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COUV Stock Halted for 14 Days, SEC Raises Questions

Updated 4/18/2022 5 min read

Corporate Universe, Inc. (OTC Pink: COUV) has been soaring to new highs lately. It’s part of a larger trend where dozens of stocks, in the typically illiquid OTC markets, have come to life in recent months.

At the beginning of December 2020, COUV was trading near $0.02 per share. Yesterday it closed at $0.84, an increase of 4,200%.

The dollar volume for yesterday’s trading session exceeded $15 million as amateur traders have been drawn to these high-risk/high-reward stocks.

There have been plenty of stocks in the OTC with oversized gains the past few months. But there’s a hidden danger that the promoters of these stocks often fail to disclose.

Some companies that trade on the OTC markets have been known to make misleading statements.

Penny stock trader and teacher Timothy Sykes warns his followers on Twitter that OTC stocks can be extremely dangerous to trade. He encouraged his followers to “stay safe” and be “cynical.”

After the markets closed yesterday, the U.S. Securities and Exchange Commission announced it has ordered a 14-day halt of trading in COUV stock, “because of questions regarding the accuracy and adequacy of information.”

In the release, the SEC reports it’s investigating two claims Corporate Universe, Inc. made in two separate December press releases, citing:

  1. “A statement made by COUV on December 1, 2020 that it is currently selling a mask proven to filter 98% of COVID-19 particles and is scientifically proven to kill COVID-19 particles.” (See the COUV release here.)
  2. “A statement made by COUV on December 16, 2020 that it has entered into a definitive letter of intent to acquire a company that holds 30 patents related to carbon ion battery technology.” (See the COUV release here.)

The SEC also appeared to echo Sykes’ warning, saying that market participants “should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”

Trust No One

It doesn’t matter who’s telling you a stock is great — you should never believe them.

Reddit doesn’t know. Your plumber doesn’t know. Not even the talking heads on TV can tell you what’s going to happen next in the market.

The reality is…

It’s the CEO’s job to be a cheerleader for a company. Promoters only make money if they get investors to buy, so they’re willing to say anything and everything to convince people they know what’s going to happen next.

To veteran traders like Sykes, the trading halt on COUV and the ensuing investigation is no surprise. He’s always warning his followers not to get caught up in the hype surrounding penny stocks.

The truth is no one knows what’s going to happen next. No one can see the future.

In order for traders to stand a chance in the markets, they must see through the lies and be cynical about everything and everyone in the stock market.

What’s happening today is no different than what’s happened in the past. Sykes gave a speech in Canada in early 2019. The messages are as true today as the day he gave the speech.

If you learn one thing from the COUV trading halt, learn this: If you expect the worst, you’ll never be disappointed.

It’s been widely reported that over 90% of traders fail to make money in the long run. And most penny stock companies eventually go bankrupt.

The SEC and Sykes agree: When it comes to the markets, trust no one.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”