Justin Bieber’s Penny Stock Pump: The Latest Celebrity To Fall Prey To A Failing Company With Paid Promoters, 50+ Financings In 2 Years, Just $97k In Cash, Sales Dropping 48% & $10 Million In Annual Losses

UPDATE: OPMG sent me a cease & desist letter to take down this post, I refused, within a few months they went bust, their website ceased to work, the product Bieber was promoting is no longer sold…meanwhile I made 54% in 2011, 38% in 2012, 66% in 2013 and am up 34% in the first 3 weeks of 2014 and I now have 2 millionaire trading challenge students, see millionaire student #1 HERE and my 2nd millionaire student was featured HERE by CNN and we were just on FOX together:

When Options Media Group Holdings, Inc. (OPMG) announced a deal the other day with Justin Bieber, several news outlets were quick to applaud the message of “no texting while driving”, but they failed to look into the details of the deal.

I take great pride in exposing penny stock pumps, especially when celebrities receive millions of shares in compensation to back the too-good-to-be-true products, so investors and traders can learn EXACTLY why penny stocks are so predictable (contrary to what most people believe), but it’s sad when a hot upcoming brand like Justin Bieber gets involved.

No different from when I exposed Shaquille O’Neal’s penny stock pump on a company claiming they made the next “Splenda” (they eventually failed but Shaq sent me a cease and desist letter anyway in which his lawyers couldn’t properly spell the word egregious (Tip to wannabe lawyers: there are no As) and his deal with the company became worthless as the stock dropped from over $3/share to its current price of just 8 cents/share, his 2nd straight deal as company spokesperson to lose 99% of its value)

How Pump & Dumps Pan Out

How Pump & Dumps Pan Out

Now it’s Justin Bieber’s turn to learn about partnering with questionable penny stocks.

So to Bieber and clan I say: research a company IN DEPTH before you partner with them and become a 16% owner…oh yes, Justin Bieber was given 121 million shares at roughly a penny per share, not to mention he will earn royalties on every piece of software he sells in exchange for his promotion which could mean a few million more.

It’s ironic that the product he’s promoting – seemingly helpful software that disables text messaging while you’re driving – just did a deal with the same grocery store chain as Shaq’s pump & dump.

And like Shaq’s pump, Bieber’s pump’s “product” has been on the market for a while now…with terrible results…sales dropped 48% year-over-year compared to the 60% year-over-drop in sales of the product Shaq was pitching.

But while Shaq’s pump involved a multi-million dollar email promotional campaign using his image to spike the stock price, this Bieber deal so far has only included press releases and propaganda blog posts by a penny stock promoter HERE and HERE

(yup, all in the last 48 hours)

Scroll down to the bottom of that press release and the blog posts and you’ll find they were written by Emerging Growth Research, LLC, a third-rate penny stock promoter whose disclaimer says in very fine print that they were given 4 million shares of OPMG stock.

And this is the main problem with OPMG…sure, sure, they’re on the brink of bankruptcy (or they were B.B. (Before Bieber), their product is questionable, they’re based in Boca Raton (US home of questionable companies) and it seems no different than the Shaq pump, but there are SO many people with millions of shares to sell as this company has done over 50+ financings the past 2 years that it’s gonna be pretty difficult for the stock to ever skyrocket as all those insiders will sell on any price increase.

Currently, thanks to Bieber’s stake there are just under 500 million shares outstanding so, at 3 cents/share, it’s roughly a $15 million company, but when their many preferred stock deals come due, there will be closer to 750 million shares outstanding…and given that they need money badly, I wouldn’t be surprised to see over 1 billion shares outstanding soon, in the exact same vein as the blatant pump Spongetech Delivery Systems, Inc. (SPNGQ), which is currently at 0.0006 cents/share and insiders have just plead guilty to perjury.

(that pump claimed they were gonna sue me for a “short & distort” scheme due to articles by a NY Post Reporter and myself (although I actually never talked or emailed with Kaja Whitehouse and SpongeTech never served me…perhaps distracted by their executives being on trial for all sorts of crimes)

OK enough blabbering, let’s get down to the business “fundamentals” of Options Media Group Holdings, Inc. (OPMG) thanks to their latest SEC filing

-Enough cash to last for roughly 45 days more (June 30th, 2011)

-Over 50 financing deals in the last 2 years to stay afloat (Guess who will be the first people to sell into this pump as their shares become unrestricted?)

-Just $97,000 in cash in the bank

-Annual sales dropped from $1.6 million to roughly $800,000 last year

-Annual losses of $10 million

-Trying to borrow $5 million to stay afloat

So the numbers are pretty bad, but that can be said about any penny stock, right? It gets worse: Options Media Group doesn’t even own the DriveSafe technology, they simply license it through as company called CSI which then licenses it from recent IPO NetQin Mobile Inc (NQ) in a deal signed last April

So if somehow you believe in “the technology” and the movement that Bieber will undoubtedly try to make this become, the firm that actually makes the software would be more of an investment than OPMG…although NQ’s IPO bombed due to some fraudulent practices accusations which led to many operators dropping NQ’s software from their systems

In addition, the DriveSafe technology is not new as The Wall Street Journal highlighted nearly half a dozen competitors 2 years ago, all of which are better funded than OPMG, one of which just raised $1 million a few weeks ago (and unlike OPMG that company doesn’t owe their management hundreds of thousands of dollars in salary so the $1 million raised can go directly to the product and marketing)

Remember much ado was made about rapper 50 Cent using Twitter to promote a penny stock in which he owned 7.5 million shares, but young Justin owns 121 million shares of OPMG!

He’s already posted to his 27 million fans on Facebook and the stock has quadrupled from 1 to 4 cents/share, a nice $3+ million increase in Bieber’s stake in the company and he didn’t even include the ticker symbol or tweet to his nearly 10 million Twitter followers…yet.

And it’s important to note, OPMG didn’t spike on the initial Bieber SEC filing or even the press release, the big surge came mid-day at 1PM EST, usually signs of an email blast going out…perhaps by the compensated stock promoter? Just guessing…

Justin Bieber Penny Stock

Justin Bieber Penny Stock

Long story short, with the stock trading at roughly 3 cents/share, down already from its 4 cents/share highs (with nearly 200 million shares traded over the past 2 days, someone’s selling biiiiiiiiig), I have NO position as it’s not a great risk/reward to shorting here so I hope OPMG and the Bieber clan hire some real stock promoters like NXTH, Shaq & SpongeTech did and if they do – perhaps around the conference call they’re hyping on May 25th — I might even BUY any breakout as there are far more idiots in this world (read: teen girls and those close to them) than those who will read this blog post or understand what a pump is (contrary to most penny stock traders’ beliefs, the movie Boiler Room BOMBED.)

That said I HAD to expose this joke of a company, to help the many thousands of bagholders who are too incompetent and illiterate to do this kind of research, inevitably putting their meager life savings into this “Justin Bieber stock”.

Posted in Basics, Celebrities, Penny Stock Scandals, Penny Stock Victims, Videos

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  • Robert

    Are you related to Wanda Sykes? 

  • Ben

    but tim, does it matter if other companies have the technology, or if there are other apps out there?  because if i had to bet money on which company would do better, i would bet that the company with justin bieber promoting it would do better.

    i think this pump is just starting.  i hardly think they’d squander this opportunity for a penny stock monster this quickly.

    in two weeks when they’re supposed to launch the app with bieber, i’d guess that the PPS won’t be as low as it is today.

    your thoughts?

  • Jojo

    Lemonade or Blueberry?

  • cheerup

    Tim, you sound a tad disgruntled.  Are you trying to save the world, or get revenge?

  • http://www.timothysykes.com Anonymous

     ben read the last 2 paragraphs before asking me to repeat myself

  • http://www.timothysykes.com Anonymous

    yeah she’s my mother u dumbass

  • http://www.timothysykes.com Anonymous

    lemonade

  • http://www.timothysykes.com Anonymous

    not disgruntled at all, i just expose pump & dumps again and again and again, say thank you

  • its me, timmy!

     how much wood could a wood chuck, chuck, if a wood chuck were a penny pumpin wood chuck maniac! 

  • Scum

    Timmy boy you obviously have a problem with someone at the company. 
    Seems to me like you need someone to smack the shit out you?
    You look like a cross between Erkle and ferris bueler.
    People have a lot of money invested in this company and we don’t 
    need you running your mouth. 

    BE CAREFUL!!!!

  • http://www.timothysykes.com Anonymous

    nah just the latest blatant pump, no different than NXTH MSEH AENY SPNG HHWW KNKT JAMN i’ll expose every last one

  • http://www.timothysykes.com Anonymous

    nah just helping people understand how this game works, you’re welcome

  • http://www.timothysykes.com Anonymous

    i dunno

  • Bclem0001

    HAHA …this is great, thanks for that … and thanks for the info. Hopefully this is my next big money maker…

  • http://djsmooth.us/ smoothstudios

    I really hope you were being sarcastic… 

  • http://djsmooth.us/ smoothstudios

    YOU ROCK TIM! 

  • http://www.timothysykes.com Anonymous

     i’m not a lawyer so i dont determine if the law is broken…what i do know is a conflicted stock promoter has been hyping biebers involvement in a company that is near bankruptcy (pump)…as the stock has spiked, there has been tremendous selling (dump) and both activities will likely continue…see definition from investopedia:

    A scheme that attempts to boost the price of a stock through recommendations based on false…

    just like shaq, u’ll see how this plays out, i’ll probly get a cease and desist, then the bieber team will do more research and back out of the deal once they realize they’ve been had, the company will go splat, i’ll brag about how the whole thing is predictable, life will go on and then the next incompetent-at-hardcore-research celebrity will sign another deal and the whole pattern will repeat…heck as i state i might even buy OPMG on a breakout if they hire the right promoters

  • LOLZ

    Maybe I read this wrong, but opmg’s product stops you from texting while you driving? I already have something that does that and I got it for free, self control. 

  • http://www.timothysykes.com Anonymous

     correct tons of applications like it, opmg doesnt even own the product, they just license it from NQ

  • http://www.timothysykes.com Anonymous

    i’m not censoring your posts u moron, we dont allow the posting of links in comments, u censored yourself and are too dumb to realize it…and you forgot to say you’re welcome to me for educating u

  • Hbdcvp02

    Many companies have more to the meal than just what you read. Future sales are what they are aiming at and what expectations are going to be. If you look to the past remember Bieber was not part of the company. Moving forward I bet they will increase sales ten fold in the short term. 

  • Acbower

    Thanks for telling us about the company. 
    My folks just don’t learn..or don’t want to admit being sucked in.. 

  • MJL

     Great post (another), and as always…muchas gracias mi amigo.

  • http://www.facebook.com/tallinder Tom Allinder

    Maybe I am off-base but from my experience (14yrs or so), most of these companies on the pinks and OTCBB have “management teams” that are of questionable character at best. They use their companies as their own private ATM machine.

  • Christian

    Nice report Tim. I’m not here to stomp on your research, but I’m semi-shocked that the Bieb’s team, presumably filled with some intelligent folks, overlooked many of these issues you point out. They scream stay away.  And I’m surprised Bieb Inc would take such a risk like this, it’s not like the young fella is hurting for cash. 

  • mikey

    Lol, you only returned 57% in 2010? I did over 300% following basic Darvas technique.

  • Mastertrader1

    i see weekly charts may go higer why dotn we go long and sell it at 50 centsthen use profit to mega short back to 0 ,, lol

  • Jim

     So short it big boy!

  • Mr. Roberto

    Sykes although your posts are very convincing, they leave a lot of room for  rebuttal…

    For instance… You mention that OPMG’s products have been on the
    market for awhile now… But you forgot to mention when this whole “texting
    while driving” issue has became a “big deal”… It was not until
    recently that texting and driving has been considered “fatal and
    dangerous”… And people have not begun to get “serious” about it until
    recently…

    OPMG seen a need in the market before the “hype” even begun… That is
    what “big” companies are all about… “Solving problems and creating
    solutions”…

    Furthermore…. The licensing… Many companies do not own the product they
    sale… They only own the licensing… Xbox360 Kinect doesn’t own the “chip” which is the main component in the system… They only have a license for it…
     

    Shaq, Fergy, Carmen Electra, Etc… Have nothing on the “Bieber”… A
    celebrity endorsement of his public standings (especially when promoting
    a product with such a serious cause) can be a high impact for the
    entire nation…

    On another note… OPMG is changing it’s name… Giving it a more “global”/”household” name…

    OPMG only has enough capitol to last until June 30th 2011… That’s
    the only “plausible” cause for such drastic postings (in my opinion)…

     “Personally” I disagree with you on their standings …
    What is a mere 5 million dollars to a “global” company? It is just
    pennies… If they can raise enough capitol to keep them in business
    (which they surely will)… Imagine where they can/will be in the next few years…

    With a promoter like “Bieber” the money should not be an issue…

  • http://www.timothysykes.com Anonymous

    congrats but are u short biased in a bull market like me? NO do u have thousands of subscribers and spend most of your time blogging, teaching, coaching and doing webinars and DVDs for them? NO. so i accept your apology for being so ignorant and encourage u to post your gains on http://profit.ly so u’re not just another troll who claims big gains on message boards but cant back it up

  • Esteban Zuluaga

    Tim have you checked some Canadian penny stocks like Alange Energy, Cancol Energy, Pacific Coal?

    They’re run by a lot of people you may dislike 

  • Ben

    so what if there are tons of applications like it?  i can’t name ANY.  the only one i can name is PHONEGUARD.  why?  because of justin bieber.  that’s the point.  his endorsement puts their product above all the others.  that’s like saying, “there are tons of other no-name burger joints in LA, why should the one that’s being endorsed by Justin Timberlake make it any more successful or popular?”  - – simple: the other burger joints aren’t being endorsed by a super-celebrity – - the other apps that are currently on the market don’t have justin bieber endorsing them.  

    so what if there was an article TWO YEARS AGO about similar applications?  what if there was an article two years ago about all the apps that were similar to ANGRY BIRDS?  does it matter today?  are those apps still around?  can you name any of them offhand?  do any of them have a celebrity endorsement that puts them significantly above the rest?  i hope you understand my point here.  

    to venture away from apps, let me give you a different (but valid) scenario:  what if ten years ago there were several other similar products on the market that were thus far more successful than the george foreman grill?  by your logic, the george foreman grill should have tanked, because there were already semi-successful products on the market that were (presumably) doing fine without any celebrity endorsement.  let us also suppose that the company that produced the grills didn’t even own the patented design, but merely licensed it from another company.  do you think that mattered?  millions were sold, and everyone involved made a bundle – - regardless of who licensed what to whom.i suppose if bieber were instead endorsing NQ, you would turn around and say, “NQ doesn’t even make any money!  they license it out to a company called PhoneGuard”show me the terms of the licensing agreement wherein it shows that PhoneGuard doesn’t make squat from it, and maybe i’ll appreciate your point a little more.  so what if they license it from NQ?  what if they get to keep 90% of the profits?

  • http://www.timothysykes.com Anonymous

    its just a celebrity pump, funny how many people defend it…tell me why has there been so much selling if its got such a bright future…to go up a penny it needs to trade 100 million shares LOL

  • http://www.timothysykes.com Anonymous

     nah read the last 2 paragraphs if u’re literate

  • mr perfect

    Tim is the real deal mang y is everyone acting so suprised. Celebs, wall street guys are all scums if you want to believe in the hype go ahead and lose your money go long. This seperates the pros and the joes Well see who is who in the end.

  • Mr. Roberto

    I was not trying to criticize your professional opinion… I take your advice with a grain of salt as you are much more educated on these matters then I am…

    Furthermore, I was not necessarily “defending” or “pumping” the stock (Just giving my opinion and stating that your post has a lot of room for rebuttal)… Hype alone can drive the charts wild… And that is “basically” what I am basing my opinion on when I say I can see this stock going some where…

    100 Million shares? Maybe… But doesn’t that also pertain to exactly how many shares bought per holder? 100 Million shares is nothing when you consider the “hype” and the amount of people investing… Right?

    We have already seen massive amounts of trading… I for one… Will keep a close eye on OPMG…  I don’t have much invested (I’m a small timer… And wouldn’t put my life savings on it)… But I have already made a handsome profit based off of the “hype” alone…

    Your opinion matters… And I will take all of the structural criticism from you I can get lol… But at the same time… As a “small time” investor… I can see money being made… and suckers being had… I believe this stock will surely surpass the  recent gains… And I will at least double/triple my money…

    In all honesty… Do you think I am wrong?

  • Guest

    Tim Do a piece on BCON.  My nickname for it is BigCON…

  • Alex Wright

     Hey Tim, 

    What do you make of the Linked-In IPO?

    Do you ever get on IPO’s or only stick to shorting penny stocks?

  • Freerad

    I think it’s a brilliant strategy getting Justin Bieber to promote Phoneguard’s product. It’s an amazing technology. If their drivesafe product does what it says they may wind up on top.  I guess time will tell.

  • notinterestingatall

    If shorting penny stocks are so good then will I be able to afford a trip to Korea?  I kinda wanted to check out some bikini chad Korean ladies in the summer!

  • Freerad

     yeah but million of teenagers aren’t gonna download the other apps.

  • boredtrader

    So if you bought OPMG above .04 what would your sell target be? .10? Higher? Thanks!

  • Aron

     i am up 45% on OMPG since your bashing post, watch n learn Tim

  • http://www.timothysykes.com Anonymous

    congrats now perhaps u can afford to go learn how to read because a.) i wasnt bashing i was showing u research straight from the company’s filings and when this company fails as it inevitably will, YOU WILL LEARN b.) the last 2paragraphs say pontential buy not short…good luck in life, reading is fundamental

  • TakingRisks

    Why do people fall in love with the stories… Just play the ticker and move on…

  • TimSucks

    This dumbass trades on Fake Paper Money! Has been wrong for the past two weeks on every single call in his Newsletters. No one respects him, and since he lost that 500K, he is trying to bring his revenue from 100% blogging vs trading. Worst premium service on the planet. 

  • http://www.timothysykes.com Anonymous

    haha every trade I report is 100% real…the secret to my online success is simply telling the truth, imagine that! sad that so many other trading websites can’t/don’t do it…and i made $255,000 in REAL trading profits last year, early up $155,000 in 2011…I wish u were right about it being fake paper money, perhaps that would’ve made the REAL six figures I paid in taxes last year and now quarterly this year fake paper money too…c’mon man, ignorance is no excuse, stay in school…and if u were a promoter, please pump up OPMG so it’s worth buying the breakout and shorting its inevitable collapse, gracias!

  • Blastedleezy

     It is an exclusive agreement in the United States and Canada. Do you know what exclusive is? Do some research next time, sport.

  • Aron

    i have no intention to hold this forever, but who cares about fundamentals??? why should i care?? this is stock market! fundamentals doesn’t matter! this puppy have already given me 45% return in 2 days, why should i bother about how long this is gonna survive? Watch n learn timmyyyyyyyy

  • Aron

     I am up 60% as we speak! Hope you “watched n Learned” from me Timmy hahahahahah

  • Daimeow88

    If they were to pump, then how high would you said the stock would go. around 10 cents? then timber!

  • http://www.timothysykes.com Anonymous

    random comment troll, post all your trades on http://profit.ly and lets se how u do, zzzzz

  • http://www.timothysykes.com Anonymous

    u are not the only one who reads my blog, many longterm suckers are now educated, you’re welcome

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  • Aron

    thanks for NOTHING lol

  • Pingback: The Justin Bieber Penny Stock Saga Continues: Business insider & Frontpage MSN Money, The Company Just Discovered Their President Is Convicted Felon!

  • Marko_ramieus

    Tim – The 10Q was released last night.  Dont you think your story should reference the financials from that instead of the 10K?  The cash position is much higher than you listed above.

  • iEatUrLunch

    i don’t think that kid has any knowledge of what stock is. He should endorse a shampoo or shit like that. 

  • QWAZY34

    Ive been saying that this company is a fruad from day one.. plus the software isnt his there a licensed reseller of it for the USA and Canada, he just put a pretty box to it.. its a scam, neveda corporation  come on guys do some research.  CAN YOU SAY SCAM.  for a product that doesnt even work that good because of activation codes and other tech stuff i wont get into

  • SiteHacker

    good thing I live in NYC and know what you look like.

  • Enron401k

    haha… people investing in garbage penny stocks and then making death threats?? How hilarious. I guess they never heard of real companies with real earnings. Go broke and then go to jail on top of it making death threats. Sounds smart

  • AnthonyD.

    All i can say is i’m getting a kick out of all this. you can’t make this shit up.

  • Guest

    OPMG just increased/doubled A/S to 1.5B … dilution coming… See nvsos_dot_gov

  • http://Ifthens.com Dustin Lumsden

    better sell that baby before it turns into a -60% loss

  • http://www.timothysykes.com Anonymous

    Stock is taaaaaaanking back to 2 cents/share now from its high of 10 cents/share, guess who was right yet again?

  • limitless

    You’re clueless if you think fundamentals don’t matter in a money driven market.  Get educated.

  • mike

    Poor Bieber.  DD is all i can say to all that attempt.  Can someone please look at the FRCN chart and news etc and help me make a better evaluation if this is a company that is going to pop soon or no? Looks to be promising with positive news but I’m pretty new to these penny stocks. Sentiments for FRCN please???

  • John Smith

    why are we communicating on this fags website?  we focus on positive in life, ie- POSITIVE gains, and he waits around to scrape up the left overs off the plate after thanksgiving dinner is served.  Screw the vulture.

  • http://www.daytradingpro.com/ First Hour Trading

    According to the Securities and Exchange Commission or the U.S. Securities and Exchange Commission, any stock is considered a penny stock if its price is below $ 5.

  • Anonymous

    Really, Awesome blog you have post here. Thanks

    http://www.stockprofessors.com