Wednesday, July 7, 2010

Elite Stock Report: 273% profits in the next 60 days

Well, if you believe today's mail from the "Elite Stock Report", you are not familiar with stock returns, risks, and how stocks are marketed. Today's mailing is from the promotion company "Elite Stock Report", with "Colin McCabe", editor.

The return address on the envelope is:

Elite Stock Report
3120 25th Street South #347
Fargo, North Dakot 58103

But if you subscribe, you send your check for $999 to:

Elite Stock Report Order Processing Center #678
Box 8000
Sumas, Washington 98295

This newsletter is promoting oil and gas exploration stocks traded on the OTC Bulletin Board.  The warning signs:
  • Promoting stocks on the Bulletin Board
  • The "Elite Stock Report" is paid $300,000 by an email spammer, Emma Marketing Services, to promote the stock (it's in the small, gray print).
  • This newsletter promotes nothing but penny stocks.  If it's a penny stock, it's a loser's game.
  • The "promoter" is just that -- he is not a registered representative or an analyst.  Just a guy with a newsletter and a P.O. Box, who will cash your check.
Check out:
  1. An example of one of their touts:
  2. Check out one investigation of the "editor" Colin McCabe. And another one, which located its "headquarters" in a P.O. Box at the UPS store.
  3. When you subscribe, you are sending your check to a business called LetterLock.  This is an all-purpose anonymous drop-off location, conveniently on the U.S.-Canadian border.
  4. The general disclaimer should warn you that you are being sold a bill of goods.
  5. The stock, which is likely really Tuffnell Ltd (not Tuffnell Exploration), is a penny stock, that doesn't have any prospects.  Take a look at its stock price movements and financial statements.
  6. The major holder of this stock is George Dory (who is the Director, President, Secretary and Treasurer), and the Tuffnell is incorporated in Nevada by one of the many registered agents, Val-U-Corp, who serve as the registered agent (a.k.a. fronts) for 4,337 companies, mostly "blank check" companies.
  7. The company being touted, Tuffnell, according to its auditors "As discussed in Note 1 to the financial statements, the Company's absence of significant revenues, recurring losses from operations, and its need for additional financing in order to fund its projected loss in 2010 raise substantial doubt about its ability to continue as a going concern. The 2009 financial statements do not include any adjustments that might result from the outcome of this uncertainty" [from its most recent 10-K report].
Be careful out there. If it is too good to be true, it's a con.

1 comment:

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