Tobin Smith & David Gentry: Often Conflicted & Compensated Penny Stock Promoters [VIDEOS]

Def get on these 7 free video lessons before you turn poor and old like these schmucks.

The other day I was saddened to see Herb Greenberg have to experience the same kind of disbelief as I do just about every day: the amazing nerve of corrupt and conflicted paid promoters who pretend that their research is objective and good when anyone experienced in the stock market knows paid promoters are nothing more than human slugs for “picking” stocks they get paid to pick.

As trading challenge students have learned time after time, no matter what these corrupt paid promoters say, if you look at the stats and you talk to market veterans, you will discover paid promotiosn almost always ends in failure for these stocks. After all, why is a company or its shareholders paying for “research coverage” instead of spending it on marketing or building better products…especially when the vast majority of time, the marketing budget of these promotions matches or exceeds the company’s revenues (AENY, MSEH, NXTH, KYUS, HYHY, EMGE, ALME, JYHW, UOMO, CPOW, CPMCF, GRYO and 50 others come to mind).

And mind you I have met paid stock promoters in person and every one of them has claimed to pick “only the best deals” and that I forget “the dozens of deals we turn away”…1and that they’re not doing anything wrong…and that short selling pumps is just as bad as pumping…all of which is 100% HORSESHIT….the deals these guys all pick are absolutely terrible and I’ve never heard of or encountered an ethical or non-greedy stock promoter who would ever turn away a deal unless there’s too much heat on them from regulators.

The ONLY reason a paid-for promoter ever covers companies that don’t pay them is to bring an ounce of respectability to their business and so they can claim on TV interviews such as the one below that they’re “Hybrid Firms”. Remember SEC-busted Jonathan Lebed employs the EXACT same strategy, this is penny stock promoter lesson #136 (I got my hands on the handbook) (if you actually believe there is a penny stock promoter handbook, you’re probly one of Tobin Smith’s followers…c’mon, smack yourself in the head, you deserve it)

But as PennyStocking Silver and TIMalert subscribers know that if you are truly a successful trader or investor, even a lowly penny stock short seller, then you’ve made enough money NOT to have to take any compensation for your picks…EVER…no matter whether it’s in the form of stock, cash or marketing expenses paid on your behalf.

Watch the great video of Herb & CNBC crew actually getting it right and trying to nail the human slug David Gentry, President of the often-compensated-and-conflicted-as-stated-in-their-own-disclaimers-which-sadly-far-too-few-people-ever-read “IR firm” Red Chip Companies

I make the analogy to slugs because like slugs, as you can see how Gentry wormed his way out of answering directly, they are quite slippery when being questioned…

The funny thing is that when I was a naive believer of penny stock companies, I used to attend the decadent Red Chip conferences in Florida and NYC, always fascinated by the big ideas these companies were working on…only wising up after 2-3 years when not one of the several dozen firms ever succeeded…in fact, most going bankrupt or having their stocks drop 75-99% due to toxic financings usually pulled off by these snakes.

And no try as I might I can’t talk polite about these “people” for I see the effects of their misinformation and always-playing-dumb-and-innocent as I am the one who gets contacted again and again and again by people who believe these paid promoters gross propaganda which often promises 1,000% return on investments and absurd price targets exponentially higher than the current or any future price the promoted stock is ever likely to attain.

(FYI Red Chip is part of the illustrious crowd of BiomedReports, PennyStockChaser, Shaquille O’neal (before his stock dropped 95% and he disappeared) and Oliver Velez to threaten this blogger with cease and desist orders)

Which brings me to my point about Tobin Smith, TV regular and regularly compensated penny stock promoter…see one of his typical sales pages and focus on the disclaimer

As exposed by StockGumshoe back in 2009 and TheStreetSweeper in early 2010, Smith has long promoted China Tel Group, Inc (CHTL), although as I denoted in my watchlists and, in the trade alert itself of when I shorted the piece of shit stock at 41 cents/share, up 200%+ in just a few days, Smith is not getting compensated for this one (or so he says).

But the way this non-compensated pick performed WAS EXACTLY like any other paid pump and dump…let’s compare CHTL to CROSSWIND RENEWABLE ENGY (CWNR), a typical penny stock promoter pick compensated by $300,000, guess which chart is which:

cwnr

chtl

Do you see how both stocks are doing NOTHING until all of a sudden both spike…and most importantly to me, both come down quite nicely and predictably.

So why is a non-pump-and-dump spiking and crashing exactly like a blatant-pump-and-dump?

Because Tobin Smith, while not compensated on CHTL…like Dave Gentry, while not compensated sometimes, knows how to spike a stock and get press because they are professional IR/PR people, just as Tobin Smith admitted the other day in a tweet:

while we run the IR/PR and social marketing platform…more to comeless than a minute ago via txt

And that was after tweets like this which are designed specifically to interest people to invest in a stock:

80 page Private Market Valuation Report from NBT Research on #ChinaTel $CHTL in Process–Sum of Parts >$8 a share est is now LOW RANGE…:)less than a minute ago via Twitter for BlackBerry®

(c’mon Tobin, you’re really gonna act all innocent and dumb when you put a price target that is 32x the current price? To me, that’s just irresponsible and I will ALWAYS rip on you and your slug kind for utilizing such poor-and-greedy-people-inducing tactics to spike your stock price)

And I know, I know back in December when you said “Failure is not an option” and you admitted that “By my counts my F&Family and YOUR Friends&Family collectively own over 30,000,000 shares or nearly 8% of the company. That means I am personally MORE than committed—I am in this up to my eyeballs and I am going to whatever it takes to fix the problem.” so you have to do what it takes to get the stock up:

My Year end Apology and 2011 Action Plan for ChinaTel Group $CHTL–Failure not an option here…its personal…http://tinyurl.com/2f2zp94less than a minute ago via TweetDeck

So I applaud you for your “research” distribution aka pumping and by my count, 27 tweets already this month regarding CHTL, and I thank you for the predictable 25%+ dump within a few days your actions have caused (you helped my subscribers of my 4 newsletters profit a few thousand bucks), but don’t you dare tweet me with this threat regarding libel, your pretend ignorance and misguided research:

@timothysykes ALL $CHTL shares we own disclosed..I paid NOTHING to “pump” anything.. where u get this BS from Tim? Ever heard of Libel?less than a minute ago via TweetDeck

I NEVER said you got paid on CHTL, I said you usually get paid on your picks which, judging from your own disclaimers and industry reputation is true. The fact that you would try to twist that around just proves to me how you’re an incompetent researcher which is why you and your dumb-as-shit followers are stuck invested a ton of $ in a stock with perhaps the single worst chart in the entire stock market:

chtl

Tobin, understand I’m not out to shut you and your classic penny stock promoter tactics down, you create great short selling opportunities for anybody with half a brain, but I will not tolerate you or any of your promoter buddies talking to me or my research buddies as if we don’t all understand the game here.

You wanna pretend CHTL is a good company, fine, write these research reports and say there’s 32x upside and sell ’em to your suckers/TV producers who aren’t bright/cynical enough to require that you post all your trades and track record on Profitly and see that you know what, your longterm track record sucks! If you had the guts to hire a real stock promoter like Jarret Wollstein, maybe you and your followers can get out for 4-6x the current price, but that’s about it…otherwise, I’m gonna bring this post up each and every month as we watch CHTL go down the tubes, no different from most of your other picks.

Tobin, long story short, you believed your own marketing too much and forgot rule #1 as a penny stock promoter: sell the Kool-Aid as much as you want, just don’t drink it.

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