for the 100-300% gains that many people shoot for when they chase a stock promotion, “you’ll end up losing a lot of money when the stock tanks at the end of the promotion.”

Which is also true — I’ve never seen a stock promotion that didn’t fizzle back out and return the stock to somewhere near where it was trading before it was promoted … or even much lower, in some cases. The companies are generally worthless, after all, and exist only to be manipulated — eventually the weight of that worthlessness brings the stock back down once the manipulators stop pushing it higher.

And he says that the volume is also very high in the first days of a stock promotion — good enough to get in and out, before volume dies off — in his words, “the average volume on the first day of promotion has been about 60 million shares.”

That’s supposed to give some reassurance — letting you know that although this is a microcap, it trades more shares on these targeted days than stocks like GM or Wells Fargo. Which is sometimes true, but what’s important isn’t really share volume, it’s the trading volume in dollar terms — promoted stocks are often in the 5-50 cent neighborhood, so even small individual investors might easily be tossing around 100,000 share positions. Their published track record of stocks they’ve traded includes XUII, for example (the company name is Xumanii, but it’s not being traded because of anything to do with the company so it’s better to just think of it as a ticker), and Xumanii did indeed have two big spurts of stock promotion in May and July this year — the first one gut up to almost 200 million shares traded as it spiked from 10 cents to 40 cents, the second peaked at just over 60 million as it went from 20 or 30 cents to almost 70 cents.

That’s actually pretty remarkable trading volume for a microcap on those two spiking volume days (on most other days during the ebb and flow of that stock promotion it traded between 3-5 million shares), but it’s not all that much money. That’s trading volume of about $12 million on the wildly-out-of-the-norm peak days — average trading volume in GM shares might be $750 million in an average day. Of course, there are no institutional investors screwing around with a worthless pumped stock like XUII, so it’s all individual investors being fleeced and promoters trying to drive up the share price. And folks like Passive Income Trader subscribers trying to grab at a taste of it along the way.

They’re not the only ones, to be sure — there are plenty of investors out there who think they’ve got the world outsmarted, and they think that even though they know these companies are crap they will be nimble enough to get in and out unscathed as the stock bounces around … there’s a bit of a cottage industry in tracking stock promotions, which likely serves the promoters quite well in keeping volume up — there may be as many “promotion traders” who think they’re in the know as there are actual rubes being lined up to buy the junk “for real.”

If none of this makes sense to you, here’s the basic primer: Stock promotions are press campaigns and ad campaigns that tout a specific stock as a big winner, usually because of some breakthrough technology or land holding. Some of them are really advertising by companies themselves, trying to drum up investor interest to drive the stock higher so they can raise more money, but often stock promotions are paid for and run by traders who are unrelated to the target company (at least legally) who are just doing a “pump and dump” campaign — this is the modern day equivalent of the boiler room operation that tries to drive up a stock so that the folks who accumulated a big position earlier on the cheap can sell to the new crop of eager buyers who have stars in their eyes. These ads can almost always be distinguished from newsletter teaser promos because stock promotions are selling the stock and almost always blare the name and ticker in large letters — newsletter ads toss out sneaky hints about real stocks to try to sell their newsletter, stock promotions try to convince you to buy a junk stock. They’re legal, for the most part, as long as they tell you in the fine print that it’s all an ad and that they were paid to promote the stock — which is fine with them, because they know nobody ever reads the fine print.

And though Passive Income Trader says they have studied three years of stock promotion data to come up with their model for how to trade these little manipulated microcaps, it’s hard to be terribly confident that anyone other than the person paying for the stock promotion campaign knows when it will start — and, as importantly, how it will fluctuate and when it will stop. Unlike the crowd mania-driven bubbles of the tech stock market or the gold market or the Dutch tulip frenzy, this isn’t the wild bubble behavior of crowds we’re talking about — microcap stock promotion is usually the targeted scalping of naive individual investors and it is much more controlled, discrete and manipulated than the “madness of crowds” that creates bubbles. Yes, they both have their root in the human love for a trend and a hot story that you’re afraid of missing, but that’s about all they have in common.

I can accept that as long as Passive Income Trader doesn’t have more than a few hundred subscribers it would theoretically be possible to scalp quick returns on the early spurt of a stock promotion — but only if they really are able to catch the largest promotions, and to catch them just as (or before) they have their huge volume days.

If they had, say 500 subscribers and each subscriber wagered $2,500 in hopes of a $500 gain on the day their trade alert comes out, that would be volume of about 2.5 million shares if we’re talking about XUII stock (for example) — so on a spiking day, XUII could handle it if the promoters have conned enough people into buying 60 million shares worth, there would be enough volume to soak up a few million shares of selling in the middle of the action — but on a normal day of five million shares in the middle of the promotion, that would mean the Passive Income Trader folks would be most of the volume … meaning there wouldn’t be someone there to sell when they wanted to all buy at once, nor would there be someone to buy when they all wanted to sell at once. So for even just 500 subscribers, you can imagine that it would be tough to get the “hypothetical” returns that look possible from the movement of a stock — even if the stock really has exactly the move they anticipate, there would have to be a lot of shares traded to make it possible for real-money accounts to actually get buys and sells on their positions to book actual profits. That’s true of any newsletter or service that recommends illiquid penny stock or options trades, the real results can never match the chart, but it’s probably doubly true of wildly distorted promoted stocks.

Anyone — literally — could do this if they knew which promoters were the big ones, what stocks they had been hired to promote, and which stock would have the biggest promotional push in any given week or month. The mechanics of it are reasonable, albeit of perhaps questionable ethics if you’re “in the know,” and you can see how it would work as long as you’re not trying to drag a couple thousand traders along with you and blowing the trading volume out of whack.

But the important thing is knowing which promotions will indeed be big movers and which will fizzle or never get very big or move up before you have a chance to recommend them. How do they learn about these promoted stocks?

“… we’re able to do all of this with about one trade a month, which is the frequency of stock promotions from the top promoter who actually moves stocks.”

Does that mean they’re actually working with that promoter? Or does it just mean that they know which promoter is the best and can jump on his emails the second they start running, and alert their subscribers? I don’t know.

Unless the Passive Income folks are getting their ideas from the promoter before the promotion, there’s no way they can do this on a schedule — they have to wait until they see the right stock promotion, then write up the trade recommendation, maybe run it by their lawyers, and send it out to their subscribers.

Or, of course, they could be the stock promoters themselves or have a close relationship with them — that could make this a really stable and much more predictable business: taking the promotion money, blasting their email lists, and also getting additional income by telling some subscribers beforehand and telling them to sell along the way. I don’t know if that’s what they do, but I do know that some of this publisher’s newsletter/trading service authors have endorsed junk promoted stocks that are in Passive Income Trader’s track record (Chuck Hughes, who helms a service for Market Authority, was also paid to promote ECAU), so there is at least a potential trail of connection between this trading service and the companies doing the promotions. I have not researched exactly which promotions were paid for by whom or scoured the disclaimers beyond that. Mostly because I don’t care — I don’t want to have anything to do with promoted stocks in my portfolio, I would probably not be nimble enough to get in and out at the right times if I tried to do it … and if I were successful, I’d feel slimy for being an active part of a stock promotion. But that’s just me, and I may be naive (or just boring).

And no, I can’t tell you what the hot new stock promotions are going to be — and I won’t tell you not to try to do this kind of wild day trading — you’re all grown-ups, and wild swings of microcap stocks are undoubtedly fun and feel like a trip to the casino. There are a few folks who have very publicly gotten rich from similar strategies, like Timothy Sykes (who tries to play it both ways, tracking the promotion up and then shorting it on the way down), but it’s not investing. I prefer to study companies, to research stocks, to try to profit by choosing good companies that can grow and generate cash flow over time and see their stock price rise because of that fundamental business performance, and save my gambling for the blackjack table and the occasional options speculation. But I also almost rarely make 20% gains in a single day.

So … would you like to be a little cog in the wheel of the stock promotion cycle? Think it’s worth trying to scalp promotions to get quick gains when you notice them in your email box? Ever try out Passive Income Trader or think this strategy will work, with or without being connected to the stock promoters themselves? Let us know with a comment below.


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89 Comments on "What is “Passive Income Trader?”"

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Julian
Guest
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Julian
September 10, 2013 4:43 pm

Thank you for a thorough look into this service. I am a subscriber for 2 weeks now and every day i have been getting an email saying something like we will give you a hot ticker symbol very soon. And last week a stock
Was
Actually given but so far, no returns. But nothing has been proven to me yet.

Sam Johnson
Guest
0
September 10, 2013 10:53 pm

Hi Julian, yes the summer months they usually take off. As you know we expect a trade alert any day now. They were having email issues last week and it was delayed. This is the longest wait we’ve ever had for a pick sense we began the service.

Julian
Guest
0
Julian
September 10, 2013 4:44 pm

Thank you for a thorough look into this service. I am a subscriber for 2 weeks now and every day i have been getting an email saying something like we will give you a hot ticker symbol very soon. And last week a stock symbol was acually given but so far, no returns. But nothing has been proven to me yet.

bfchmv
Irregular
13
September 10, 2013 5:06 pm

At risk of changing the subject, I am very curious about the Byron King’s 5th Dominion of War, his 7 companies for cyber security, and the Black Budget investment he is teasing in one combined e-mail. Would you please turn on your amazing thinkolator and explain all of these? Thanks in advance. Marilyn

hallmike
Member
0
hallmike
September 10, 2013 5:16 pm

Good article – thanks, Travis. I happened to get emails for this article and a stock promotion at the same time, and I did read the disclaimer. My favorite fine print line was “This communication is never to be used as the basis of making investment decisions, and is for entertainment purposes only.” Made me laugh. I added the promoted stock to my watch list just to see what happens for my own amusement.

Sam Johnson
Guest
0
September 10, 2013 10:54 pm

As a publisher you have to have a disclaimer of this nature… damned lawyers!

Sam Johnson
Guest
0
September 10, 2013 5:23 pm

You can review our track record here:
https://docs.google.com/spreadsheet/ccc?key=0Ann9eR5KEqCkdFN4bEFMV0FyTjNHcXlfcG80WnN4dVE#gid=6

We have no insider knowledge we simply watch volume level spikes to get in before the main email campaigns go on. There is enough experience to tell which are worth trading and which are not and the summer months tend to go 3 months with only 1 pick while the other months can average 1 pick per month.

Feel free to email our ceo any questions about the program at jason @ marketauthority.com

Bob
Guest
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Bob
September 10, 2013 9:39 pm

Oh my!
If you have to tell a lie, tell a BIG lie. No losses Sam?

Sam Johnson
Guest
0
September 10, 2013 11:37 pm
Hi Bob, we took our first losses this summer, attempting to trade XUII too many times while we waited for a new pick. It’s rough being a publisher waiting for a new pick with almost 1000 people joining from a big advertising campaign. The excel sheet above shows those losses and we’ve sense updated our marketing. See the tab that shows position increases. Instead of claiming we’ve had no losing trades we now claim that we’ve had no overall losses on a single stock. So XUII has had a losing trade but overall when you look at all the prior… Read more »
HistoricVehicle
Guest
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HistoricVehicle
September 10, 2013 5:28 pm
Easy, Sam Johnson is selling a strategy that buys AwesomePennyStocks (APS) promotions on day one and sells for profit. No need to be a part of this “system”, all you need is a phony email address, and little effort to discover who works with APS. Funny, this Sam Johnson guy popped up just after Tim Sykes stopped promoting his Penny Stock Millionaire program with Market Authority. The Penny Stock Millionaire program at one point touted “I told you about one stock promoter who drove big rallies in 16 out 17 stocks in the last 16 months or so…” and “Right… Read more »
Sam Johnson
Guest
0
September 10, 2013 10:59 pm
We actually figured out this strategy after reviewing a document Tim Sykes had that reviewed many many stock promoters. However, he hadn’t nailed down that awesomepennystocks was the ONLY promoter worth following consistently. There’s around 7 different mailing lists they control and in the old days, when we weren’t as good at trading these, we would wait for awesomepennystocks to simply mail out the pick. Then we found that many of their sister newsletters with similiar names would mail a few hours early. So we started giving out alerts based on the sister sites like “secretpennystocks” and “superpennystocks”. Then, we… Read more »
HighSociety
Guest
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HighSociety
September 11, 2013 2:49 pm

“and not a single person we know in the “investor relations” game actually knows who they are” cheerio! http://investorshub.advfn.com/boards/read_msg.aspx?message_id=90585310

Ryan Healy
Guest
0
September 11, 2013 5:49 pm

Wow, those guys who operate Awesome Penny Stocks live really close to me!

HighSociety
Guest
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HighSociety
September 13, 2013 2:28 pm

Maybe you should hit them up, they might use you for their next Hard Mailer campaign. LOL!

Benny
Guest
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Benny
September 10, 2013 5:34 pm

Hey Julian please keep us posted. I planned to subscribe to the service but would be interested in your feedback before I pull the trigger.

jnksak
Irregular
0
September 10, 2013 6:14 pm

Anyone interested in trying a partnership with the service? Email me at jnksak@gmail.com

J.
Guest
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J.
September 29, 2013 7:48 pm

Yeah hey Benny I was on pins and needles the whole time and realized that the only thing worth all that stress was making big money. But therein lies the rub: you must put on big bucks to make any money. I was in the red for 2 days with PCWT and finally got out in a moment of black vowing is never do it again. Incidentally -you can’t even buy PCWT now at least on my trading site since they say it is a highly suspicious rock.

J.
Guest
0
J.
September 29, 2013 7:49 pm

Yeah hey Benny I was on pins and needles the whole time and realized that the only thing worth all that stress was making big money. But therein lies the rub: you must put on big bucks to make any money. I was in the red for 2 days with PCWT and finally got out in a moment of black vowing never do it again. Incidentally -you can’t even buy PCWT now at least on my trading site since they say it is a highly suspicious rock.

Ron Homan
Guest
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Ron Homan
September 10, 2013 5:56 pm

I always ask one question; if this method is so sure fire, why is the proponent not so wealthy that he does not need my money for his newsletter?

theaccusersgift
Guest
0
theaccusersgift
September 10, 2013 6:17 pm

This is the correct question to ask.
If this is a limited market arbitrage, the promoter must feel he can get more money from a newsletter somehow than actually trading the arbitrage himself and pyramiding the profits.
My guess the promoter is somehow betting that if he can compile a mailing list of investors interested in penny stocks, that he can make money selling that list to other promoters that are touting (e.g. pumping and dumping) penny stocks.

boneafide
Guest
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boneafide
September 10, 2013 8:18 pm

not sure if this is the correct question. newsletter writers do it for reasons other than to scam unwary folks – desire to share knowledge, ego. power, fame, hobby, an urge to write about their interest in investments/speculations, a desire to help others, etc.
as an example, doug casey has, over decades, identified hundreds, if not thousands, of winners (losers too), and i am sure doug does not need my subscription money to survive.

theaccusersgift
Guest
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theaccusersgift
September 10, 2013 9:36 pm

Hmmm.
Well, I’ve thought of another reason.
Suppose it is illegal to “pump and dump”. Or suppose a promoter has
ethical objections to participate in a legal “pump and dump”.
A way to make money of knowledge of an upcoming illegal or unethical “pump
and dump” would be to start a newsletter of upcoming “pump and dumps”.
That way, you are not engaging in the illegal or unethical activity, merely “advertising”
an upcoming illegal or unethical activity for those with no scruples to participate.

Catalog 33
Guest
0
Catalog 33
September 10, 2013 10:50 pm

Talk about naive ! This is a money game – if the tout sheet write has such a
bulletproof system he wouldn’t be selling subscirptions.

steven kalodner
Guest
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steven kalodner
September 10, 2013 11:19 pm

yes he would. He makes almost 1.5 million selling subscriptions and has no risk of capital. this is a great business plan.

Catalog 33
Guest
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Catalog 33
September 11, 2013 8:23 pm

Like I say,if the system (not the subscriptions) made serious money, the
inventor would be racking in cash from the trades, not the tout
sheet buyers.

Sam Johnson
Guest
0
September 10, 2013 11:04 pm
Ron! This is a great question. We made a great profit quickly right before we started selling this service and had a big debate about starting a hedge fund or selling the newsletters as it’s the most incredible trading opportunity i’ve seen in 5 years of being in the newsletter business. At the end of the day we decided that this trading strategy may not last forever, so why not help investors make profits while it does work and have them as life-time customers for our core business. Upon selling the service we stopped trading the stocks due to the… Read more »
jnksak
Irregular
0
September 10, 2013 6:13 pm

This seems interesting but they want a lot of money for a program that only made 5 trades this year. They want $497 per quarter I believe. If this is truely working they should price it accordingly for our members.

Sam Johnson
Guest
0
September 10, 2013 11:40 pm

Quality over quantity.

Everyone else in the penny stock advisory world
has a hot trigger finger and is firing shots left and
right.

The beauty of our product is that it DOES NOT
trade often.

buensomeritano
Member
0
buensomeritano
September 10, 2013 6:43 pm
I turned to StockGumShoe as soon as this promo hit my inbox this morning. Way to be on the ball, yall! I can see a real, honest use for a newsletter that identifies the biggest promoters with the best success/prediction rates and volume of subscribers, which would be verified by a third, disinterested party. I’d subscribe to that newsletter long before buying a random promoter’s $200 newsletter touting a specific stock(s) or strategy. I never take any claim of success as truth from the person trying to sell me something based on that alleged success. With as much low down,… Read more »
RiverRon
Guest
0
RiverRon
September 10, 2013 9:12 pm

Take a look at pumpanddumps.com

Sam Johnson
Guest
0
September 10, 2013 11:41 pm

Very good site. They are calling PVEN as the next awesomepennystock pick.

Our advanced program has a 5% position in PVEN currently. Im not sure if it is the pick or not some no name promoters mailed it last week which makes me think its not.

Fred Mackey
Guest
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Fred Mackey
September 10, 2013 7:26 pm

This type of “system” seems very much like the old chain letter. There are people who are in early or start the letter and make money, but there are people down the road who have to be left holding the bag and are screwed. Maybe it’s the con man’s credo, you can’t cheat an honest man that should be considered here. Also wasn’t there something about how often a sucker is born?

Sam Johnson
Guest
0
September 10, 2013 11:06 pm

Our strategy is to buy the day the stock promotion starts
and sell a few days later.

We miss out on the huge run ups that have happened quite
often with this promoter but it helps us miss out on the crashes
that always happen.

We are going to have to change our system to be more nimble
though as we have over 1500 members.

Most likely we’ll be doing 2 quicker trades instead of 1 larger
trade moving forward in our program.

Arlis Tyner
Guest
0
Arlis Tyner
September 11, 2013 6:39 pm

Yeah. And the same guy said “Never wise-up a chump.”

Slick Rick
Guest
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Slick Rick
September 10, 2013 9:20 pm
This article brings to mind the old adage, “A Fool And His Money Are Soon Parted!” If you are interested in a stock on one of the major exchangers and not some OTCBB Pump And Dump check out PGRX ! After a reverse split PGRX is coming on STRONG and definitely has room to run! Just look here folks http://finviz.com/quote.ashx?t=pgrx&ty=c&ta=1&p=d With a razor thin float PGRX is a more viable bet over ECAU any day of the week. I own it , and plan to make some big bucks , “El Rapido” $80 could be possible?
PJG
Guest
0
PJG
September 10, 2013 9:26 pm

GumShoe…you have sold me. You’re as good as they get! Once I get the coin I’m going to join (full fledge). I don’t seem to trust any information, promotions or newsletters out there but I must say, for a free look into what Gumshoe has to offer, I’m sold. You guys are credible…the real deal in my eyes. I always read some kind of “scam” as I would put it, and seem to look to Gumshoe for the real answers. Thanks. PJG

Sam Johnson
Guest
0
September 10, 2013 11:42 pm

I agree but he reviewed our product without even asking for a trial.

That’s not very good research in my opinion.

I’ve emailed him to test out the product himself and he said he is
too busy to do that but that he may have some readers who want
to test it out.

So we’ve told him to send us a few over who are willing to do the
actual research and do a proper write up after getting their hands
dirty.

Bob
Guest
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Bob
September 10, 2013 9:34 pm
I saw the add for Market Authority last spring. I thought the strategy could work and paid the $400 fee. I can simply say it was the worst decision of my investing career. Here are a few reasons: You cant get “in” for the same price Market Authority says they get in for. and You cant get “out” for the prices they say they got out at. The market for these penny stocks is simply not liquid enough. For the trial period, they may just offer a single stock tip. If its a loser, well too bad. I asked for… Read more »
Bob
Guest
0
Bob
September 10, 2013 10:04 pm
Imagine what an investing genius you could be if you just told people about the VICTORIES you had, and never said anything about the LOSSES? Well, that is exactly the secret to Market Authorities “success”. If you read message 5, from Sam Johnson it claims they have a perfect track record. Please see the info below, this is directly cut & pasted from the newsletter, and clearly shows losses 37% and 15%. Please note it is unlikely that his subscribers were unable to get in as low as he claims to have done, so I suspect most peoples losses were… Read more »
Sam Johnson
Guest
0
September 10, 2013 11:08 pm

We have a more than fair 60 day money back guarantee.

Alot of people joined right before our last 2 picks GOFF and
XUII and then the summer came and the promoter went
silent.

We expect the next pick to hit this week or next it should be
a big one as people have been waiting sense mid-may for their
next stock promotion.

steven kalodner
Guest
0
steven kalodner
September 10, 2013 11:16 pm

If you have 1500 subscribers then you are making over 1.4 million in subscription fees which is alot more than any of us can make. where is the stock gumshoe discount?

Sam Johnson
Guest
0
September 10, 2013 11:44 pm

We spend $1 to make $1.30 then after refunds we
make about 15 cents on the dollar.

Our overhead is about $150,000/month.

We’re building a long term business here nobody
is getting rich overnight.

Stock Gum Shoe is a very expensive mailing list to rent!

Cutting
Guest
0
Cutting
September 10, 2013 10:09 pm
Just out of curiosity, I signed up to a three month trial and cough up $997. After two months and some days I gave up and got my refund. The last one they promote was XUII and there were some mis-timing with the promotions so it was not a real barn burner but if you are savvy enough you can get away with some decent gains. I only threw in about $2500 and made only about a couple of hundred which was nothing to write home about. If you want in on the service be prepared to set aside about… Read more »
Sam Johnson
Guest
0
September 10, 2013 11:09 pm

Yes, its about 1 pick a month and it’s meant for people with $10K to trade per pick to generate income. You should consider re-joining! The summer months are tough/slow for the penny stock world in general. The easier trading starts up in sept-Jan.

We are going to lower that profit target to 10-15% and do 2 trades per pick that are quicker/faster moving forward as our audience has grown considerably.

Sam Johnson
Guest
0
September 10, 2013 10:50 pm
Market Authority certainly is paid to promote stocks, usually about 1 per week. As you’ve read the passive income trading program only alerts 1 pick per month and lately its been 1 pick per 45 days. We are not compensated on the the picks we mail to passive income trader (although I wish we were) the promoter behind the passive income trader picks is offshore, secretive and we have no way of getting in contact with them. We are trying to though. Our strategy is simple: detect their picks as quickly as possible, then get our members in and out… Read more »
vivian lewis
Guest
0
September 10, 2013 11:02 pm
The Hannibal Lector of the newsletter business, Jason Cox of Albuquerque NM is behind this latest bent pitch. Cox is a 20-something marketeer and college dropout who makes his money by selling the same thing to different people. Stock advisories are sold to retail clients looking for a quick buck. The advice is in fact paid for by the companies whose shares are being promoted. And even the advisors, if they are real people with real newsletters, wind up paying young Cox to promote their product. He collects coming and going. And his key tactic is to never pay anyone… Read more »
Sam Johnson
Guest
0
September 10, 2013 11:21 pm
We actually paid the mad hedge fund trader around $450,000 so that’s total bullshit! The mad hedge fund trader is the type of guy you pay $50,000/month to and he steals cookies out of the buffet room during your meeting because he’s such a cheap ass. When he had dinner with Timothy Sykes when the check was about to came he needed to use the bathroom. With that said http://www.madhedgefundtrader.com is a killer product, we enjoyed selling it at market authority, it was our best seller ever and the only reason we stopped working with Mr. John Thomas was because… Read more »
Sam Johnson
Guest
0
September 10, 2013 11:27 pm
Be skeptical of the skeptics guys! You’ll never get anywhere in life with the glass is half empty mindset. You’re best bet is to always evaluate the situation for yourself and make your own decision. I was flabbergasted that no one in the industry was teaching people to simply scalp the start of awesomepennystock promotions. It’s a very simple idea and we’ve mastered how to do it. There’s no reason you can’t subscribe to their free newsletter from reading this thread and test it out on their next pick yourself. If you want to get more advanced – consider looking… Read more »
Bob
Guest
0
Bob
September 11, 2013 7:21 am
Sam, by your own words, you demonstrate what a bad deal you offer- and I made the mistake of buying. If you offer a 60-day trial- anyone who joined after GOFF – had nothing but XUII (a loser despite what you represent) then, that has paid the fee and gotten nothing but a lighter investment portfolio, as they never saw another Pick. OH HEY, Shall I tell them about your stellar advice on Fannie-Mae? Author: Sam Johnson Comment: We have a more than fair 60 day money back guarantee. Alot of people joined right before our last 2 picks GOFF… Read more »
Sam Johnson
Guest
0
September 11, 2013 9:14 am

Hey Bob, well I would love for you to see how your portfolio looks after 1 year of using a program. You are like alot of people I discuss who buy a program, have 1 trade that doesn’t go your way, then quits and jumps to the next program.

Our track record speaks for itself:
https://docs.google.com/spreadsheet/ccc?key=0Ann9eR5KEqCkdFN4bEFMV0FyTjNHcXlfcG80WnN4dVE#gid=0

james johnson
Guest
0
September 11, 2013 8:22 am

What is a “U.S. 801(K) plan”?

Bob
Guest
0
Bob
September 11, 2013 9:39 am
Market Authority cant pick stocks to save their life! See this example. Just for fun, pull up a chart for Fannie Mae (FNMA). No, really, pull up the chart. See how it DIVES in early june? Market Autorirty stated it was BUY at that very moment. (I have included their message below with the date). They had it as a Buy at $2.55 with a target of $3.75; HOWEVER within a day or so it dropped to $1.50, then to $1.25 where in still festers to this day. Ok, it would have been an awesome Short play; BUT as the… Read more »
Sam Johnson
Guest
0
September 11, 2013 10:03 am
LEGAL DISCLAIMER: THIS IS NOT THE AVERAGE RESULT OF OUR CUSTOMERS. MANY HAVE LOST ALL OR GREAT PORTIONS OF THEIR INVESTMENTS. THESE ARE TESTIMONIALS CUSTOMERS HAVE SENT INTO US WITHOUT ANY FORM OF COMPENSATION THAT WE”VE COLLECTED. WE REFRAIN FROM ADVERTISING THEM BECAUSE AS YOUVE SEEN OFTEN TIMES PEOPLE BUY OUR ALERTS VERY LATE THEN IGNORE SELL ADVICE WHICH HAS RESULTED IN LOSSES FOR CERTAIN MEMBERS. “You asked for feedback on our trades. My first PIT trade was GOFF: in on Monday, Mar 18 at .28; out on Thursday, Mar 21, 1:40 pm EDT at .33. I had a Good… Read more »
Bob
Guest
0
Bob
September 11, 2013 11:25 am
Sammy, you crack me up. You respond with more of your advertising hype. Travis asked if any of his Gumshoe subscribers had used Market Authority. I dont think he is interested in your canned shills statements. I can state from experince Market Authority is a disaster. I have been a Gumshoe subscriber for many years. The subscribers here are very savy and enjoy peering through the smoke people like you produce. I doubt a single one of them will follow you on to your site. You said “BUY: FNMA at 2.55” and it immediatly dove to $1.50. I have many… Read more »
HARRY HEIDELBERG
Guest
0
HARRY HEIDELBERG
September 11, 2013 10:20 am

I’m looking for a definition of “Rich Gold Bullion” as opposed to gold bullion. Stansberry is promoting TRUE WEALTH with an article written by Sujuerrud’s brother, Mike who espouses this “Rich Gold Bullion” as the toy of the wealthy.

Guy
Guest
0
September 11, 2013 2:35 pm

Got caught up late in the hype in XUII and lost my shirt and pants -worse than naked options. Live and Learn 🙂

Bob
Guest
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Bob
September 12, 2013 12:51 pm
If you want to check it out yourself, their latest pick went public today. PWEI Jason/Sammy recomend it at a Buy at 0.095 (.085 plus 0.010 to ensure it fills). I have no idea which direction it will go; but you can check and play at home! This Buy suggestion for PWEI came when the stock was already up 30+% – by the time it got to us Market Authority newsletter subscribers. Gee . . . I wonder who bought up those early shares, prior to sending out the email to the subscribers?? Full discloure I have a Long holding… Read more »
hallmike
Member
0
hallmike
September 12, 2013 7:15 pm

Interesting – I ‘played at home’ and the stock topped out right at their Buy recommendation of 0.095 today, then fell back to around 0.085 for the last couple hours of the regular trading day. Then exactly 10 minutes after the markets closed, the price dropped to 0.0601 on a volume of 5 million shares within 2 minutes.

http://www.nasdaq.com/symbol/pwei/after-hours

–MJ

baygreen
Member
32
September 14, 2013 4:18 am
Travis it has been a while since checking in , been busy vacation, travel, family, etc. all that good stuff, like your comment and I have certainly made my share of swing low sweet chariot’s, you still put it on the table for all to see that keeps me here and also get to enjoy the input of all . I do think the hype not from you but how you put perspective is far to lets say realistic , so I would personally think your members/ followers would not mind a keep up with inflation news letter price adjustment,… Read more »
J.
Guest
0
J.
September 17, 2013 2:32 am
Just quoting. Seems contradictory…what do you all say? Passive Income Trader: PWEI re-entry instructions BY EDITOR | SEPTEMBER 16TH | COMMENTARY, TRADE ALERTS If you were stopped out of your PWEI position at breakeven just now – please re-enter once the stock reaches .0925. Many of you likely did not stop out because most members were in for .085 or lower but if you were the price to re-enter will be when the stock reaches .0925 In order to protect our capital we are happy to get out, let any sell off that may happen occur, then get back in… Read more »
Benny
Guest
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Benny
September 17, 2013 9:37 am

Is the above service related to this Manny Backus dude as well?

Bob
Guest
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Bob
September 17, 2013 3:45 pm
OK, Market Authoritys stellar pick PWEI is SUSPENDED from trading. Hope you didn’t have money in it! See message above #27 where they say,”Everything is still going great for PWEI”. I continue to laugh at them! Here is the UPDATE: Now it is supended with investors trapped at least until October. Great place to keep your cash! Yikes! The latest message from the Market Authority Einstien, “Jason/Sammy” (reprinted below) says its not that bad beacuse you may get HALF of your money back! I guess that was the good news! You cant make this stuff up! Full disclosure, I’m a… Read more »
Bob
Guest
0
Bob
September 18, 2013 12:03 pm

Market Authority Tries/Dies again PCWT.
They dropped this one as a buy to subscribers at 1130 today as a buy around $0.188. Play along at home if you wish but be warned, it was already up 110% BEFORE they gave us the buy signal.
So, is there room enough to make out $25% Passive Income when “someone” has already run the price up?
Are we going to profit, really?
Or are we just the latest round of suckers pumping up the price to be burned?
Add it to your watch list and see for your self.

danpreone
Irregular
0
danpreone
September 23, 2013 7:33 am

Bob, Thanks for all the info and the warning to say from market authority. Now, I wonder what the response of Sam Johnson would be to your “bad” experience.

Jill Smith
Guest
0
Jill Smith
September 23, 2013 2:15 pm
I tried this for a very short time. At my age it was not for me. I think it’s fairly clever, but not for everyone. I believe this company is one that publishes those magazines in dump and pump small stocks. while small, they could easily be .50 and above and over $1.00. They put out one stock a month. They keep you apprised when one is coming up and when they give the go to buy, you need to be ready. They also let you know when to sell. And sometimes you will go in and out of the… Read more »
Bob
Guest
0
Bob
September 30, 2013 11:46 pm
The latest from the Smart Guys at “Market Authority” is how to sell (at a loss) all your holdings in PWEI. As you may recall Jason (alias Sammy) said, ”Everything is still going great for PWEI”, then it was declared a suspicious stock and frozen – locking up investors cash for weeks. Great Deal right? Is this where you want your cash – in a stock you can’t sell – cause its frozen by the Feds! – AND Then when you CAN sell it – NO ONE will want it! Great stock pick Boys! SO, I have copied and give… Read more »
Bob
Guest
0
Bob
September 30, 2013 11:54 pm

As a reminder “Market Authority” said this was a BUY at 0.095

So just for fun, pretend you had money in it at that price, and see what you could sell it for tomorrow morning!

(and be glad it is just for pretend!)

Bob
Guest
0
Bob
October 1, 2013 11:04 am
FOLLOW UP on Maket Authorities Epic Fail: PWEI As you saw above, Sammy/Jason got their buyers into PWEI at 0.095 it was then frozen as a suspicious stock by the Feds and is NOW trading at 0.005 Lets see that again: Bought at 0.095 and sold at 0.005 Just like the FNMA stock that epically tanked in June as soon as they put it in for a BUY, this PWEI stock went down in flames so spectacularly that IF they had said it was a SHORT play they would have been much more clever. But they didnt, and those that… Read more »
Bob
Guest
0
Bob
October 22, 2013 8:52 am
This is the latest “Pump and Dump” from the einsteins at Market Authority. It is a blatent, ‘you should buy this even though we have been paid to promote it’ brochure that they give out. Just wanted to share – so you wont be tempted to buy a membership – I wish I had not! BE WARNED See message 34 above. Their last pick went from 0.095 to 0.005. That is a drop! Be glad you didnt have any money in it! If you had $9500 in it, after you sold you would have $500. WORST TRADE EVER! Avoid these… Read more »
Bob
Guest
0
Bob
October 22, 2013 9:40 am

FIRST FOLLOW UP : CACL
I just got the junk mail flyer in my in-box.

So – I get the the SAME flyer they send all all the SUCKERS; the only difference is that I spent $400 for mine! See why I dislike this outfit? AVOID THESE GUYS!

John
Guest
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John
October 27, 2013 6:49 pm

Pardon me, but none of charts of these symbols mentioned in this thread appear to have had a parabolic move or high growth shape: ARTH, CACL, GOFF, PCWT, PWEI, XUII.
The authors wording seems to say that 94% of small cap stocks being promoted will shoot up at least 100%. I was wondering if the author could show where any of his stock picks actually met his own stated performance of 300% or so in about 3 weeks. Yes, I know that some stocks do that, but what percentage of his picks actually do that right after he picked them?

seamles
Irregular
0
October 31, 2013 3:05 am

Thanks Bob for all the great info. I love that stock gumshoe has such a great community. Based on how market authority didn’t do well, do you think the same good for all these stock pickers like Tim Sykes, Jason bond? I saw falcon stocks got good reviews here on stock gumshoe.

john
Guest
0
john
November 3, 2013 9:34 pm
here’s my thought. if i were sam johnson i would buy my shares BEFORE sending out emails to investors. then my investors would to jump in and help drive the price up. i’d take my gain, be it 12.9% or 100% or “whatever”, because my shares were being traded to my investors. no illiquid market for me!!!!! to maximize profits i would sell in increments, a big sale first then smaller increments to try to cash in all the way to the top. i’d go the extra mile and attempt to measure volume metrics after i send my email and… Read more »
Bob
Guest
0
Bob
November 15, 2013 9:16 am
“PASSIVE INCOME” has you pay to get alerts of stocks THEY have been paid to promote. Here is one for this morning. I have included the call info if you want to play along. WARNING: There last 4 picks have been BIG LOSERS! Message Follows: Hot Low-Float Pick Coming Tomorrow Morning Tomorrow morning at the market open we’re releasing a brand new paid advertisement trade alert for a low-float company. As we said yesterday our reputation for delivering quality paid advertisement trade alerts is on the line and urge you to watch this alert tomorrow morning at the open. We… Read more »
Bob
Guest
0
Bob
November 15, 2013 9:59 am

Ok, here is your big profit sports fans. The stock they are pumping :
WTCG
filled 0:930 orders around 64 and now has plummeted to 49. So thats around a 27% LOSS for anyone folowing PASSIVE INCOMES advice. As I have stated before, AVOID these stooges!

Bob
Guest
0
Bob
November 15, 2013 2:28 pm

UPDATE: On PASSIVE INCOMES’s WTCG
WTCG Sold at the open for 0.64
it is now trading at 0.37
This is a LOSS so far of about 42%

See their quote above at message #41where they say,
“our reputation for delivering quality paid advertisement trade alerts is on the line and urge you to watch this alert tomorrow morning at the open.”
I hope you can all see what kind of REPUTATION they deserve by advancing these dog stocks – that – they are being PAID to promote; and ripping off people that PAID THEM for their advice. AVOID these Boneheads.

John
Guest
0
John
November 16, 2013 12:26 pm

I noticed they wont tell you what their stock pick is until it is time to trade.
This gives you ZERO time to do any of your own analysis. They are counting on you to make an uninformed decision. The timing of the release also defies their own stated criteria. They said they wait until heavy volume is seen. but how can they know there will be heavy volume then?

fishmon58
Guest
0
fishmon58
November 16, 2013 2:06 pm

Don’t do it! I paid them the 1K and got the pick and they retracted it. I let it slid until the next pick which was a flop. When I asked for my money back they told me they had a cash flow problem and in lieu of a refund, which I was entitled to as I had the service less than 30 days, they would provide me with two other publications, “Weekend Trader”, which is worthless and “Speed Retirement” which I have hardly heard from. I plan to call on Monday and see where my refund stands.

Sam
Guest
0
Sam
November 21, 2013 5:01 pm
While trying to cancel another Market Authority subscription, I was offered a 60-day trial of the Passive Income Trader service (I’ve since read they pay their phone associates $50 for each customer retained). What a dreadful, regrettable mistake that I agreed. Like Bob, I was seduced by their “100% success” pitch. None of the buy alerts have behaved anything like the ones in the sales video. Their claims of trading volume are complete fiction, and the fact that there is no time to do any research is part of their plan. I lost 99% of my investment on the exchange-halted… Read more »
vivian lewis
Guest
0
November 21, 2013 5:52 pm
I am pretty sure this operation is being run wholly by the now barely adult juvenile delinquent Jason Cox in part because the same spelling errors as he favors appear in Sam Johnson’s alleged notes from happy camper subscribers; and because he loves hiring people like his mother to feature in videos about how much money they have made. At one point he made a video to promote my newsletter which failed to click because my happy campers failed to scream that I am infallible in picking foreign stocks, which of course I am not. I just win on more… Read more »
John
Guest
0
John
November 23, 2013 6:13 am

Sounds like you formed an accurate opinion of Mr Cox during your association Vivian!

samd
Member
0
samd
November 25, 2013 7:04 pm

Log into the P.I.T. website today, and you’ll find that clicking on the “Commentary” link merely takes you back to the homepage (gee, one wonders why), and that clicking on the “Track Record” link gives the follwing results:

GWBU 25.00%
VLNX 25.00%
PRTN 25.00%
TAGG 18.18%
SVEN 25.00%
FARE 25.00%
ECAU 13.10%
SWVI 25.00%
GOFF 17.54%
XUII 25.00%
ARTH 24.77%
PCWT 13.24%
PWEI -94.12%
-94.12% for PWEI is generous, as many investors lost %100, since trading of that ticker was halted by the exchange, and when it was lifted weeks later, one would be extremely lucky to find a buyer. This chart also does not include more recent Buy Alerts, 3 of 4 resulted in losses.

JT
Guest
0
JT
November 26, 2013 6:20 am

There are several losers missing from that list which seem to have been conveniently forgotten, plus the 25% profit is calculated using entry and exit points no-one would have realistically got and doesn’t allow for brokerage charges.

This idiot has given out 11 other “picks” in the last week or so, 10 of which were losers and the lone winner not making much.

But don’t worry he is promising another “monster pick” on December 7….

Jim
Guest
0
Jim
December 11, 2013 10:02 am

Everyone would be best served staying away from young Mr. Cox and his crony, Sam Johnson.

Forget ‘gambling’ in penny stocks in any form or fashion and just invest in ‘real’ companies that pay ‘real’ dividends. Investing is a marathon and not a sprint.

Just my 2 cents for what it is worth.

Cox is a fraud.

John Nelson
Guest
0
John Nelson
March 27, 2014 8:52 pm
I wish I’d read this string a little earlier, I would have offered comment. I subscribed to Passive Income Trader last year precisely because they advertised that they were independent of stock promoters, they did their own research and were not being paid by anyone to promote anything. I believed them (silly me!). They changed the rules in the middle of the game. They sent notice (at least they let us know!) that they would begin promoting stocks they themselves were being paid to promote….can you say “pump and dump?” They tried to make it look like this was wonderful… Read more »
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