BigFatBEAR (99.16)

Beware YASH, a sketchy pump & dump looking penny stock!

August 31, 2009 – Comments (15) | RELATED TICKERS: OMG

I found in the mail today a magazine-looking thing addressed to my Mom (who is NOT stock-savvy, mind you) from a group called "Global Investor Watch" with a bold proclamation on the front cover: "Discover a stock that can rise 2000% or more!" The company being advertised is called Yasheng Eco-Trade Corporation, with an over-the-counter ticker of YASH. It currently sells for $0.395 per share, making it a sketchy penny stock.

I instantly smelled trouble, so I read the whole danged piece of propaganda. And after reading it, I'm even more convinced that it is, in fact, just that: propaganda. It was so much in fact, that I wanted to come complain / mock / raise red flags for my fellow Fools.

On the front cover, it says that this particular volume is #5, the "Special Edition for Premium Members"...  (Whew! Good thing I'm paying so much to be a premium member!) and it also declares that it has a total circulation of 3,000,000. (That's a lot of potential suckers! Barnum would be pleased.)

The first inside page contained the following gem:

"Dear Investor,

There is one question to ask yourself before reading this report - 'Do I want to make a profit if it's at the expense of jobs in America?'

Well, of course you don't. No one does..." (ACTUALLY, I'm pretty sure 90% of corporations do, and I'm pretty sure a similar number of investors do. Good job with the play on nationalism, though!)

The second page was filled with similar dumb-money no-brained hilarity:

"The time to invest is NOW"

"Have you ever heard the dream about the great savings in importing from China?" (WTF! That's an absurdly mixed-metaphor of a tongue twister if I ever read one. My brain already hurts.)

"You'll be kicking yourself for missing out on potential 2000% growth" (Or, I'll be applauding myself for avoiding wealth-drestroying pitfalls while getting rich slowly...)

"This new paradigm in import sales and distribution is jus t too difficult to predict how large and fast it will grow. But rest assured it will grow. YASH is a fantastic investment NOW. It could easily soar to $5, $10, $20, $35 or more a share in a very quick time frame." (Yay! I can sleep well tonight knowing that my years worth of hard work and penny-pinching will compound enormously by the morning! It's a good thing I discarded my postion-sizing rules and went all-in from a mailer...)

"A 25,000 share investment could return as much as $500,000 in 18 to 24 months"

....etc, etc.

While poking around online, I noticed that the mailer and the Google Finance page have different people listed for Chairman. (Things that make you go "hmm"..)

I also found some great tiny print at the end of the mailer, which I feel the need to reproduce in its entirety (bold emphasis is mine):

"Disclaimer: This paid advertisement of Global Investor Watch (herein "GIW") is based upon information believed to be reliable. The information contained herein is not gauranteed by GIW to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. GIW is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst, or underwriter. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. GIW has been compensated by Green Century Capital with cash in the amount of $2,398,485.50. GIW has been compensated for dissemination of this advertisement and other professional services. GIW's affiliates, officers, directors and employees may also have bought or may buy the shares discussed in this opinion and may profit in the event of a rise in value. GIW will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgement of the market. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may" "future" "plan" "planned" "will" "should" "expected" "anticipated" "draft" "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and GIW undertakes no obligation to update such statements. www.yashengecotrade.com" 

Translation: We're pumping this stock and then dumping it after a couple idiots buy a few million shares. We somehow got paid $2.4 million by a "green" mutual fund company to circulate and clog your mail with tons of this crap. Also, the future is damn near impossible to predict. The end.

Walk softly and carry a big stick, my Fools. Predators are out there! I wouldn't invest a cent into YASH that I'm not willing to kiss goodbye. Given the large number of good-to-great real investments out there right now, the total number of cents I'm willing to lose to YASH is: 0.

The numbers don't lie, and that's a bear!

-BFB

PS. YASH ticker isn't in CAPS yet, but if it gets added and if it soars to rate-able, I'll be one of the first to red-thumb. The EDGAR documents I glanced at show it having rapidly decreasing assets and a negative equity at the moment.