As I posted on my Twitter profile a few hours ago “I take delight in exposing blatant pumps, stay tuned for some exciting research on Kraig Biocraft Laboratories Inc (KBLB) (I’m short a bit), gotta love accounting issues!”
And assubscribers and know I sent these trade alerts earlier today:
: : shorted 72k KBLB at .147, pure pump, goal is 10 cents/share or under, shares at IB/broad street
: shorted 25k more of KBLB at 0.148 on morning spike, now short 100k, volume fading fast, cant even stay positive, still think it tanks later today
…because this HUGELY flawed company is up 1,500% in the past few days:
UPDATE 2: Shorting at 15 cents/share turned out to be decent, but not great…how I made $4,000+ short selling this stock (see all my KBLB trades and those of my subscribers), but I also sent out alerts like this past few days:
: reshorted 60k KBLB at 20 cents/share via IB, goal is 10-15 cent/share in the next few days, company up due to spam, “press conference” tomorrow is a joke
: out of LQMT & REDF for small losses on both, shorted 60k KBLB at .23 as i think it tanks big next 2 days
…purely due to overly positive news releases coordinated with promotional mailers that carry this purposely-hard-to-read disclaimer that is a JPEG, specifically created so as not to be searchable by Google or able to be copied:
This is what the important part says “This featured company is paid advertising not a detailed financial analysis of the company. IFRC (Publisher) has been indirectly compensated to publish this newsletter as they are a shareholder as set forth below. Publisher owns directly and/or indirectly 6.5 million shares and 3 million warrants to purchase shares with a .02 strike price and a cashless provision. Publisher will be selling its shares of KBLB during this campaign at prices that may be below its target prices as it deems necessary. So while Publisher is telling you to buy they are selling!”
I don’t know how this blatant pump (promotional mailers filled with best-case scenario purposely ignoring all red flags) followed by the dump (publisher selling directly into the positive mailers…even admitting it in the disclaimer!!!!) is legal, but until the SEC actually begins doing its job, subscribers to my 4will learn how I short every last one of these carcasses and whether I trade them well or not, understand that they all collapse 50-6-70-80-99% within weeks and months because the buying is pure manipulation.
Readers of my blog know just the other day I exposed Sunvalley Solar Inc. (SSOL) for the pump that it was, saying it would drop 50% or more and within two days, its done exactly that. Aside from my $3,500 profit shorting, I’m even more proud that students of my 4 profited too, check out all their Sunvaley Solar trades
Worse, an unheralded SEC filing from late August details KBLB dismissing their accountants (huge red flag) and some very serious accounting problems:
During the fiscal years ended December 31, 2009 and 2008 and through the date of dismissal, Webb & Co. advised the Company that the internal controls necessary for the Company to develop reliable financial statements are not effective because of material weaknesses in the Company’s internal control over financial reporting. These material weaknesses include (i) the Company does not have a system in place to ensure all of its consulting agreements are timely reconciled to the financial statements; and (ii) the Company failed to properly account for the embedded derivative liability associated with the CEO’s employment agreement in the Company’s quarterly and annual reports.
So will KBLB drop big today? Possibly, but not definitely–especially considering how much of a fight its putting up.
but whether it collapses Monday, Tuesday or Wednesday of next week, once the promoter has sold their roughly 9.5 million shares, this thing will likely crash because after all the hype is said and done, this is nothing but a wannabe company which Yahoo! Finance says has one employee, but message board posters are saying there’s 3…just like SSOL.
Months from now, the chart of KBLB will likely resemble eerily similar multi-day pumps of the past Heli Electronics Corp. (HELI)