$NAMG & stock brokers required to bet against fraudulent pump N’ dumps

I was browsing the NAMG iHub message board, rather surprised there are no posts today after seeing the stock breakout 13% in a single day. I was long NAMG from Tuesday of this week at a price of $1.01. I sold half of my position yesterday at $1.08 and the last half today at the open, also $1.08. Why did I sell right at the open today? Because I could not watch my level 2 and charts today, and therefore instead of exposing myself to blind risk, I decided to play it safe and just close the position for a small profit. Was I disappointed that I didn’t hold all the way to $1.21 (today’s closing price); yeah sure I am. But it’s no big deal; there’s always another trade to be had.




Here is my post on the iHub message board the day that NAMG started to test the $1.05 level. (Thursday, 10/24/13 03:00:36 PM)


Boy did I call this one right! I’ve been telling several people in the TIMAlerts chat room that it was time to start covering and/or boxing their short positions on NAMG.



After seeing no real activity on the iHub NAMG message board today, I checked the Yahoo Finance NAMG message board. There is some activity here. I see one guy who asks this question which I will answer for him here.

I believe this is a pump & dump stock promotion, as many here do. Does anyone know a broker that will allow shorting (short sale) of this stock and what would be the minimum investment and margin amount required? Potential returns are massive.


Question #1 Does anyone know a broker that will allow shorting (short sale) of this stock?

Answer #1 Interactive Brokers and SureTrader will allow one to sell short NAMG and plenty other PINK/OTCBB stocks.

– Interactive Brokers requires a minimum amount of $10,000 USD to open a margin account.

– SureTrader only requires $500 USD to open an account!

(If you want referrals to either broker, send me an email request: dazetrader at gmail dot com)


Question #2 What would be the minimum investment required?

Answer #2 The minimum investment would be 1 share of stock, which is literally peanuts, you can invest as little or as much as you want!


Question #3 What would be the margin amount required?

Answer #3 Both of the above mentioned brokers adhere to the $2.50 rule. Which means if a stock trades below $2.50 per share, you are required to put up $250 margin for every 100 shares that you want to sell short. For example, say you have a XYZ stock trading at $1.00 and you want to sell short 1000 shares. The amount of cash to short the stock would be $1.00 x 1000 = $1,000, but the margin requirement is actually $2.50 x 1000 = $2,500. So to hold this XYZ stock short, you will be required to maintain at least $2,500 in your trading account.

I have been subscribing to TIMAlerts subscription service for just over 1 year now. The best part about this service is the live chat. You can be sure to hear about the very latest and up & coming pump n’ dumps that are coming to the table and are currently in-play. You will also greatly reduce your learning curve in the OTCBB/PINK market place.

If you are interested in subscribing, click on this link! Or send me an email and I can get you connected as well.  dazetrader at gmail dot com

$MCP Unusual option activity leads to upside breakout the next day.

I have been keeping on eye on MCP for the last 6 months or so. The chart has bottomed already and yet there is approximately 35% of the float still holding onto their short positions. Today Stifel raised Molycorp’s 2014 EPS estimate to 11c from 8c, vs. consensus of (7c). http://bit.ly/17BLFxT. News Breaks Sept 5, 2013 10:09 EDT $MCP Molycorp 2014 EPS estimate raised to 11c from 8c at Stifel.

So what do you think, did somebody “know” the Stifel news was coming out today and that is why we saw the 3.15K contracts sold-to-open in the SEP 20 ’13 $6.00 puts yesterday???     [ I think so 🙂 ]


MCP daily chart finviz


MCP is a rare earth minerals play which has an all time record high of $79.16. Now I’m not suggesting that it goes back up there, but I do think at it’s current price and judging by the chart, it certainly looks under valued.



I have recently been looking at taking a bullish position in MCP seeing how “the stars were aligning”. Seeing this tweet from a guy on twitter reminding me that MCP option volatility was at 52 week lows as well. This provided me further indication that it was time to start looking at buying a long position in MCP.

Nick Pritzakis ‏@QuestOptions26 Aug $MCP 52-wk atm implied volatility low.
12:36 PM – 26 Aug 13 · Details
The http://www.optionseducation.org/tools/historical_implied_volatility.html website is an excellent resource to look up data about options which can help you in your trading decisions.
MCP volatility data
And finally, here is the unusual option activity data which put the icing on the cake for me and helped me trigger my buy in the Oct 18 ’13 $7.00 calls for $0.21 on Sept 04 2013.
(click on the image to enlarge)
Edit / Addition:

@DazeTrader News was out pre-market y’day on China Rare Earth crackdown – drove the action.

11:28 AM – 5 Sep 13


China Rare Earth Stocks Rise on Crackdown Report: Shanghai Mover

By Bloomberg News – Sep 4, 2013

Rising Nonferrous Metals Share Co. (600259) and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. led China’s rare earth stocks higher following a report the nation will curb illegal production of the metals.

Rising Nonferrous rose 4.1 percent to close at 48.70 yuan today in Shanghai, after climbing as much as 8.6 percent. Baotou Steel Rare Earth increased 0.7 percent to 29.46 yuan. The key Shanghai Composite Index rose 0.2 percent.

China will inspect 1,594 rare earth producers and traders nationwide as part of measures to halt illegal production, the Economic Information Daily reported, citing a government official it didn’t identify. The country, supplier of 90 percent of the world’s rare earths, has imposed export quotas since 1999 to help conserve resources and cut pollution.

The U.S., the European Union and Japan complained in March last year to the World Trade Organization about China’s limits on shipments of rare earths, a group of 17 chemically similar elements used in wind turbines and hybrid cars.

“The inspection is part of government efforts to crack down on illegal mining, fueling speculations that the move will drive up rare earth prices and benefit bigger companies,” said Li Xiaolu, a Shanghai-based analyst with Capital Securities Co.

The Ministry of Industry and Information Technology will create a ‘blacklist’ of companies found to have violated rules, the report said, without elaborating on the action the government plans to take. Three calls to the Ministry of Industry and Information Technology’s general office went unanswered.

China’s southern provinces produced at least 37,000 metric tons of so-called heavy rare earth minerals last year, more than double the 13,400 ton output quota set by the government, the Daily reported, citing the Association of China Rare Earth Industry.

China Minmetals Rare Earth Co. gained 0.7 percent to 26.04 yuan, while Aluminum Corp. of China Ltd., whose parent has rare-earth assets, increased 3.7 percent to HK$2.80 in Hong Kong trading.

To contact Bloomberg News staff for this story: Helen Yuan in Shanghai at hyuan@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

Will $GCIH fizzle like the previous 11 Stockmister stock promotions?

On Friday Aug 23 Stockmister promoted GCIH and they managed to close the stock +1,014% in one day. Now one cannot take that percentage gainer quite truthfully due to the manipulation behind the whole scheme. Promoters like to see who can create the largest percentage gainer so that they have bragging rights which they can then boast all over the Internet and this usually increases their subscriber base and then pads the promoters pockets. What I mean by truthfully is the following, notice how in the last 2 months of GCIH historical trading, it only traded 2 previous days. So this is not a liquid company by any means, and this type of setup is what the promoters are targeting for this type of +1,000% play.

GCIH 08-23-13

GCIH just released their latest 10Q earnings report last week Monday, Aug 19 2013. One doesn’t have to look too hard to find some questionable items within the 10Q filing. For example: GCIH working capital deficit of $21,463,914 as-of June-30-2013.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of its liabilities in the normal course of business. The Company has a working capital deficit of $21,463,914 and $28,109,045 as of June 30, 2013 and December 31, 2012, respectively. As the Company has limited cash flow from operations, its ability to maintain normal operations is dependent upon obtaining adequate cash to finance its overhead, sales and marketing activities. Additionally, in order for the Company to meet its financial obligations, including salaries, debt service and operations, it has maintained substantial short term bank loans that have historically been renewed each year. The Company’s ability to meet its cash requirements for the next twelve months largely depends on the bank loans that involve interest expense requirements that reduce the amount of cash we have for our operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is in the process of obtaining informal assurance from our current lender that our short term loans will continue to be renewed and further opening dialog with the lender to convert the short term loans to long term loans. Additionally, the Company is assessing its ability to increase rental rates for its leasing business in order to generate additional revenue. Further, the Company is continuing to focus efforts on cost containment to reduce general and administrative expenses. With its relevant hands-on expertise, the Company also plans to expand operations to include property management. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Source: http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=9467057


I have compiled the last 11 stock pick charts that Stockmister has been involved with to try and get a feel for what we can expect GCIH might do in the next few days.


PGCX 08-22-13

IALS 08-07-2013

SNET 08-15-13

BLFR 08-14-13

FDMF 08-13-13

EXHI 08-13-13

SOYL 08-08-13

ACGX 08-05-13

VIZS 08-06-2013

SEEK 07-30-2013

ETEK 07-17-2013

Sell Citigroup Oct $55 calls reaped 40% gain overnight!

From: DazeTrader
Date: Sat, Aug 3, 2013 at 8:32 PM
Subject: Sell Oct $55 calls in Citigroup?
To: DazeTrader

On Aug 3 I noticed this stock chart of Citigroup, and in the short term it really looked like it was topping out and probable to head back down or even just cool off a bit.

C Daily Aug-03-2013

I then looked at the option chain for Citigroup and came to the conclusion that October $55 calls would be a good contract to write to profit from this idea.

Now unfortunately come Monday morning I totally forgot about this idea because I was watching other stocks. But I will show you how much you might have gained from this idea if you had put on this trade.

Sell Oct $55 calls in Citigroup

C Daily Aug-11-2013



Citigroup (C) — A LONG term buy & hold?

I was just flipping through a few bank stocks and paused when I came across Citigroup. The chart sure looks like there is plenty of room to travel back up.

On the attached chart, you can see approximately 4 times where the price has tested $50 level within the last 5 years.

It looks ready to breakout past $50 within the next few weeks / months, or even days.

From an “all time history” perspective, Citigroup’s chart looks like a good buy & hold.

(click image to enlarge)
(click image to enlarge)


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A look under the hood of how a penny stock pump n’ dump scheme is orchestrated.

If you were ever curious how a penny stock promotion is orchestrated, read the following SEC litigation. You will learn how they set it up and how they execute it.  This one CEO was basically in charge of the following companies: GELV, USOG, MNDP, DTRO, WYCT, WNCG, MCEA, ISIM – and running a huge penny stock pump n’ dump scheme.

Here is the SEC litigation, it’s very interesting I might add.



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PLSB formerly known as Darlington Mines Ltd. ?!?

Shocking information._I wonder if-you knew the truth before-investing in this company.

Yesterday I was reviewing some news / information and doing some due diligence on PLSB. I went to OTCmarkets.com and clicked on News for PLSB. http://www.otcmarkets.com/stock/PLSB/news

The upper most article declare Cease Trade Order! 

Within the cease trade order, it is talking about a company called, “Darlington Mines Ltd.” —- wait a minute! I thought this stock was called, “The Pulse Beverage Corporation” involved with selling lemonade beverages???

Does this mean PLSB is actually an old washed up company that used to be involved in the mining industry??? What are they doing now in the beverage market?

Hmmm. sounds fishy. time to do more due diligence for me…

3 year weekly chart
3 year weekly chart

Cease Trade Order

May 05, 2009
OTC Disclosure & News Service

Vancouver, BC, Canada –
British Columbia Securities Commission
Cease Trade Order
Darlington Mines Ltd.
Section 164 of the Securities Act, R.S.B.C. 1996, c. 418

1 Darlington Mines Ltd. (Darlington) is an OTC reporting issuer under BC Instrument 51509 Issuers Quoted in the U.S. Over-the-Counter Markets.

2 Darlington has not filed:

1. a comparative financial statement for its financial year ended October 31, 2008, as required under Part 4 of National Instrument 51-102 Continuous Disclosure Obligations (NI 51-102),
2. a Form 51-102F2 Annual Information Form for the year ended October 31, 2008, as required under Part 6 of NI 51-] 02,
3. interim financial statements for the financial period ended January 31, 2009, as required under Part 4 of NI 51-102,
4. a Form 51-1 02F1 Management’s Discussion and Analysis for the period ended January 31, 2009, as required under Part 5 of NI 51-102,
5. a copy of the Post-Effective Amendment to the Form S-l Registration Statement under the Securities Act of1933 that Darlington filed with the United States Securities and Exchange Commission (SEC) on September 30, 2008, as required under section 1].] of NI 51-102, and
6. a copy of the Form 8-Afor Registration of Certain Classes of Securities pursuant to Section I2(b) or (g) of the Securities Exchange Act of 1934 that Darlington filed with the SEC on February 23,2009, (the required records).

3 Under section 164(1) of the Act, the Executive Director orders that all trading in the securities of Darlington cease until:
1. it files the required records, completed in accordance with the Act and rules, and
2. the Executive Director makes an order under section 171 of the Act revoking this order.

4 May 5, 2009
Martin Eady, CA
Corporate Finance

My Brief Due Diligence on Magor Corp. MCC.V (formerly Biovest Corp I BVC-P.VN)

A friend of mine asked me what I thought about Magor Corp MCC.V.

Magor Corp. is a fairly new company by means of a reverse merger with Biovest Corp. The Magor Corp IPO price was $0.59 and started trading on the TSX Venture Exchange on March 25, 2013. At the beginning of June the stock traded down to $0.275, which is more than 50% below the IPO price from just a 2.5 months ago. The company name of “Biovest Corp” makes me think of a company involved with the biotech industry, but now the company goes by Magor Corp. and their primary line of business is video conferencing software. In their own words, “The first cloud-based switched software video collaboration solution.” In my opinion this is nothing more than what Skype and Google Video Hangout already accomplish for free.

So a company formerly involved in biotech has now entered into the technology industry. Sound fishy?

MCC-V Daily


About Magor: Magor Corporation enables people to engage in high-quality visual conversations while simultaneously sharing, viewing and editing relevant collaborative material on desktops, laptops, tablets, smartphone applications, whiteboards and other devices. Magor fits any workflow so that users have the freedom to work together naturally anytime, regardless of location, network or device. Magor’s disruptive peer-to-peer high-definition video architecture eliminates the need for Multipoint Control Units (MCUs), also known as bridges, thus removing the constraints of the traditional video conferencing meet-on-the bridge single workflow model for multipoint session. This provides the benefit of high quality conferencing at a significant lower cost for users. Founded in 2007, Magor launched its first flagship product two years later and in March 2013, Magor announced Aerus™, the first cloud-based, peer-to-peer highdefinition video collaboration solution in the market.

Here is the Magor Corp Investor’s Factsheet: http://www.magorcorp.com/documents/Magor-Investor-Factsheet.pdf

Please read through the Magor Corp Prospectus if you are invested in this company to find out ALL ABOUT THEM.

Since Magor Corp was created by means of a reverse merger with Biovest Corp, I want to try and find out how Biovest Corp’s stock traded. There isn’t too much historical price data or charts, but the little bit I did find painted enough of a picture for me.

Here is the data:

Date Volume Open High Low Close Adj Close*
15-Nov-10 10,000 0.21 0.21 0.2 0.2 0.2
16-Nov-10 2,000 0.2 0.2 0.2 0.2 0.2
17-Feb-11 4,000 0.2 0.2 0.2 0.2 0.2
21-Apr-11 7,000 0.11 0.15 0.11 0.15 0.15
26-Apr-11 2,500 0.15 0.15 0.15 0.15 0.15
02-May-11 6,000 0.15 0.15 0.15 0.15 0.15
03-May-11 2,500 0.15 0.15 0.15 0.15 0.15
12-May-11 4,000 0.15 0.15 0.15 0.15 0.15
08-Nov-11 2,500 0 0 0 0 0
22-Nov-11 10,000 0.03 0.03 0.03 0.03 0.03
01-Dec-11 5,000 0.03 0.03 0.03 0.03 0.03
06-Dec-11 1,000 0.03 0.03 0.03 0.03 0.03
19-Jan-12 2,500 0.03 0.03 0.03 0.03 0.03
24-Jan-12 1,000 0.03 0.03 0.03 0.03 0.03
27-Jan-12 25,000 0.03 0.03 0.03 0.03 0.03
16-Feb-12 5,000 0.03 0.03 0.03 0.03 0.03
24-Feb-12 2,500 0.03 0.03 0.02 0.02 0.02
27-Feb-12 500 0.02 0.02 0.02 0.02 0.02
13-Mar-12 10,000 0.05 0.05 0.05 0.05 0.05
27-Mar-12 1,000 0.01 0.01 0.01 0.01 0.01
17-Apr-12 5,000 0.03 0.03 0.03 0.03 0.03
23-Apr-12 5,000 0.05 0.05 0.05 0.05 0.05
26-Apr-12 5,000 0.09 0.09 0.09 0.09 0.09
30-Apr-12 1,000 0.1 0.1 0.1 0.1 0.1
07-May-12 43,000 0.17 0.2 0.17 0.2 0.2
30-May-12 5,000 0.1 0.1 0.1 0.1 0.1
07-Jun-12 2,000 0.1 0.1 0.1 0.1 0.1

plotted chart


The main thing I get out of the above chart is the strong fact that this Biovest company was nothing more than a low priced penny stock which was very ill-liquid and lightly traded.

Another key thing I look for to identify if a company is legit or not is to simply check their press releases. As you can see below, the company issues numerous and repetitive PRs. Companies that do this are sketchy in my opinion. This is another red flag.


I’m just going to quickly point out my red flags for this company in numbered fashion:

  1. New chart / Company / IPO
  2. Only 2.5 months in, the stock dipped >50% below the IPO price.
  3. Magor Corp. was established via a reverse merger of Biovest. (this is a big one)
  4. Biovest Corp doesn’t look like a strong company either judging by the historical price data and chart.
  5. Magor issues frequent fluff press releases, aimed towards making the company look better than they really are.
  6. The primary product, Aerus, is nothing more than Skype or Google Video, main difference is Aerus is NOT FREE.
  7. Stock promoters / touters are talking up this name on the stockhouse bullboards (easy to spot and HUGE red flag).

In summary, I am fairly certain that Magor Corp. is out to sell as many shares to the public as they can. I highly doubt they are looking out for the best interest of their investors. Unless you really know what you’re doing, or you’re an insider/promoter who knows the companies objectives I wouldn’t suggest investing in Magor Corp.

MCP Unusual Option Activity in the Aug 2013 $5 calls & $3 puts

I noticed this yesterday in the MCP Aug 16 2013 option chain.

A trader bought-to-open the Aug 16 2013 $3 puts on the $0.11 offer. The trader also sold-to-open the Aug 16 2013 $5 calls on the bid at 0.71-0.72. These were both new opening positions, confirmed by the open interest values that update each new day. This trader is betting that MCP will close below $5.00 by Aug-16-2013.

EarningsWhisper.com currently has MCP next quarterly earnings with a date of Aug-08-2013, this is unconfirmed at the present time, a rough estimate.

Screenshots with the proof are below.

Captured on June 25 2013
Captured on June 25 2013
Captured on June 26 2013
Captured on June 26 2013


On June 21 2013 I reviewed the chart of MCP and the following was an email I sent to my fellow traders:

———- Forwarded message ———-
From: Dazetrader
Date: Fri, Jun 21, 2013 at 9:48 PM
Subject: MCP – ready to buy.
To: xxxxxxxxx

After reviewing the pump n’ dump UNXL, MCP came to mind, I haven’t traded it since it’s last nice breakout from $6 to $8.

A quick glance at MCP and the chart is actually surprises me in a good way. Seeing how well MCP is supporting the $5 level with the recent sell off in the SPY makes me become very interested in owning some MCP stock. Especially given the fact that there is still 30% of the float that is sold short while the stock is finding support in this market sell off. Almost makes me want to go out and buy MCP near $5 asap.