July 11, 2013 : Pump and dump campaigns on an unusually large number of stocks in a single day, 28 to be exact, resulted in massive losses for players today , according to today's edition of The Nightly .
More than half of all buys on AMMX BFLX CACL DOMK FLST GLBH HIMR KABX LVVV MAXD OTHM TUNG WDAS and XUII finished in the red today, destroying most day traders in these stocks. Traders in AMMX BFLX and FLST especially took it on the chin, as these stocks opened at or near the highs and headed straight south right from the git go.
AMMX BFLX DOMK FLST GLBH HIMR KABX LVVV MAXD OTHM SOUL SRBL WDAS and YFRM all closed below the prices they were at when their respective Pump & Dump campaigns began.
Amongst the heavily traded Pump & Dumps, few could be found with a significant number of winning trades over losing ones. One bright spot was found in shares of BRND where almost all of the 1,257 trades were at or below the closing price. The Pump & Dump was aided by the announcement that Dennis Rodman would be private labelling vodka to be distributed by the company. Rodman is a name recognized by old time NBA fans, but who is unlikely to garner favor amongst younger vodka drinkers, especially over popular Sean Combs' Ciroc brand. Still, the announcement provided hope for fortune seekers who seem to forget that many a penny stock scam was precipitated with a celebrity attachment.
Last year, mega-star Pamela Anderson was spokesperson for the FROG scheme, for which several of the perpetrators, including President Julian Spilari are currently in prison awaiting trial for securities fraud. Some other celebrities attached to penny stock frauds include Eric Roberts, 50 Cent and A.C. Green.
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