$CHVC just released news that they’ve received their first order for installation of their services in a government education project!!  This is HUGE news and The Dean believes $CHVC has all the pieces in play to do incredible business in China’s VoIP market, and this press release is proof of their potential!!

With $CHVC teaming up with technology giant China Unicom, they have the power to provide and market broadband, VoIP and other services to millions. Since China is exploding in growth, and will have an estimated 70 million VoIP users by 2011, potential subscribers will be more abundant than oil in the Middle East!

The Dean’s Recap of $CHVC‘s Full Press Release today:

BOCA RATON, Fla., July 30 /PRNewswire-FirstCall/ — China Voice Holding Corporation (CHVC) (OTC: CHVC – News), announced today that their China subsidiary, Beijing CandidSoft Technology Co. Ltd. (CandidSoft) has received their first order from China Unicom for CandidSoft’s patented/copyrighted SKY O/A Office Automation with integrated Digital Voice Application under their new agreement previously announced on July 16, 2009. The installation of these services is for a government education project in the County of ChongZuo in Guangxi Province. The government education project calls for China Unicom to completely revamp the communications infrastructure in all education related facilities including installation of high speed Internet connections and SKY O/A to provide telephone services, fax and data service for a complete Unified messaging solution.

CHVC’s President and CEO, Bill Burbank, said, “This installation will enable the sharing of resources and knowledge through an integrated network of services managed by the SKY O/A platform, which provides real-time communication means to facilitate a ‘connected’ teaching and learning environment. We are excited about this new application for our technology and believe that it opens up a whole new market for us. The initial rollout will be for the teaching staff of approximately two thousand; however, China Unicom believes that the project will eventually extend to include students. The financial details and project plan will be confirmed during the month of August with installations projected to take place by mid September.”

The Dean has decided to take a special trip to China during August to film for an upcoming project and to meet with the management team of one very special China stock that meets all 4 criteria to The Dean’s Barely Legal Secrets to Success:

(1) No other promoter has ever mentioned the stock before (very important);
(2) The particular stocks message boards are still dormant;
(3) Its an incredibly sexy story that can sell; and
(4) There is a sudden increase in the stock’s daily trading volume.

This very special undiscovered China stock is very much like a CVS or Walgreens except that they also manufacture their own products. The company has phenomenal 40% profit margins, is expanding and only has a 4 P/E ratio!

Do your homework on $CHVC *NOW* before news of another tremendous government contract drives thousands of investors to this now-undiscovered stock!!

The National Restaurant Association estimates that approximately 45.2 billion take-out orders are placed each year in North America alone. If one extrapolates just a 1% market share as $IBRC’s goal for the North American market, this translates into a potential 452,000,000 orders (transactions) annually!

Now keep in mind this is just the North American market and that $IBRC’s technology has intuitive language capabilities that enables them to translate the language software for international use throughout the world. 
The emerging markets in China and India are red hot and The Dean believes $IBRC is exactly what will be cooking in the stock market- streamlined, scalable technology that has the potential to revolutionize a growing consumer market in a very big way.

And the best part? The company is already generating revenues from their restaurant software and already boasts several respectable customers:

-New Yorker Deli
-Carlyle’s Corporate Catering
-Uncle Wong’s Chinese Cuisine
-Bangkok Thyme
-KC Pit BBQ
-Melton’s App & Tap
-Brookwood Grill
-Scruby’s BBQ & Grill
-PastaMax Café
-Carolyn’s Gourmet Café
-Giuseppi’s Pizzeria
-Village Inn Pizzeria
-Doc Green’s
-Dagwood’s Pizza
-Austin’s Restaurant & Bar
-Kampai
-Thai Palate
-My Friend’s Place

In The Dean’s opinion, the best time to learn about emerging technologies is well before they’re adapted by major restaurants including Ruby Tuesdays (RT), Chipotle (CMG) or some of the brands managed by Brinker International (EAT) including Chili’s and On The Boarder because it only takes one blockbuster partnership to affect the $IBRC stock in a very big way.

Act now before the investing public eats up the entire public float with $IBRC’s restaurant ordering technologies gaining some serious steam.

The Dean is very proud to start teaching all students about $IBRC.

iBrands Corporation ($IBRC) has developed an online ordering software designed specifically for the restaurant industry, a business that rakes in a staggering $600 Billion annually. And that figure is just for North America!

The Dean is excited about $IBRC because it has recently acquired E-Strategic Solutions (ESS), a marketing and services provider involved in online ordering technologies for the restaurant industry. But iBrands Corporation did not stop there, as they also acquired Richard Software Services (RSS), increasing their reach, technical support and potential for growth.

Many restaurants and franchises in the United States give their customers the convenient option of ordering their food online. $IBRC CEO Paul Smith has said that fewer than 5% of restaurants in North America are using this type of ordering software. You do the math. The Dean can see the enormous potential in $IBRC’s market and so should you!

$IBRC plans to market their products across a spectrum of companies and businesses within the restaurant industry. That’s right. $IBRC is not just going to target the smaller chains and single, independently-owned restaurants but they are also looking to land deals with multinational and Fortune 500 Companies!

The Dean likes $IBRC because they planned ahead. Because their software has the ability to be programmed for different languages, this product will be marketed in emerging markets, such as China and India, as well. With plans to grow iBrands Corporation in the international markets through a licensing partnership program, you will be able to order food online all over the world!

It’s not very often that you can become a partial owner in an undervalued brand name that could potentially revolutionize the already lucrative market for antibacterial hand sanitizers (think Purell) in a very big way. But right now and with a market cap of less than $20 million you can own shares of BONU ($0.29) and be part of an exciting new trend in the consumer market.

BONU is the only player in the hand sanitizers market whose product (Ygiene) has the ability to kill Anthrax in addition to 99.97% of all human germs.

If its one thing I’m certain of: its that companies like Johnson & Johnson (JNJ) would pay a lot more than $20 million for a Purell-like product that also kills potentially life threatening bio-terrorism microorganisms like Black Mold and Anthrax!

The Dean is not a fortune teller, but one thing he can predict is that thousands of new investors will learn all about BONU this coming weekend.

*The Dean has been compensated fifteen thousand dollars by a 3rd party (546 Holdings, Ltd) for business development and corporate communications services related to Bioneutral (BONU). For The Dean’s full disclaimer click HERE.

This New Company's Chemical Technology Is Worth Celebrating

The Dean will celebrate the Fourth of July ’09 by teaching students all about one undiscovered company that has developed some of the chemical technology necessary to create real American Oil Independence.

If you’re looking for an ultra high-yield opportunity with a phenomenal story, you’ll only have to wait one more day because on July 4th @ 12:00pm EDT The Dean will be announcing a very special situation stock that is just about ready to launch one of the biggest penny stock marketing campaigns of 2009.

Chances are you’ll agree that this company’s chemical technology is so absolutely ground-breaking that with a little publicity the stock could soar by 500-1,000% or more.

Well what if I told you that this undiscovered gem is about to launch a very substantial marketing campaign that will put them directly in front of millions of investors? You’d probably want to get in before the crowd, right? Well that is exactly what I’m offering CollegeStock students this weekend as a special American Independence Day gift!

I’ve never been so confident about a penny stock to refer to it as a “gift” but I’m willing to put my entire reputation on the line because this company’s upcoming marketing campaign could create lifetimes of wealth for us all.

I just stumbled upon a blog entry written by Kris Davis @ SmallCapSentinal.com and I i’d like all students to add this CGCA reading to your homework today. The original article has been taken from HERE and I have also copied/pasted a version below for all students:

————————————

Are Oil Prices, Uranium and Alternative Energy the Real Winner in Iran?

There was optimism the week prior to the elections that Ahmadinejad might suffer an unexpected, albeit welcomed loss to rival Mousavi. The western world has been keeping a close eye on the unstable leadership of this oil rich country for years and this election could have been a pivotal turning point from a political position, but nevertheless, I believe it was still critical from a financial view.

I was extremely pleased when Republican Mike Pence introduced a bill to the floor that called for 100 new nuclear reactors to be built over the next 20 years. Nuclear power plants do not pollute the air or produce greenhouse gases. Most nuclear plants are very economical to run; with average production costs slightly lower than costs at coal-fired power plants and much lower than those at oil- and gas-fired plants. There are currently 103 reactors operating in the U.S., located at 64 sites in 31 states which produce 20 percent of the country’s electricity yet it had been since 1978 since a new reactor was built. The Three Mile Island incident sparked fear and controversy that ended up burying the possibility of a new plant under a mountain of political red tape.

————————————

SmallCapSentinal.com has received compensation for issuing the CGCA report above and its just a small part of a much larger marketing campaign. For instance, check out http://cobrapick2.com and check out the disclaimer: “[CGCA] was chosen to be profiled after Economic Advice had completed due diligence on the stock. Packet Portfolio, Ltd. has been paid $150,000 for this advertising effort.”

$150,000 is a lot of money to spend on any internet marketing campaign and I believe a lot more investors will learn about CGCA in the weeks ahead so please do your homework on the stock before thousands of other penny stock investors learn about CGCA, Friday’s news release and the substantial marketing campaign.

Spongetech Delivery Systems (OTCBB: SPNG) – which makes sponges infused with soap and wax – has been generating quite the buzz lately – and not only among consumers who love their sponges, but also in the trading community, which seems to love the stock.

SPNG has been drawing in lots of interest from investors due to a variety of corporate announcements and forward-looking statements.

• Spongetech has announced explosive earnings for the year 2009, particularly for Q4 ’09.  The company projects that earnings will grow even more in 2010.
• Spongetech has announced orders by retailers such as Costsco & Walgreens and there are rumors among investors that other large retailers (e.g. Wal-Mart) will also take orders from Spongetech.
• Spongetech is seeking listing on the NASDAQ exchange

These and other developments have been extremely positive for the company.  The stock has been trending significantly higher ever since the beginning of June – moving up approximately 700% from $0.0384 to $0.29.  Additionally, the volume of trades has increased significantly throughout the month of June.

SPNG had a very interesting day of stock trading on Friday June 14, 2009. The stock opened at $0.24 and moved up to a 2-year high of $0.29.  Around mid-day the stock came of the highs of the day and then began to recede in price gradually.

At around that time an extremely LARGE market sale of 50 million shares hit the tape which significantly drove down the price. Many other investors noticed this down-turn in the stock price and became overly emotional and panicked.  They must have felt the end was near for SPNG and they put in their sell orders to exit the stock.  The result was that the price reached a day low of $0.09 – a decline of more than 70% off the highs! The stock rebounded before the day was over after a favorable news article about sponge orders was released.

This strange behavior for SPNG brings to question what the future for the stock – and the company – will actually be.

Many stocks trading on the OTC markets – the OTCBB and PK exchanges – are subject to extreme swings.  Emotion seems to drive these markets (almost exclusively at times) as overly excited investors become very confident in a company and buy into it driving the stock price higher and higher.   At any sign of weakness, those same excited investors will panic and run for the exits causing a potentially large down-swing in the price of the stock.

Spongetech appears to show many signs of a bright future – the company is profitable and has many promising developments on the horizon.  However, one point of concern with Spongetech is the management – Michael Metter, Steven Moskowitz, and Frank Lazauskas.

All three directors of Spongetech are known stock promoters.  In the business of stock promotion, an entity – such as a marketing company – will contact a stock promoter to promote a particular company – with the expectation that new investors will be attracted to the company, thereby driving the price of the stock up.  Stock promoters are usually compensated with shares of common stock or with cash for their promotional services.

As excited investors enter into the marketplace for a promoted stock, the price of the stock will eventually reach a particular level, sometimes more than 100% increase than the price at time of promotion. At that point, large shareholders – which may have acquired shares at much lower prices – will decide sell their shares in the open market.  As a result, the large shareholders – which may include the original entity itself – will take fairly large profits nicely from the increase in stock price.

Quite simply stock promoters are salesmen – their job is to sell their audience on a product or service at the highest price they can receive.  Stock promoters and salesman both present only one point of view – and generally do not offer objective, balanced information to potential investors.

As an example, a company that has recently been promoted is Hydrogenetics, Inc (PK: HYGN).  HYGN currently owns 100% of Buffalo Biodiesel, which has signed several exciting contracts recently.  When HYGN was being promoted, I myself was extremely interested in investing.  As such, I contacted Buffalo Biodiesel numerous times to speak to someone about the contracts and the company.  Even though I left numerous messages, I never received a call back from anyone and never was able to get a live person on the phone.

The company HYGN experienced a great deal of investor interest and the stock price soared.  However, as the HYGN promotional campaign progressed the stock reached a high of 0.27 on fierce buying (an increase of over 2,000%), but has since crashed down as extremely large sellers have driven the price down.

The experience I had with Buffalo Biodiesel and the strange price action for the HYGN stock raised several questions for me.  Why did I never receive a call back from Buffalo Biodiesel?  Were the contracts that Buffalo Biodiesel signed legitimate?  Is all the news and being generated simply present to create hype in the stock?  Is HYGN a “pump and dump” campaign – as is so common among OTC stocks?

As mentioned earlier, the leaders of Spongetech – Metter, Moskowitz and Lazauskas – are known stock promoters.  Spongetech has issued a very, very large number of shares to a company called RM Enterprises International, Inc – at steep discounts to the market price.  The directors of RM Enterprises are Metter, Moskowitz and Lazauskas.  Spongetech has also continued to issue new shares over the past year – causing extreme dilution of its shares.

The actions of any stock promoter should always be questioned to help separate noise from actual news.  As such I have several questions about SPNG stemming from SEC filings, price action, news and rumors.

• What is the role of RM Enterprises International, Inc. in the corporate marketplace?  Why have so many shares of SPNG been issued to RM Enterprises – essentially the shares of SPNG have been issued to the directors themselves. Does RM Enterpise exist for the sole benefit of Spongetech?
• As owner of a large number of shares of SPNG, what would happen if RM Enterprises sold its stock holdings into the market over a period of one week?
• Is Spongetech trending higher largely because of hype, news reports and expectations?  What would happen if even a single negative news report was released?
• Is there truth to the rumor that the SEC is investigation SPNG?  Normally the SEC only investigates companies if there is reason to believe there is security fraud at place.
• If SPNG really wants to be listed on NASDAQ, why will they not allow all information to be public.  Currently it is not possible to talk with the Transfer Agent for SPNG about history of stock activity. This information should be readily available to all investors since SPNG is a public company.  A real sign that the company is serious about NASDAQ listing is allowing the Transfer Agent to talk with all investors openly.

Currently the price action in SPNG appears to be suspicious and unstable – the stock is not trading up and down based on normal market flow.  Instead it appears similar patterns of HYGN, CADD, CVRG and others – which are known “pump and dump” schemes.  A glance at the multi-year price history for SPNG will show some similarities to a pump-and-dump chart pattern.

Is Spongetech a company that is being run by stock promoters with the primary purpose of being pumped and dumped?  Or is Spongetech a legitimate company that is bound for success?  We will know more in the coming weeks – but currently the price action, management crew and repeated hype-style news articles, and questions that remain unanswered point to a risky investment when it comes to SPNG.

—————-

*This article was written by Rajat Chopra (choprar@gmail.com). Rajat held a position in SPNG on June 10 and sold for a 10% gain and then again held a position in SPNG on June 12 and sold for a 30% loss.

Section 17(b) of the Securities Act of 1933 makes it unlawful for any person to tout stocks for consideration without fully disclosing the consideration. Regardless, many stock promoters fail to disclose such material information in order to dupe investors into buying their hot penny stock of the week.

Proper disclosure is a very important part of a stock promoters repertoire and the one used by otcstockexchange.com has evolved quite well over the years. In the past, otcstockexchange.com used to tout penny stocks without any compensation disclosure whatsoever. Although they had been compensated 100,000 free trading shares to promote FCCN back in 2006 they failed to properly disclose this material fact (see legal disclaimer #1).

After a while, they decided it would be a good business practice to at least disclose compensation “from a 3rd party”. While this “3rd party” trick still isn’t full disclosure… it was a step in the right direction (see legal disclaimer #2).

Recently, otcstockexchange.com began writing a novel of a legal disclaimer at the bottom of each email newsletter. In fact, their legal disclaimer is usually longer than their promotion. But at least now they’re following the law, which is pretty rare among penny stock promoters today (see legal disclaimer #3).

Congratulations to otcstockexchange.com for joining the few promoters that believe in full transparency. It may take a few more years before the entire industry becomes fully transparent, but I’m a firm believer that we’re headed in the right direction.

-The Dean

LNET is up about 28% since being one of The Dean’s Trades on 4/23 and it’s at an important technical level. It has lots of resistance dating back to August 2008 (notice the sideways price action) and if it can break out above this resistance it could quickly pop to $5-$6.

ONTY was the perfect shorting opportunity earlier today and luckily it rebounded nicely, setting up for another perfect shorting opportunity! Today’s sell-off has probably spooked a lot of investors so I expect tomorrow to be a prime day for short sellers.

EVII is being promoted by a few powerful penny stock promoters including 24-7stockalert.net, stockpreacher.com, hototc.com and stockegg.com. The Dean always follows stock promotions by these groups and may go long if it doesn’t gap up.

DDRX finally showed signs of weakness today and I’m anticipating a big sell-off soon. The stock is up 1,633% during the past month and despite the fact that they posted an impressive quarterly net income- 1,633% in a month isn’t sustainable. This is my #1 potential short.

MDOR is up 400% over the past month and all the signs indicate that it will make an excellent short once it shows some weakness. The insiders are dumping, they’ve received financing on terrible terms and illegal stock promotion is taking place by NYTimesReport.com (FYI see my blog about NYTimesReport HERE).

NVAX is the top performing swine flu play on The Dean’s List of swine flu stocks and is up 293% since 4/23. This could go higher but it’s not worth the risk. I will short NVAX once it: (a) gaps up a lot, (b) spikes intra-day due to short squeeze or (c) closes down for the day and fails to show strength the following morning.

MNTG closed up nicely and the only information I can find is a Form 13G filing confirms that Private Management Group, Inc. now owns 4.98% of the shares outstanding. They know something we don’t know and I expect MNTG to trend higher into their 5/7/09 earnings announcement.

Swine Flu is all the craze on Wall Street and I decided to tally up the score of The Dean’s List of swine flu stocks. Keep in mind that I’ve been updating this list regularly and it now contains 24 stocks moving on swine flu mania:

(NVAX) +111.27%
(ADLS) +7.06%
(BCRX) +75.11%
(GNVC) +7.81%
(DVAX) +29.67%
(HEB) +32.67%
(HGSI) +7.69%
(IMM) +3.67%
(INSM ) -0.84%
(SVA) +34.01%
(VICL) +11.84%
(MCET) +15%
(HALO) -2.58%
(AVII) +15.73%
(XOMA) +11.02%
(LWLLE) +180%
(CBMX) +1.85%
(CERS) +20.18%
(CRXL) +6.49%
(GNBT) +44.78%
(NNVC) +40.00%
(PPHM) +7.20%
(QDEL) +6.50%
(SIGA) -0.97%

My list of swine flu stocks has gained an average of 27.71% in about 4 hours. Granted most of them did gap up quite a bit… but it’s been quite a while since we’ve seen ‘Mania Movers’ up +100% or more. It’s almost like the dot com days of old.

Worth noting is the #1 gainer LWLLE was promoted by Lebed.biz. At exactly 9:39am he sent out an email newsletter hyping exaggerating pumping discussing the stock and by 9:44am it had gained 200%. This is a real testament as to how fast some of these stock promotion plays can run (see chart below).

Congratulations to everyone who took the time to research The Dean’s List of Swine Flu stocks and be on the lookout for more runners because I don’t think ‘Swine Mania’ is over quite yet.

Since 2004, mPhase Technologies (XDSL) has been retaining the services of notorious penny stock promoter Jonathan Lebed. Over the past 5 years Lebed has shamelessly promotedXDSL while the company continues to lose tens of millions of dollars.

When Jonathan Lebed had his first run in with the SEC back in 2001, he resided with his parents in Cedar Grove, NJ just a few blocks away from Ron Durando and XDSL’s corporate office in Little Falls, NJ.

Obviously Ron Durando had heard of Lebed at that time and the two started doing business together shortly thereafter. Before Lebed was even old enough to incorporate his own company (must be 18 years old) he was accepting large chunks of cash and stock to hypepump tout exaggerate discuss XDSL.

What’s ironic about their relationship is that Ron Durando himself has run afoul with the SEC.

On October 18, 2007 the SEC instituted a cease-and-desist proceeding against Durando and one of his companies at the time, PacketPort.com. Specifically, Ron Durando had…

-Violated Section 5 of the Securities Act by making unregistered offers or sales of PacketPort.com common stock.

-Violated Section 16(a) of the Exchange Act and Rule 16a-3 by failing to timely disclose his positions on Form 3.

-Violated Section 13(d) of the Exchange Act and Rule 13d-1 by failing to timely disclose his acquisition of +5% of PacketPort.com’s shares outstanding.

The SEC cease-and-desist order naming Ron Durando can be seen in its entirety HERE.

Since 2004 the two have been working together and in my opinion it’s been a mutually beneficial relationship (Lebed pumps, Durando’s team dumps & everyone gets paid minusXDSL shareholders). You can see from Lebed’s legal disclaimer below that it’s certainly been a very profitable endeavor for him:

My firm Lebed Biz LLC has been compensated by XDSL 1 million restricted shares and $50,000 cash for a one-year investor relations contract. We were previously compensated by XDSL 850,000 restricted shares, $55,000 cash and 175,000 warrants to purchase shares at $0.35 for past investor relations contracts which have since expired. We have sold our shares but still hold our warrants. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to:www.lebed.biz/disclaimer.htm

So Lebed has received about $130,000 from XDSL over the years for “investor relations” services… good for him. But when he first started promoting XDSL the stock was trading as high as $0.60 and today it closed at $0.0123 for a loss of 98%.

A 98% loss in a stock (XDSL) that Lebed wrote:

12/27/05 “I believe XDSL should be worth a lot more than what it is currently trading at [$0.21].”

1/10/06 “My #1 pick for 2006 XDSL”

2/1/06 “I believe XDSL clearly is the most promising stock trading on the entire OTC BB”

10/24/06 “I believe XDSL is going to EXPLODE just like PLRS did for us!!!!!!!!!!!”

1/5/07 “I am willing to bet anything that we are about to see XDSL breakout above the 200-day moving average of $0.201 and start to explode.”

2/13/07 “I think the PERFECT Valentine’s Day Gift would be shares of XDSL stock [at $0.20]”

7/18/07 “XDSL is going to EXPLODE! I can’t believe the stock is only $0.125!”

5/5/08 “I can’t believe XDSL is trading right now for only $0.104! XDSL‘s chart looks amazing and I believe the stock could be ready to make it’s BIGGEST run ever!”

Yikes! Talk about one bad call. Since 5/5/08 Lebed hasn’t mentioned XDSL in a single email newsletter and I tend to doubt that he’ll ever mention the stock again unless XDSLforks over more cash.

Exaggerated claims are the bread-and-butter of Lebed’s business model because a small % of email subscribers buy into his lingo. But in the long-term ‘Accountability is King’ and in a perfect world every mention of  Jonathan Lebed would cite all his successes, failures, winners and BIGGEST FLOPS EVER!!!!!!!!!!! (yes, that’s 11 exclamation points).

Key Takeaways:

(1) Never invest in a penny stock for its “coming soon” products or anything whatsoever that’s 100% forward-looking without material substance.

(2) Tips are for waiters. Be skeptical of all “tips” regardless of the source and remember that some stock promoters fail to properly disclose their compensation received.

(3) There are a lot of dishonest penny stock executives out there.

(4) Birds of a Feather Flock Together

So Lebed.biz released their “HUGE NEW PICK” @ 9:39am and the symbol is CLXS. Within 60 seconds I had bought 20,000 shares at an average price of roughly $0.196 (fill’s at .19, .195 & .2).

It took CLXS just 5 minutes to reach its intra-day high of $0.22 per share from the time Lebed.biz released their first email alert. Lucky for me I spend about 10 hours/day in front of a keyboard because I literally had to be that quick to make money on this stock promotion.

Once CLXS dropped back to $0.20 I got into “asset protection” mode and immediately entered a sell order for $0.21. I  was able to liquidate all my shares at that price for a return of 7.6% and it took just 11 minutes from start to finish  so I’ll take the quick return and happily move on to the next paid pump.

Below is a zoomed in chart of the morning volume for CLXS. The upward price action was even faster than I anticipated… so it’s tough for me to recommend anyone doing this without super quick fingers.

Back on 3/20/08 the SEC halted the stocks of three companies for promotional videos on youtube.com: NTCX, YNGR and GPKE. These halts by the SEC were the first of their kind for promotional activities on social media websites… but The Dean thinks they certainly won’t be the last!

Social media stock promotions are catching fire— and the latest trend seems to be stock promotions on Twitter.com. Now while stock promotion is legal… if you don’t disclose payment then you’re violating SEC regulations.

While Twitter.com should be utilized by every company (both public and private) for marketing purposes… there’s a big difference between good tweeting & bad tweeting. I’ll use CVIC as an example of bad tweeting.

CVIC already has 1,816 followers but only 27 twitter updates. And most of those updates are promoting their own stock… ultra risky move for SEC halt IMO!

They also claim to be the “first public co in medical marijuana biz” but that’s completely false… there were plenty of otherscams stocks that tried the medical marijuana angle (google Amigula). There’s even another publicly-traded marijuana scam stock spamming on twitter! The symbol is GFON.

So any public company utilizing twitter.com… you’re walking a very fine line and should get in contact with the pro’s @ http://www.intelligendo.com. Their expertise is social media for public companies and they understand the in’s & out’s.

In my opinion, the year 2009 will see numerous counts of stock halts by the SEC for undisclosed stock promotions using Twitter. So before the SEC warns you on such illegal activity… take it from The Dean. You don’t want to be caught holding the stock of any company risking a halt from the SEC on the likes of twitter stock promotion.

It’s amazing how many different angles you can trade play these high-flying penny stocks with access to the right information. My latest example of this phenomenom is MTIZ- a paid-pump by hototc.com that I introduced to subscribers in the 4/9/09 issue of The Dean’s List.

I pegged MTIZ as a ‘Long’ and specifically said to watch out for the early A.M. gap up since hototc.com has a big following. Sure enough… MTIZ gapped up over 200% and I immediately saw the opportunity to short because its one of the many common trading patterns of paid-pumps. If you were able to borrow shares to short at $0.031 and covered at $0.025 you could have locked in a nice 51% return in under 4 hours. Pretty cool, huh?

Of course its likely a ‘hard-to-borrow’ stock but thats all the more reason to work countless hours to find the right broker/market-maker to trade with so you can take advantage of these opportunities.

SPNG finished up about 31% today and continues its huge run since I wrote about it on 3/18 as a possible bottom-feeder play. The stock now up as much as 215% since my 3/18 blog post on the heels of Tuesday’s announcement of record sales for the month of March 2009.

But for as much dirty water as that Spongetech sponge can absord… I’m more interested in sharing a Barack Obama quote from today’s G20 conference. If you can fully absorb the absurdity of this quote I think you’ll become a better trader.

During Obama’s speech he suggested that people act out of hope and confidence in their future and not out of fear.

“Despite the current hardships we are going to get through this [and] basing decisions around fear is not the right way to go.“

In my opinion taking this advice and trading based off of “hope” is like trading stocks when you’re drunk. I recommend doing the complete opposite and start becoming a more skeptical trader than ever before. And BTW I tagged this entry into the “Stock Promotion” category cause that’s basically what Obama has become.

Last night Boonmarket.com began a stock promotion for LLSR. ‘Bones’ @Boonmarket.com was compensated $15,000 cash (from an unknown 3rd party) to promote LLSR and what an incredible job they’re doing!

As I type this entry LLSR is @ $0.28 (+115%) so we’ve obviously missed the run. IMO the play is now to the short side but its gotta be impossible to find shares to short (unless you’re a shady market maker). The next time Boonmarket.com starts a promotion I’ll def. consider buying shares early A.M. but only if it doesn’t gap up.

TIP TO REMEMBER: please please please never buy a promoted stock on the first day of a campaign if it gaps up more than 15-20% cause you’re just asking for trouble.

Anyone else notice MNTX is mysteriously up by as much as 80% this morning on heavy volume??? Well its a pump being orchestrated by Beacon Equity Research headlined “MNTX Could Surge on New Infrastructure Stimulus Spending” (:cough:hyperbole :cough:). By studying the MNTX 30-day chart you may learn some good insight to how a Pumper works.

The odd part of this pump is that Beacon claims that they have not been compensated for this campaign. ULTRA FISHY! My speculation is that someone on the inside is unloading lots of shares today. 

Analyzing the chart above, the green spray paint indicates unusually high volume. This is pure speculation— but it wouldn’t surprise me if these buyers are unloading shares today… completely orchestrated with the Beacon pump. Fueling my speculation is the fact that MNTX is profitable (4 P/E) and that they’re trading at a 52-wk low (therefore giving the Pumper a supposed floor). Or maybe i’m wrong and Beacon was feeling generous and wanted to render their services for free… DOUBT IT!

I expect MNTX to give back a lot of today’s gain so I’m looking for shares to short.

Using my 5 years experience as a stock promoter… the chart below screams pump & dump. Now this is all pure speculation but I want to analyze the PGYC chart to show everyone how a real successful pump & dump works.

It’s sad to see promoters like StandOutStocks.com actually taking these crappy deals. According to their website they have received $50,000 USD to promote PGYC… and i’d bet my entire Sacagawea Dollar the party responsible for funding this promotion will make at least $1 million by purchasing millions of shares below $0.02 and selling them all above $0.06.

Other websites associated with the PGYC pump are HotShotStocks.com and PennyPerformers.com.

It’s sad to see how desperate people have become in the Great Recession and I wish for just once in their lives they could experience the feeling of helping real companies and helping people while making money at the same time!