UPDATE: MSEH did drop 50% within a few days of this blog post, The Dallas Morning News even wrote an article about my accuracy in predicting the drop HERE and is now down 99% after an SEC investigation.
I wrote this post last night on March 22nd, didn’t expect to find any shares to short, but todaycame through and as of when this article is published, and subscribers know I am short, having shorted 10,000 at $3.375 at 12:40pm-ish EST…for the next hour it spiked to $3.50ish, but I held firm knowing it’s just one market maker AYME that is holding the bid up…when AYME went away, the stock tanked verrry quickly to $3ish and now it’s been bouncing. Only my subscribers will know in real-time when I cover my position, but as you read the post below, I think you’ll understand why I expect a large drop in MSEH in the coming days:
Because I SIMPLY CANNOT STAND the majority of you my precious any DVD package or combo DVD package and get 25% of whatever you pay rebated to you within 1-2 days of your purchase…purchase any DVD in our online store…contact us with any questionsand subscribers not understanding/knowing the trade setups & patterns that continually provide me with predictable profits, you have until March 25th to purchase
1. As I posted the other day, there are several promotional mailers out on MSEH, some of the SEC-mandated disclaimers are invisible…all posted/mailed out by stock promoter of the year so far… and subscribers know his work well!
Download a PDF version of this post.
2. Forget those wimpy mailers, there’s an even bigger one where “Northbound Marketing Group LTD paid $364,793″…yes $364,000+ paid for mailers….as was posted on a message board for all to see:
3. That mailer makes the EXACT same kind of hyperbolic fluff promises and comparisons to successful investors (now they’re using T. Boone Pickens, before it Was Buffett) just like Americas Energy Company (AENY), NXT Nutritionals Holdings Inc. (NXTH), Clear-Lite Holdings, Inc. (CLRH) and Jayhawk Energy Inc (JYHW) each of which has dropped 50% from its high
4. Not only is it the same type of mailers, each of these “picks” have enjoyed the EXACT kind of intraday price action…look at MSEH’s 10-day chart pattern and compare to this stock promoter’s prior picks NXTH CLRH, AENY…see any resemblance?
5. Just like with CLRH, AENY, NXTH, JYHW, multiple promotional URLs have been setup to pitch this stock http://www.usagasprofits.com/ and http://www.energyfreedomprofits.com/…same sales copy…yup, these mailers sell a product and that product is the stock…using sales pitches such as:
“Invest now and you could turn $10,000 into $90,900 in just 8 months”
“Get ready for 8-FOLD or more in profits as fast-moving events create a huge opportunity for this small cap energy company…”
6. MSEH appointed former New York Governor George Pataki to their advisory board, read the press release…normally, it’s a good thing to appoint a credible guy like this to your board, but Pataki is no credible guy…The New York Post already did a feature article on Pataki when his image was used to spam and pump PERF Go-Green Holdings Inc. (PGOGE) which at the time was pumped from $1 to $3 (wow, what a coincidence!)…and now trades at 6 cents/share just 2 years later.
7. In a laughable press release yesterday, MSEH featured an engineering review “…prepared by Jeffrey A. Chadwick, an independent licensed petroleum engineer on July 10, 2009, prior to the Company’s acquisition of mineral rights to approximately 3,200 acres in the Java Field. Chadwick’s review was based on an analysis of a 7,000 acre field1, therefore, the Company has adjusted Chadwick’s numbers downward to reflect the smaller acreage acquired.”
Given MSEH acquired less than half, they “adjusted” Chadwick’s review and came up with “revenue over the life of the project to be as much as $405 million gross before expenses, or $332 million net of expenses”
Wow, exciting, right?
Well, Chadwick isn’t so independent anymore and he’s actually part of the company as they note at the bottom of the press release: “Jeffrey Chadwick joined the Company as a member of its Advisory Board in January 2010”
So a company insider did a positive review? Big whoop–the word of anybody associated with these promotional mailer stocks means less to me than a convicted serial killer…that’s no hyperbole, that’s experience talking.
8. MSEH’s latest quarterly report from late 2009 is verrrry illuminating, detailing how some shareholders are in at verrrry low prices, think 90%+ discounts to the current price and they have millions of shares they can sell….hmmmm, think they might be the people paying those stock promoters $364,000+ to send out a bunch of emails, hmmmmmmmm 🙂 Check it out:
On August 31, 2009, the Company completed a private placement of $500,000 aggregate principal amount of MEI Energy Holdings’ 10% Secured Convertible Promissory Notes, at a purchase price of 100%, which, at the option of the holder, are convertible into shares of Common Stock at a conversion price of $0.25 per share, subject to adjustment in certain circumstances as provided therein.
9. Forget shareholders having cheap shares, “IR firms”, literally stock promoters, have a million shares at cheappppp prices, now worth a cool $3 million up from $232,000 in just six months:
In the Merger Agreement, the Company agreed to enter into an agreement with an investor relations firm or firms to be identified (the “IR Consultants”) to provide investor relations services to the Company, pursuant to which the Company will agree to deliver to the IR Consultants an aggregate of 1,000,000 shares of Common Stock (the “IR Shares”); 70,000 of those shares have been issued to an IR Consultant, and 930,000 have been issued and are being held in escrow pursuant to an IR Shares Escrow Agreement with Gottbetter & Partners, LLP, as escrow agent. The shares issued and held in the escrow account for IR Consultants’ future services are initially valued at $0.25 per share or $232,500. The Company has recorded the 930,000 shares as prepaid expense as of September 30, 2009.
10. Oh I forgot, MSEH doesn’t have much cash (I have more in myaccount!), they admit they’re gonna need $1+ million just to make it to the end of this quarter and then $10+ million to complete their ambitious project…gee, it sure is good that their stock has risen 10x just when they need to raise a lot of capital huh? 🙂
At September 30, 2009, we had cash and cash equivalents in the bank of $103,894, as opposed to $311,947 at December 31, 2008. Cash decreased by $208,053 to $103,894 at September 30, 2009 compared to December 31, 2008 primarily due to expenditures for the Main Pass Project prior to it disposition and normal general and administrative expenses of the Company.
We will require total funding of $1,000,000 to $1,500,000 to provide the capital for the initial phase of development of the Java Field, as well as the general and administrative capital needs of the Company through the first quarter of 2010. The initial phase of development of the Java Field will include an attempt to enhance the existing production in the Java Field as well as testing of the Marcellus Shale, either by re-entering an existing well or by drilling a new well. That effort will begin prior to the end of 2009 subject to the availability of funds. Additional capital of approximately $10,000,000 will be required to fund the second phase of development of the Java Field property, and we plan to raise that capital through additional sales of equity or debt securities in the fourth quarter of 2009 or the first quarter of 2010.
What will mark the exact top of this promoted piece of CRAP? In the past, The Dumbest Person In All Of Ginance Jim van Meerten has put out buy recommendations just 2 days before these promotional mailer stock collapse, but thanks to my podcast debate with him after which I questioned why he was attacking me and calling for an SEC investigation on me when all I did was dissect the SEC filings and expose the promotional mailer? If he had nothing to do with it, shouldn’t he be more upset with the stock promoters who used his name on their “pump” mailers, I doubt he’ll be dumb enough to write about these kinds of stocks in a positive light again (if he does, then he’s DEFINITELY in on it…or maybe a stock promoter kidnapped his daughter or something and is forcing him to write absurdities.
Whatever happens,and PennyStocking subscribers will continue to enjoy real-time commentary on this promoted stock and every other one in the future too…only they will know my real-time trades and expectations.
Funny thing is the MSEH daily chart is EXACT to what I teach in remember these charts?, especially …no different than pumps of the past,
Disclaimer: As of the publishing of this publicly available research, I am short 10,000 shares at $3.375…onlyand subscribers will know my expectations and trades on this going forward.