Let me start by saying I have no problem whatsoever with penny stock promotion—these tiny / failing / fraudulent companies need all the exposure / hype they can get or else they’ll never raise any capital and fail / be exposed as the frauds that they are soon rather than later. But I do take offense when entertainment outlets like CNBC try to pass themselves off as credible researchers. As I’ve posted HERE and HERE, their bumbling has hurt too many investors and they’ve helped make people afraid of penny stocks—which I cannot permit.
Now, one of their wannabe journalists / entertainers, Sri Jegarajah, has written the single most naïve penny stock article I’ve ever read, “Wild About Rice” in which Sri mistakes paid-for stock promotion for credible research forcing me to explain the rules of the game to all the poor schmucks who mistakenly view CNBC as a credible source.
Besides quoting CNOA’s CEO (we all know how useless that is, what’s he gonna admit the company’s a pump and dump scheme?), and a Seeking Alpha article—whose writers are no more qualified than bums begging for change on the street, Sri proudly quotes Source Advisors, forgetting (not realizing?) to mention they’ve been paid $25,000 “by a third party” (pump and dumper, cough, cough) to publish their BS report. And, as if to repent for his sins, Sri closes out the article quoting Patrick Murphy of Murphy Analytics who was only paid $1,000 for his efforts (scroll down to the bottom and be better than Sri, aka read the disclaimer).
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Sorry Sri, I’m gonna have to take you down on this—you’re either lazy, naïve, stupid or corrupt—take your pick–no matter how you slice it you should be fired. You’re no journalist, you’re an entertainer, go learn to play a musical instrument, maybe you won’t hurt as many people in that racket.
And don’t even think about coming at me with CNOA’s earnings report. Yes, to naïve investors, it looks beautiful, but they forget that China—and more specifically—Chinese penny stocks—are beautifully corrupt. Any and all figures are sure to be exaggerated—at best—and totally fraudulent at worst. The only reason I don’t bother digging cuz I don’t feel like getting my kneecaps busted by these promoters. Not that it would even do any good because the only thing that matters here is QUIN. They are the market makers who blatantly control where this stock goes. They can pump this thing up to $3-$4 if they want, they don’t even have to pay off idiots like Sri, at least probly not (I’m not sure of what Sri’s deal is with them).
As if it couldn’t get any worse, pumpers are spreading false rumors that Jim Rogers likes CNOA—all because this article made the amazing connection that CNOA is a Chinese play and Jim Rogers likes China (no direct connection whatsoever!).
And you guys wonder why I’m so cynical—behold the joke that is the finance industry!
Disclaimer: I have no position, QUIN hasn’t pumped the stock up enough to interest me to short…yet, nor would I ever buy this stock cuz I like to sleep well at night! I just enjoy cutting through the BS.