I thought it might be of help to people who are considering investing in penny stocks as an alternative to Ponzi schemes to follow up on the stocks mentioned in this thread:

CBAY, 23 cents a share on May 12th, currently trading at 11 cents a share, down 52.2%:

http://www.pinksheets.com/quote/char...n=2-6-8-0-0-56

NDOL, trading at 75 cents a share on May 16th, currently trading at 17 cents a share, down 75.4%:

http://www.pinksheets.com/quote/char...n=2-6-8-0-0-56

AURC, trading at 30 cents a share on May 16th, currently trading at 17 cents a share, down 43.4%:

http://www.pinksheets.com/quote/char...n=2-6-8-0-0-56


If someone who was prone to believing the hype that they found posted on internet bulleting boards or received in spam email invested $10,000 in each of these three OTCBB stocks, they would have lost $17,100 in five months..

Be advised that by the time you receive a SPAM email or read a posting on the internet touting the bright future of the stock price performance of these thinly-traded OTCBB ("pink sheet") companies, the people who are actually making money have already made their purchases, and are just waiting for you and thousands of others to enter your "buy" orders, so that they can sell on the resulting pop in the share price.

A safe rule of thumb if you choose to gamble your money in the volatile world of penny stock investing is "if you read about it on an internet chat forum or SPAM email, don't buy it".

These were actually not pumped via email like some I have seen. After I made the picks they all did increase anywhere from 10%-100%. With penny plays they are mostly momentum driven so a quick in and a quick out is the way to go.

Many penny stocks are scams, but they have loop holes of getting away with it unfortionately.

Many stocks pump themselves up in order to release more shares into the market, Thats why I also urge everyone to be extremely careful and only invest money they can afford to live without. It's much like gambling.

As for bulletin boards and forums, they can be very valauble. I have see stocks increase 10 fold that and never look back that were being discussed on bulletin boards. You gotta do your own DD and don't invest on others advice though.

Re: "mostly momentum driven".

I would agree, with the definition of momentum as it applies to penny stocks being literally translated as "hype". In the case of the stocks that I mentioned in my post above, the reality of their current share price reflects the origin of their brief momentum as hype.

RE: "As for bulletin boards and forums, they can be very valauble."

I agree, as long as people understand that what they are reading about OTCBB stocks on such boards is almost exclusively hype being generated by the people who have already bought shares.

Re: "... urge everyone to be extremely careful and only invest money they can afford to live without. It's much like gambling"

and:

"You gotta do your own DD and don't invest on others advice.."

I agree. That's excellent advice. That's why I scrutinize the reports that these companies are required to submit to the SEC, rather than believing what people who are already shareholders are saying on the internet.

Btw cbay is gettibg a nobolist to identify short position...

Here is some interesting information for anyone that might want to research the legal issues involved with buying penny stocks and then promoting them on the internet:

SEC, brief description:

http://www.sec.gov/answers/pumpdump.htm

SEC, more in-depth:

http://www.sec.gov/investor/pubs/pump.htm

GREAT article -> 16 year-old makes $800,000 promoting penny-stocks on internet bulletin boards, charged with fraud by the SEC, settles for $280,000. CBS News:

http://www.cbsnews.com/stories/2000/...in242489.shtml

Same kid, but the SEC litigation release states he made a total net profit of $272,826, and agreed to pay disgorgement of $272,826 and prejudgment interest of $12,174 for a total amount of $285,000.

http://www.sec.gov/litigation/admin/33-7891.htm

That is deffinitely a good article about the 16 year-old being charged with fraud for promoting penny stocks.

Calbay is definately not a good stock to invest for longterm.

And why is that? Any other reason other than that you are short on it?

I thought it might be interesting, considering that it has been about a year now, to check on the fortunes of these once highly touted and hyped "investments":

CBAY, Trading at 23 cents a share on May 12th 2006, currently trading at $0.0041 a share (yes, that is 41 hundredths of ONE PENNY). Your $10,000 "investment" would now be worth $9.43:

http://www.pinksheets.com/quote/char...-0-0-009301600

NDOL, trading at 75 cents a share on May 16th 2006, no longer exists. What is left of it now trades as "North West Oil Group" (NWOG.PK). Currently trading at $0.034 (yes, that is three point four PENNIES). Assuming that one share of NDOL turned in to one share of NWOG, your $10,000 "investment" would now be worth $453:

http://www.pinksheets.com/quote/char...=2-6-9-0-0-512

If you need the details of how your NDOL turned in to NWOG*, you may call:

Maria Romanova
North West Oil Group
105062, Moscow, street Makarenko, ä.1/19, str. 3
Tel: +7 495 621 1115
E-Mail: maria@szng.ru
Web: http://www.szng.ru

AURC, trading at 30 cents a share on May 16th 2006, currently trading at 14 cents a share. Your $10,000 "investment" would be worth $4,666. Someone must be running this one through the "hype mill" for a second round: after steadily trending downward to where it was selling for 5 cents a share through most of March and April 2007, it has surged to 14 cents in the last seven days:

http://www.pinksheets.com/quote/char...=2-6-9-0-0-512

Current score one year later: $30,000 "invested" currently worth $5,128. Total loss: $24,872.

Yeah they are in controversies all the time..Not sure whether theyidentified the spammers or initiated any legal action. I did have chats with clients in Gomeetnow conferencing rooms and frankly not many have positive reviews.

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