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.

Share Your Thoughts

ShowHide Comments (89)
    1. Julian
      Sep 10 2013, 04:43:50 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
      Actually given but so far, no returns. But nothing has been proven to me yet.

      • Sam Johnson
        Sep 10 2013, 10:53:58 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.

    2. Julian
      Sep 10 2013, 04:44:15 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.

    3. 13 |
      Marilyn Scott
      Sep 10 2013, 05:06:31 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

    4. M J
      Sep 10 2013, 05:16:05 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.

    5. Sam Johnson
      Sep 10 2013, 05:23:42 pm

      You can review our track record here:

      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

        • Sam Johnson
          Sep 10 2013, 11:37:17 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 trades on XUII it was still a big winner.

          We updated our marketing within 2 weeks of taking that loss in order to not mis-represent our track record. The disclaimer now also mentions that we’ve lost trades but every pick we’ve had as a whole has generated a profit if you traded each trade rec for that stock.

          I hope that makes sense.

          I am very upset at myself for forcing the last last XUII trade that didn’t workout. We had to trade XUII for 3 months this summer when during the rest of the season we normally get 1 pick per month.

    6. HistoricVehicle
      Sep 10 2013, 05:28:31 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 now, that promoter and many others are preparing to start marketing their next stock. And I’m getting ready to play it. I want you to try it out along with me…” Maybe just a coincidence…

      BTW, make no mistake, Market Authority is in the stock promotion business; albeit dormant for awhile (re: IRYS) – “Millionaire Media, LLC and Market Authority, LLC, have been compensated one hundred thousand dollars for the distribution of this particular email.”

      • Sam Johnson
        Sep 10 2013, 10:59:59 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 realized wait – we can tell the picks even before any of them mail, because of insider buying creating a volume spike that’s gigantic in the OTC world.

        So now we’re able to project the pick hours before any email goes out from any list.

        Most of our clientel are more than happy to pay $997 for the experience we bring, I myself have bought atleast $50,000+ worth of books/courses/advisories in the stock trading space.

        Now, it’s a mistake to think we are in cohoots with awesomepennystocks. I would be living on a private island offshore if I did. They are extremely rich and not a single person we know in the “investor relations” game actually knows who they are.

        http://www.pumpanddumps.com has an interesting article about who some of the “minions” may be and iv’e heard half a dozen people say they know someone who knows them, but the truth is they are extremely secretive.

        We do rent our mailing list for IR revenue but its too little guys who’s picks are no where near the quality of awesomepennystocks and who’s stocks we’d never endorse with passive income trader. Our rate is $25,000 per mailing and it is always full disclaimed and mailed as a 3rd party advertisement.

    7. Benny
      Sep 10 2013, 05:34:59 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.

      • J.
        Sep 29 2013, 07:48:55 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.
        Sep 29 2013, 07:49:10 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.

    8. Ron Homan
      Sep 10 2013, 05:56:16 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
        Sep 10 2013, 06:17:54 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
          Sep 10 2013, 08:18:58 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
            Sep 10 2013, 09:36:28 pm

            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
            Sep 10 2013, 10:50:09 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
              Sep 10 2013, 11:19:49 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
              Sep 11 2013, 08:23:13 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
        Sep 10 2013, 11:04:28 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
        legal risk. There are a few publishers out there who have the balls
        to publish a newsletter based on their personal trading but it gets
        into the realms of front running your customers and we’re just not
        willing to take that risk.

        So we do not trade or own stocks in any stocks we promote.

    9. Steven Kalodner
      Sep 10 2013, 06:13:36 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
        Sep 10 2013, 11:40:30 pm

        Quality over quantity.

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

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

    10. buen someritano
      Sep 10 2013, 06:43:00 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, dirty, pump-n-dump , paid promotions going on, I see a real need for a promoter watchdog service that identifies the truly honest, upstanding, successful, promoters out there with the largest subscriber base, and also calls out the ones who are just pumping and dumping or just yanking “facts” out of thin air, because they are paid to do so. I know most think there is no such thing as an honest promoter, but I have seen several on youtube who are doing it for free and just giving it away. They show their losses and successes with equal focus. They show their research and rationale and acknowledge the risks they can see. They review the day’s market actions and acknowledge their mistakes. They aren’t pigeon-holed to one or a few stocks or a particular sector. They aren’t trying to sell me anything either. Those folks deserve to be recognized and profit from what they are doing. There will always be risk. We know that, but it is the promoters who are just down to earth and honest and thorough with their research ,advice, successes, and failures, that, I believe, deserve to be known by all and listened to.
      If we were to see the rise of promoter watchdogs, it would be a real incentive for promoters to really work hard for the benefit of their subscribers, and not solely for a paying customer or their own wallet. If a promoter were to offer sound advice and a third-party-verified track record of a solid success rate, the subscribers would flock to them and the customers would seek them out, because they are aware of the level of trust the public has for them. I know I’d give them more attention than any other promoters who were just out there yelling from the hill. Where a new customer may wish to hire a promoter, the promoter would do the research on the company and give an honest review of the potential for that company, be it good or bad.
      Their page would have 3 sections…..researched recommendations, unknown mover observations, and hired potentials.
      Just be honest and real, for cryin out loud. You’ll gain huge popularity if you do.
      ….and another thing…..$200 for a newsletter or report??? Get real.
      I think there’s somewhere in the Bible that says,”beware of those selling information”, but I’m no holy roller.
      Confucius said,”A merchant will grow more wealthy, more quickly, by selling 100 people something for 1 coin, rather than 1 person something for 100 coins.
      Sell a newsletter for $1 and you’ll sell THOUSANDS of them. Sell them them for $200 and you’ll be lucky to sell just one.
      Many promoters think we are idiots with more money than sense, I think.
      I would ask the GumShoe to consider a page on their site identifying the best promoters out there, with some sort of verification of proof of their success/failure rate.
      Maybe a promoter ratings and user feedback data-base-styled page??
      Rank them ALL and make the list quickly referenced. Divide them into groups….longs, options, micros, etc.
      I’m sure the good promoters out there would benefit from it ,too.
      That would be dandy.
      I think the GumShoe is going places and will be the premiere promoter watchdog all traders will be turning to. Talk about a great advertising platform! Perhaps give the service away to readers and charge the promoters for membership in the site or “certification”. If a promoter is willing to pay to be verified, that’s as good of an indication as any trader needs to see who’s on the up-n-up and who isn’t.
      Lovin the GumShoe!
      Keep up the great work.

        • Sam Johnson
          Sep 10 2013, 11:41:15 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.

    11. Fred Mackey
      Sep 10 2013, 07:26:52 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
        Sep 10 2013, 11:06:31 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.

    12. Slick Rick
      Sep 10 2013, 09:20:16 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?

    13. PJG
      Sep 10 2013, 09:26:31 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
        Sep 10 2013, 11:42:36 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

        • 3984 |
          Travis Johnson, Stock Gumshoe
          Sep 11 2013, 12:32:17 am

          To clarify, we don’t review products — we review marketing and try to explain hyped up promotions. We don’t accept free trials because most of our articles are about figuring out “secret” teaser picks and explaining those picks or strategies — it’s not sporting to decipher a teaser pitch if you already know the answer, and its not fair to reveal picks if you’ve agreed with the publisher not to do so.

    14. Bob
      Sep 10 2013, 09:34:48 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.
      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 my money back and needless to say, I didn’t get it. I strongly recommend you AVOID this group. I have more to say about them, and may add it later. Save your money, stay away from Market Authority.

      • Bob
        Sep 10 2013, 10:04:01 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 much greater. This is PROOF he is lying to you:
        From the desk of Jason Cox
        Market Authority CEO, Passive Income Trader Strategist
        For: Passive Income Trader Tuesday, August 06, 2013
        How to make up our losses on XUII as quickly as possible
        This is the first loss (2 losses actually) we’ve taken in Passive Income Trader and I know it really hurts to take a loss like this.
        On the first alert to buy at .35 we’re looking at a 37.14% loss and on the second buy alert at .26 were looking at a 15.38% potential loss.

      • Sam Johnson
        Sep 10 2013, 11:08:05 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

        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
          Sep 10 2013, 11:16:02 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
            Sep 10 2013, 11:44:00 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!

            • 3984 |
              Travis Johnson, Stock Gumshoe
              Sep 11 2013, 12:36:59 am

              Glad someone thinks we’re expensive 🙂 … but to clarify, we do have a broker who sells the ads in our email newsletter (and I see that PIT has advertised in that slot), but we do not rent or loan or trade our email list, we send only our own email newsletter to our subscribers.

    15. Cutting
      Sep 10 2013, 10:09:37 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 10k to buy in as the stock they alerts wildly fluctuates and you want to get out as soon as it hits your profit target. Their initial target is 30% so if you put in about 10k then it would be a worth while with the risk associated.
      It is not for the faint of heart and don’t fall for the sales pitch as they are still holding back on the next pitch for some reason and I don’t feel like watching the grass grow or the paint dry.

      • Sam Johnson
        Sep 10 2013, 11:09:46 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.

    16. Sam Johnson
      Sep 10 2013, 10:50:40 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

      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 for a profit.

      We do this by subscribing to lots of email lists that they control,
      many of which go out before their main brand name mails and by
      watching volume levels spike on OTC stocks.

      The formula for running the service is not complex but its our best
      selling, lowest refund rate, greatest # of testimonials program we’ve
      had in 5 years of business.

      You could very well figure it out yourselves and save the $997 fee,
      but for most of our subscribers, they are happy to pay for the
      insights we have after watching this promoter for the past 2 years.

      We also have an advanced program that you can join after you
      join the first service that sells for $10,000 where we day trade these
      promotions all the way to the top and get involved in lesser powerful
      stock promoters.

      Like stock mister is one of our favorite stock promoters to scalp,
      but its 2-3 minute scalp instead of a 2-3 hour scalp.

      Penny Stocks are dangerous, volatile but very fun to trade and if you
      get good at it the upside can be very rewarding. If you’re a slow old fart,
      who waits until an alert has already gone 20% up against our alert price,
      then ignore the fact that people are about to sell when you buy, or you
      ignore sell advice all together, you’re bound to end up losing money.

      We do our best to teach you the in’s and out’s of penny stocks and deliver
      the greatest return with the least risk possible.

    17. vivian lewis
      Sep 10 2013, 11:02:43 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 back. Not the investor relations firm if he fails to get the share up; not the mark who finally figures out that the stock picks don’t work and demands the promised refund; and not the the newsletter writer if it is not being boosted after all by the paid interviews and ads. I know a California newsletter writer who called himself the Mad Hedge Fund Trader who was victimized by Jason and warned me off dealing with him. I suspect Jason is himself the mystery writer.

      • Sam Johnson
        Sep 10 2013, 11:21:42 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 we couldn’t get his product to sell anymore. I have no idea why but just one day our marketing stopped working. He got all angry that our sales dropped and that was the end of that. His program has great returns though and I highly endorse it. Although, he if anyone is guilty of quoting prices, that nobody can get.

        Vivian, is someone who also worked with Market Authority and if you are interested in investing internationally she has one of the best services in the game. We did not have near the luck selling her program as we did the Mad Hedge Fund Trader (Which we called macro millioniare) but perhaps the bitterness of her post alludes to the poor sales we brought her program. Although, Market Authority did spend well over $70,000 attempting to sell it so if anyone took a hit on her product is was Market Authority and not her.

        I guess people just are not excited about investing internationally.

        She is the real deal though and I can attest that she indeed has made several investors multi-millionaires of the years with her picks – we have them on tape and copies of their brokerage accounts.

        I’m flattered that you all think we have a relationship with AwesomePennyStocks, but I can ensure you that we don’t. These guys are so rich/big that they don’t need people like us to promote their stocks.

        Our picks are based on a stock having little/no volume the previous day then suddenly trading 1-3M/shares per minute.

        The outstanding shares should be in the 250-500M range, there are a few lawyers and transfer agents that they are known to use and this is how we predict their picks before the masses receive the alerts.

        Look, you can do this on your own, but we’ve been doing it for 2 years now and our customers appreciate being able to be lazy and let us tell them exactly how we trade our model portfolio.

        Finally, who is “Sam Johnson”.

        Sam Johnson is the tech guy for passive income trader.
        Jason Cox, is the “strategist” and CEO of market authority.

        Both names are at the bottom of all alerts and it is 2 completely
        different people putting this service together for you.

    18. Sam Johnson
      Sep 10 2013, 11:27:11 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 into our product,
      but there’s no reason you can’t see this works with your own two eyes
      for free just by reading this post.

      That goes for you too Vivian!

    19. Bob
      Sep 11 2013, 07:21:01 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
      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

      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.

    20. Bob
      Sep 11 2013, 09:39:11 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 un-altered message says below, they went Long.

      So, is that a good investment? Would you like to Buy at $2.55 and sell at $1.25? Yikes! Is it a heck of a lot better investment advice if you stop-lossed out at $1.90? SO, Do you really want to pay this guy to give you this kind of advice? You could do better throwing darts at the newspaper, and you know it! (Market Authority June 3 Message Follows)

      From the desk of Sam Johnson
      Passive Income Trader
      Monday, June 03, 2013
      Bonus Trade Alert Update
      Market Authority’s owner and trading team have been in developing several trading strategies that are based on the same concepts as Passive Income Trader.
      One of these such systems involves trading mortgage companies like Fannie Mae – which is one of the top traded OTCBB stocks today, averaging 49M+ shares/day right now.
      Today we alerted the following bonus alert. (Which is not a normal Passive Income Trader alert.)
      •BUY: FNMA at 2.55
      •Profit Target: 3.57
      •Stop Loss: 1.90
      The stock market has had incredible run ups every Tuesday in 2013 and the owner of Market Authority felt it was important to get this bonus alert out to members today when FNMA’s large gap opening and subsequent small pull back triggered this systems buy signal.
      If you look at the chart up above you’ll see why this trade alert could potentially bring our members a 40% profit, it’s been having fast run ups in the near past and we believe it will happen again soon.

    21. Sam Johnson
      Sep 11 2013, 10:03:27 am


      “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 Til Cancel sell order at .35 in place since Monday. I was not filled when the price touched .35 briefly on Thursday am; I revised to sell @ .33 after the Trade Alert to sell if we hadn’t been filled at .35. Profit of 16.6% after commissions.


      “Made about $300 so far on GOFF.
      Sold 60% of my shares, still have 40% hoping for more.
      Thanks Sam


      “This was a good trade. I bought 10,000 shares on 3/18 at $2,790 and sold them three days later for $3,300 a gain of $510 or 18%.

      This was my first trade based on your recommendation. I should have purchase 20,000 but I was worried about the volume.



      “Just joined the service this weekend and placed the trade with small amount of capital (1K) to test the waters and make sure that I can trade with my current broker. In at 0.285 but did not make the 25% trigger at 0.355, out at 0.335 for the 17% profit. Very encouraged and will be interested to ask more questions at tomorrow’s webinar.

      I just signed up on Monday of this week. Places my first trade on GOFF at $.32 and sold on the alert the following day at $.335. Not a huge return but not bad in less than 2 days. So far so good!

      I’m a new member and missed the original call to get in GOFF but when Sam said to still get in I did on March 19 at .3080 and then this morning(3/13) I saw it was having a real hard time hitting .35 so I got out at .3495 for a 13% gain and was very happy. I’m looking for it to retrace a little bit more before I get back in. Thanks”

      “In at 0.2815 for 20.000 # and out at 0.335 or $ 1,000 profit. I’m thirsty for more.”

      “Bought 20,000 shs GOFF at .28, sold at .335.
      $1100 in 3 days is GREAT..Thanks!”

      “Booked 17% profit”

      “On monday morning when the first alert came out around 8.30 am I put in a limit order at .29 as suggested and got filled in right away. The following daily alerts kept me in good spirits. Then when the sell alert came in on thursday morning I changed my previous limit order from .35 to .335. however the price kept dropping befre I could get filled in. So rather than risking a crash I followed the price down and managed to sell at .30 for a profit of 1 cent. A 3.5% profit may not be as great as the 17% others may have got but my capital is safe and am ready for the next trade.”

      “What a fantastic way to trade. I have had success with the two previous trades but made a mistake on GOFF. I got in at 0.2798 and put a sell order on at 0.35. Unfortunately the order was for the day, and not good till cancelled. !!! I still made12.5% !!! Maybe worth a word of caution to idiots like me.

      Thanks again.

      Mike W.”

      “I’m a new member as of 3/20/2013 and I bought GOFF on the second go-around at .32. I am currently up $401 on 10000 shares. Thank you. I look forward to a long and rewarding relationship.


      “i haven’t traded with passive income due to issues i was having with td ameritrade. those are all resolved and i traded GOFF and got in at .281 and hit my 20 % profit trade. i like to play it a little safer than shooting for 25%. i get alot of emails claiming that they have the next secret to trading that very few know of( like no one has heard of selling puts). but honestly, this is revolutionary. it has worked everytime i have used it, and this is the next big thing. thanks”

      “Sam – thanks so much for your great service. I was able to pay for my subscription on my first trade with you and still pocket over $500.00. I am very excited about your service and all of your upcoming alerts and bonus alerts. Thanks so much!


      “Dean G.: Nice, how much did you make with XUII?
      Bret: about $20k!
      Bret: Yup, it was nice. I can’t believe what a tear XUII is on the last few days. But I’m very reluctant to enter again at this price level.”

      “Dean G.: How did you do with the last XUII trade?
      MArtin: I made about 12% I jumped out too early
      MArtin: I bought at .389 and sold at .4289
      MArtin: It was my first time using the program so I””m Happy
      Dean G.: How many shares did you get?
      MArtin: 14,000
      Dean G: Great trade Martin!”

      “IN AT .3658 OUT AT .4545 WITH 10,000 SHARES.” Gerald W.

      William H: Hello, Dean: I am a new subscriber to Passive Income Trader and recently conducted my first (successful) trade in XUII with a 59% positive margin. I purchased 6,000 shares
      It did work out though. The price did go back up to .525 and it did trigger on the way up at .5269 or so 30 minutes to stock Market closing. I made a hefty 44% profit on this trade. 3200.00+ Thanks for any help you can give. Tom D


      • Bob
        Sep 11 2013, 11:25:18 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 more examples of your mismanagment and bloated statements. If I had not paid for the bad advice, I would not complain. So, Ok, feel free to refund my Trial Membership fee, and I’ll go away. All the examples I gave are true and I have provided your own statements from your newsletter to back them up. I AM a subscriber to Stock Gumshoe and was asked to provide my experince with your company. I strongly reccomend it be AVOIDED.

      Sep 11 2013, 10:20:09 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.

    23. Bob
      Sep 12 2013, 12:51:46 pm

      If you want to check it out yourself, their latest pick went public today.
      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 for PWEI now lets see how it does.

      • M J
        Sep 12 2013, 07:15:14 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.



    24. 32
      Cathy Kandravi
      Sep 14 2013, 04:18:06 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, I think the irregulars would not mind I would not, but that is your T&M ( time and material ) + the thinkolater and I am happy it is not a cost plus job so just keep it up and we are satisfied on this end. But I would not mind a grand father loop hole for the long time members, either way I will stay. All I can really say is thanks for the integrity and honesty that you put out, I have been around for a while and your still here coming in loud and clear without the traditional badmouth that goes through the market, and your open door policy is cool and very effective . Keep it up and I will keep learning and enjoying, THANKS to you and your whole team.

    25. J.
      Sep 17 2013, 02:32:53 am

      Just quoting. Seems contradictory…what do you all say?
      Passive Income Trader: PWEI re-entry instructions
      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 while its on the way back up.

      Everything is still going great for PWEI and we’re still looking to reach profit targets potentially today or tomorrow.

    26. Bob
      Sep 17 2013, 03:45:59 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 long time member of Stock Gumshoe, I bought the trial of Market Authority, did not like it and was not given my money back. I’m sharing with you information sent to me by Market Authority – without alteration so you can judge these clowns for yourself. INFORMATION FOLLOWS:

      From the desk of Jason Cox
      Market Authority CEO, Passive Income Trader Strategist
      For: Passive Income Trader
      Tuesday, September 17, 2013
      PWEI Update: The Good and Bad News.
      The bad news is that PWEI has been suspended for trading until
      October 1st and we are not sure how this will affect the price of the stock. Many members are worried that the shares will be almost worthless, however, my experience tells me that we should be able to get out for 1/2 of their value or better.
      I will be giving you explicit instructions on when and how we exit this position in our model portfolio. Rushing to sell it the second the trading commences may not be the smartest strategy.
      More on this later.

    27. Bob
      Sep 18 2013, 12:03:01 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.

    28. James William
      Sep 23 2013, 07:33:41 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.

    29. Jill Smith
      Sep 23 2013, 02:15:29 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 same stock.

      They started with the advertisement of no loses and you can see the trades. However, the last trade I saw was not a winner. But they are still saying no losses. But they could have gone back in that stock and made some money and keep with the no loses. However, when I asked for my money back they started with a little game. I did
      get my money back but I think a lot had to do with my c.c. support
      They are still advertising no loses. That was in May that I left, so don’t know.
      I believe a publisher who publishes the pump and dump magazines puts, this out. It’s not for me, but it is creative.

    30. Bob
      Sep 30 2013, 11:46:31 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 their advice below (Scroll down). They say the stock will dive, and if you don’t get the price you want, then lower it until you get the sale. Good Luck! Every other Schmuck who bought into this Market Authority’s ‘Pump & Dump’ will be doing the same thing.

      Of their last four picks this is the third loser! Fannie Mae went down in flames. ARTH bit the bag. Now you have a ring-side seat to see PWEI get flushed down the bowl. Their big winner this fall? PCWT made about 6 to 8% which would not come close to the losses you took should you have played their others picks- especially if you paid the $400 to $900 to get their advice.
      Also, they will NOT give you your money back when you ask for it.
      Their Message Follows: —————————————————————-

      From the desk of Jason Cox
      Market Authority CEO, Passive Income Trader Strategist
      For: Passive Income Trader
      Monday, September 30, 2013
      How to sell your PWEI position tomorrow morning:
      PWEI will commence trading tomorrow morning.
      There is a good chance that it will have a sharp decline at the open making it difficult to sell and then a bounce back upwards after the selloff is over.
      Without having been in this exact situation we are recommending that members sell tomorrow morning using limit orders that are a few cents below the bid price.
      If you are not filled quickly then lower your asking price until you are closed out of the position.
      There is a chance that you’ll have to call your broker to sell your shares rather than be able to sell it electronically, the brokers at Schwab and Ameritrade have stated that they will not know until tomorrow morning.
      We’re very sorry this happened with PWEI and it’s the first time in three years of trading and watching this stock promoter that is has ever happened.

    31. Bob
      Sep 30 2013, 11:54:56 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
        Oct 1 2013, 11:04:07 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 trused them are out a lot of money. Their picks suck. Stay away from these clowns and tell you friends to do so too.
        This is a cautionary tale from someone who made the mistake of giving them money!

    32. 3984 |
      Travis Johnson, Stock Gumshoe
      Oct 1 2013, 11:21:29 am

      Sounds like things have been pretty ugly — the idea that you can consistently get 1,000 subscribers in and out of promoted penny stocks at anything like decent prices is, frankly, laughable … and really, if you’re not the scammer, it’s hard to reliably profit from scams. Maybe you could do it with a couple hundred small traders … but then, of course, these ticker symbols are still empty trading vessels — they aren’t real companies, so there’s nothing there once the promotion stops. PWEI, whatever it is, is doubtless not worth a half a cent just like it’s not worth 9.5 cents, there is no “there” there.

      Probably all such stocks should be halted by the trading regulators and we could get rid of the pump and dump stuff entirely, but that seems unlikely to happen.

    33. Bob
      Oct 22 2013, 08:52:37 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 Turkeys!
      Trade Alert: CACL
      CACL (Crown Alliance Capital) is our new stock pick.
      The upside on today’s pick could be far greater than what were used to with other Passive Income Trader picks.
      We expect potential profits ranging from 50-200% intra day today depending on how long our members decide to hold onto their positions.
      Because this is a paid advertisement we are not able to issue a direct sell alert you will have to decide when to buy and sell at your own risk.
      There is the potential to lose your full investment capital so only trade with money you can afford to lose.
      Market Authority expects to be paid up to $250,000 on this advertisement. The full advertisement for this pick will be released shortly before the market opens to PIT members, all of Market Authority’s lists and other publishers this advertiser has hired to bring shareholder awareness to CACL.

      • 3984 |
        Travis Johnson, Stock Gumshoe
        Oct 22 2013, 11:39:26 am

        Ah, in previous pitches they were claiming no relation to the pumpers (which would make it really hard to successfully pick which promoted stocks to trade, and when to buy and sell), but if they’re also doing the promotion themselves and being paid to promote the company you’d think it would be more successful for at least some of their “subscribers” … even as it’s even more ethically challenged. Though as I noted in my article above, it seems almost mathematically impossible, given my assumptions (which could be wrong), to get more than a couple hundred people in and out of these kinds of pump-and-dump trades with any kind of regularity, and they claim to have well over 1,000 subscribers.

        We get wrapped up in the impersonal casino of Wall Street sometimes, and I don’t want to be preachy (and we have run ads from this publisher and from many others who probably do ethically questionable things, either indirectly or directly), but it’s worth remembering that if you’re trying to profit from these kinds of pump-and-dump promoted stocks what you’re essentially saying is, “I hope some dope really gets scammed here.” Some people are comfortable with that, thinking that folks who make foolish choices and buy promoted stocks deserve what they’re getting, and some aren’t comfortable with it. And some find out too late that they, in fact, were the dope being scammed.

        That’s not intended as a personal criticism of you, Bob, or of anyone else, I am far from being perfect or “without sin” and I’ve heard similar experiences from many folks who didn’t share them publicly here. I really appreciate your sharing your experience to give us all a better picture of what’s happening, and I understand the appeal of the idea of this service — at least, back when it seemed like they were just trying to ride the coattails of promoters for a few minutes and not get too greedy. I didn’t think it would work very well, but I can see the appeal of profiting from those promoters without getting your hands dirty.

        CACL, bu the way, is a fairly large company by promoter standards, market cap $80 million, but it may itself be a scam or have accounting issues according to the press release I saw today (never heard of them before, though life settlements are very controversial) — here’s the PR: http://media.bloomberg.com/bb/avfile/rvCTm7ZbIi7g

    34. Bob
      Oct 22 2013, 09:40:12 am

      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!

    35. John
      Oct 27 2013, 06:49:29 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?

    36. Brian Wu
      Oct 31 2013, 03:05:42 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.

    37. john
      Nov 3 2013, 09:34:14 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 let that provide guidance when i should take that first big cut.
      the frosting on the cake is the high price of the newsletter as a bonus! what a deal!
      my approach, i watch stocks with options covered by a large number of analysts. when they project solid earnings, good upside potential but little downside risk, i buy deep in the money calls (with little premium) about six months out. many times a 20% stock price increase generates a 100% gain. and if the stock goes down, and some will, you get the option premium as you approach the spot to cushion your loss.

    38. Bob
      Nov 15 2013, 09:16:46 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 have a lot at stake on this pick and are excited to release it to you – exactly at 9:30 EST.
      To get the pick delivered via text message please follow these instructions:
      •United States: Text the word “early” to 88588
      •International: Text the word “early1” to 2065528975
      All the best,
      The Team at Market Auhority

    39. Bob
      Nov 15 2013, 09:59:03 am

      Ok, here is your big profit sports fans. The stock they are pumping :
      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!

    40. Bob
      Nov 15 2013, 02:28:04 pm

      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.

    41. John
      Nov 16 2013, 12:26:11 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?

    42. fishmon58
      Nov 16 2013, 02:06:42 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.

    43. Sam
      Nov 21 2013, 05:01:31 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 PWEI – a “company” with ZERO cash. Since that debacle, they’ve started issuing tons of paid promotion announcements – worthless static that anyone can get for free. For their next trick, they’ve started issuing LOTS of buy alerts – as many as four a day (as opposed to the once-a-month referred to in the sales pitch), and ALL have performed abysmally. This service, which looks great on paper, is in full panic mode, is NOTHING like what was advertised, and is a $997 SCAM. I surmise that all they are doing is using the traders they’ve duped to create enough liquidity for the promotion insiders to take their profits and leave the P.I.T. buyers holding worthless junk. Oh, and did they give me my refund? Hell no. RUN AWAY AS FAST AS YOU CAN.

    44. vivian lewis
      Nov 21 2013, 05:52:46 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 picks than I lose on. Oddly enough he never says nasty things about me despite my trying to tell you all the awful truth about him.
      In a nutshell, from the start, he has collected investor relations fees for promoting stocks. He has invested in them or taken promotion fees in shares. Then he has offered subscribers to his service a chance to buy these shares as he and his IR client have been selling.
      It is like a 3-card Monty with Jason getting money 3 ways and there being no win card among the three. He is worse than a card sharp on Times Square. Do not subscribe or you can kiss the fee charged goodbye. Please don’t fail to figure this one out. I hope at some point out SEC will get after this lot. Their claim to have secret information on pumped up stocks would be illegal if they had to get it from the IR gang; if they generate it with IR fees they charge themselves they are required to include it in their buy tips and they do not. That is a clear violation of securities law not covered by the First Amendment which lets you write an objective stock opinion and get it wrong.

    45. Sam Dlugach
      Nov 25 2013, 07:04:38 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
        Nov 26 2013, 06:20:19 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….

    46. Jim
      Dec 11 2013, 10:02:27 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
        Mar 27 2014, 08:52:32 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 news for their subscribers. Incredible. Fortunately, I was still within the trial period. I immediately requested a refund. I also sent them a lengthy, none to subtle opinion about their turn-about. They did in fact honor the refund request and I was refunded the full amount I paid. That they would continue to sell this “service” at a premium is amazing to me. Imagine charging money to your “customers” to promote a stock you are already being paid to promote by some slimy stock promotion pump and dump organization. Talk about conspiracy!

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