Monthly Archives: July 2014

Penny Stock DigiPath Skyrockets; Management Issues Press Release

DigiPath LogoDigiPath, Inc. (OTCBB and OTCQB: DIGP), a digital pathology solution provider that is expanding into the cannabis testing and education markets, announced today there has been no material development in its business and affairs not previously disclosed or, to its knowledge, any other reason to account for the recent unusual market action.

“We have noticed unusual price and volume increases for our securities over the last three trading days,” said Steve Barbee, CEO of DigiPath. “While we appreciate the increased attention DigiPath is receiving from the market, we are unaware of any corporate developments outside of those previously disclosed in our filings with the Securities and Exchange Commission that would explain these increases.”

The stock closed at $0.51 on Friday, July 25 but after opening at $0.55 on Monday, July 28, it traded as high as $6.00 per share and finally closed at $2.50. That day, it traded over 400,000 shares but averages less than 20,000 shares traded daily (previous 3 months).

We have not yet seen any websites or newsletters that have pumped the stock; and seen nothing more than message boards and traders taking advantage.

This again highlights the need to follow only unbiased penny stock picks and penny stock newsletters as most are either paid to pick a stock or own shares and are actually selling when telling you to buy!

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Stocks Down on Europe and Argentina Concerns

U.S. stocks were down on Thursday, with investor sentiment down as well. A drop in European inflation and the second default in a dozen years by Argentina furthering concerns.

Euro-zone inflation declined this month, confirming the European Central Bank’s worries that the European economy is not healthy enough to support higher prices.

Domestic data showed weekly jobless claims coming in slightly above expectations, but the four-week moving average still was positive overall.

Cynk, the Penny Stock that was, trades again

The Belize company with a stock price that went from 6 cents a share to over $21, washalted by the SEC. It fell to $2.10 on Friday, its first trading day after a 10-day suspension.

Cynk shares bounced between $1 and $2 a share.

At one time, the market capitalization rose to $6 billion. Technically not a “penny stock” at that time.

 

Stick with real companies, truly unbiased penny stock picks.

TUESDAY – U.S. stocks declined on Tuesday, pulling the Dow under 17,000, as the United States and European Union joined in expanding sanctions against Russia, highlighting a geopolitical crisis that overrode investor enthusiasm for earnings from corporations including Merck & Co.

“Investors are clearly hyper-sensitive right now to things happening in Europe and Russia, and whether it’s worsening or not,” said Dan Greenhaus, chief global strategist at BTIG.

In a statement televised live Tuesday afternoon, President Barack Obama said the United States was expanding on measures announced two weeks ago, targeting Russian energy, defense and financial sectors as Russia has continued to support separatists in the Ukraine, and was still building up forces on its own border with Ukraine.

Obama’s statement followed European Union governments that announced sanctions earlier in the day to reduce Russia’s ability to tap into bank financing and advanced technology.

Stocks Off Lows, But Dow Still Down

U.S. stocks declined on Friday despite positive economic data as weak Amazon earnings and concerns over continued unrest in Ukraine and Gaza weighed on markets.

“The percent of stocks above their 50-day moving averages isn’t a vast majority, so the divergences within it tell you the that markets might want to consolidate a little bit,” said Art Cashin, director of UBS floor operations at the New York Stock Exchange. “So I think certainly for now they want to rest a little.”

Orders for long-lasting U.S. manufactured goods rose more than expected in June, pointing to momentum in the economy at the end of the second quarter. The report did not move markets in pre-market trading.

“The markets are looking a bit tired,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “We’re headed to a very busy week of economic data.”

The Federal Open Market Committee meets next week, and economic data reports include second-quarter GDP and U.S. employment figures.

Cynk: The $6 Billion Penny-Stock Debacle (Another ‘AwesomePennyStocks.com’ Scam)

Cynk Technology (CYNK), a company with no assets, no revenue, and one employee, for one hour in July had a market value of more than $6 billion.

Cynk had started trading in 2013, for a few pennies. That was until June 17, 2014, when shares that were at 6¢ jumped to $2.25.

In filings with the Securities and Exchange Commission, Cynk lists its offices as the The Matalon, a six-story glass building in Belize City, Belize – Suite 400. There is no Suite 400. The building manager says the company has never had an office there. There aren’t any $6 billion companies in Belize.

One of the biggest boosters tied to Belize, AwesomePennyStocks, was able to stay anonymous until the Bugatti- and Lamborghini-driving 26-year-old behind it was sued in March by U.S. regulators. He settled on July 7 for $3.6 million without admitting the allegations.

Cynk: The $6 Billion Penny-Stock Debacle

 

Shailesh Shah pleads guilty to stock scam

WASHINGTON, DC: The CEO of two publicly-traded companies in the US, Shailesh Shah, was convicted on charges that he paid kickbacks in return for purchases of his companies’ stock.

Shah, 48, of Chino, Calif., pleaded guilty before U.S. District Judge Richard G. Stearns to two counts of mail fraud and two counts of wire fraud, according to a press release issued by the FBI. His sentencing is scheduled for October 23 of this year.

Shah was the President and Chief Executive Officer of SOHM, Inc. and Costas, Inc.

Broker Ordered To Pay $1.3 Million In Stock Scam

FORT MYERS, Fla. (CN) – Wayne Burmaster and accomplice Edward Hayter sold unregistered shares to investors, misrepresenting them as stock in a hospitality holding company, according to a federal complaint the Securities and Exchange Commission filed in 2010.

Burmaster and Hayter used a fake name, touted  him as an “accomplished entrepreneur,” and made false statements in press releases to convince the public to invest in their penny stock.

Selling tens of millions of unregistered shares to several companies, one of which was Burmaster’s, for little or no payment, the brokers managed to increase the price, making money at investors’ expense, the Commission claimed.

10-Count Indictment For Penny Stock Fraud Unsealed

Penny stock scam artists have been around as long as stocks themselves. Another indictment, unsealed this past week involves the ex-husband of “Sopranos” star Jamie-Lynn Sigler.

penny stock scammer

AJ Discala, ex-husband of Jamie-Lynn Sigler, arrested in penny stock scam

Abraxas J. Driscala, CEO of OmniView Capital Advisors, as well as six others were charged  with manipulation in Brooklyn, New York.

As always, be careful out there! Stick with UNBIASED sources for any stock (especially penny stock) ideas. FalconStocks.com is the only unbiased penny stock picks newsletter that has actual Wall Street experience.

Market will crash… don’t know catalyst: Marc Faber

Marc Faber

He’s calling for a 30 percent decline in the S&P 500.

The market is setting up for a big decline that could be as bad as the crash of 1987, according to Marc Faber, known as “Dr. Doom.” He just isn’t sure exactly what will set it off.

“The problem with crashes, you never know beforehand precisely what is the catalyst,” the publisher of the Gloom, Boom & Doom report told CNBC’s “Closing Bell.”

It could come from the credit market, equities being perceived as too expensive or a geopolitical event, he added.

Watch the video and read more.

His comments came a day after he told “Futures Now” that the asset bubble has begun to burst.