written by reader Is Well Power (WPWR) a “game changing breakthrough”

By Anonymous Questions, February 24, 2014

Got this tip from Mike Statler Stock Tips letter, which has a promo video here: http://www.stocktips.com/special-1/

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Travis Johnson, Stock Gumshoe
February 24, 2014 9:32 am

Nope.

OK, I should qualify that: I have no idea what the company does. But the ad’s disclaimer clearly says it’s a paid promotion, with shareholders paying Mike Statler and/or his publisher $4.1 million to publicize the stock. Shareholders, not the company itself — so this is not a case of a sometimes ethically reasonable marketing campaign by a company that’s trying to raise its profile so it can raise more money or improve the business, this has all indications of being a simple pump-and-dump campaign designed to drive up the share price of a stock so that folks who bought up millions of shares at low prices before the promotion can sell them to … well, to suckers. Hopefully not like you and me.

The company is essentially a shell, from what I see of the basic profile on Yahoo Finance. Probably if you look through their SEC filings there’s something in their assets like a license to a technology or a right to some territory or something … but in every similar case of a pump and dump I’ve seen, and there are hundreds of big ones every year, whatever it is that they’re calling an asset turns out to be nothing that anyone else wants or that will ever lead to profits. I’ve never regretted not spending time researching the companies behind these promoted stocks — life is too short, these are manipulated securities that we’d all be wiser to avoid entirely.

I get asked about similar “companies” almost every day, and forwarded dozens of these kinds of ads, and I suppose it’s possible that over the last decade there’s been one or two that turned out to be real companies that eventually turned into something viable. But I doubt it.

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burnerjack
Member
May 10, 2014 11:17 pm

After observing the price progression of so many “miracle breakthrough…. must get in now… next google…blah, blah…” stocks, I wonder if one should just take these promotions as a clue to sell these promoted stocks short to buy quality stocks with the proceeds. None, not even one have I seen go up so a short squeeze seems doubtful.
Anyone try this? If so, how did it work out?

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