Use access key #2 to skip to page content.

EverydayInvestor (< 20)

Anatomy of a Pump & Dump

Recs

60

September 15, 2009 – Comments (46)

If you have ever wondered what a pump & dump is, take a look at the financials of Genova Biotherapeutics (10Q here). They have $35,000 in the bank and somehow are confident that can use that money and patents they bought for $92,000 to develop a cure for cancer.

The company was formerly a travel agency:

"From inception, Kinder Travel Inc. had been a travel agency offering a full range of travel services including corporate travel, vacations, cruise holidays, and group tours. Since Kinder Travel Inc. was incurring continued losses in the travel industry, the Board of Directors decided it was in the best interests of the Corporation to pursue other business opportunities. Through his past contacts in the bio-medical industry, the then President of Kinder Travel Inc. initiated negotiations with Phoinos Oxford Lifesciences Limited, a company incorporated under the laws of the Federation of St. Kitts & Nevis (“Phoinis Oxford”), for the purchase of medical patents for the treatment of prostate and breast cancers.  On April 15, 2009, Kinder Travel Inc. entered into an asset purchase agreement dated April 15, 2009 (the “Asset Purchase Agreement”) with Phoinos Oxford.

The Company subsequently changed its to “Genova Biotherapeutics Inc.” Our shares of common stock now trade on the Over-the-Counter Bulletin Board under the symbol “GVBP.OB”."

The company has issued numerous misleading press releases:

GENova Biotherapeutics and ... signs LOI on ... cancer cure [Cure! Wow, they bought a few molecules and now they already have a cure (not just a treatment) for cancer!]

New stem cell identification technology could cure breast cancer [again, they are curing cancer!]

Genova doesn't even own patented molecules. The patents are pending.The company states in another press release that "The Company is aggressively acquiring patents involving the latest generation of biotherapeutic technologies that can cure cancer without any side effects." That is pretty amazing considering they have $35,000 (Canadian) in the bank. If they can buy cancer cures for that kind of money then they must be brilliant!

Numerous stock touts are pumping Genova stock and idiots are eating it up: the stock closed at $0.80 today on volume of 58 millions shares. Those who believe the hype will soon be left with very little, just as with all pump and dumps (such as recent favorite Spongetech, SPNG).

If you ever run across such a hyped-up company with no real assets, run far and fast. The press releases put out by Genova are over the top even for a pump & dump and I think it likely that the SEC will halt trading in the stock or sanction the company at some point.

Disclosure: No positions. I am a daytrader so I may trade this after the publication of this post. If you wish to see my thoughts on day trading, see my blog at ReaperTrades. I still occasionally blog at GoodeValue.com. In case you care, this post does not mean I will continue to blog here and I likely won't respond to comments ... I just thought it important to spread the news about this horrid sham of a company.

46 Comments – Post Your Own

#1) On September 15, 2009 at 8:16 PM, batman89zmlh (< 20) wrote:

SO.... you right something horrible about a company's stock.... and then at the bottom you post a disclaimer that says "I am a daytrader so I may trade this after the publication of this post" ... what a joke!

Report this comment
#2) On September 15, 2009 at 8:25 PM, Varchild2008 (83.93) wrote:

Three Weeks Later:

(CORN)  CornLeaf Corp.  Formerly Genova Biotherapeutics has landed  partnership with Potash to test CornLeaf as the new Alternative Energy that is guaranteed to generate energy that is FREE...100% FREE and limitless!

We have purchased for $500 3 patents for this CornLeaf technology that will make heating your homes with anything else obsolete.  No more Coal... No More Oil.... No More Natural Gas... No More Wind/Solar.... Just Pure...CornLeaf!!

CornLeaf Corp. trades on the Over the Counter Bulletin Boards with the symbol (CORN.OB).

Report this comment
#3) On September 15, 2009 at 8:38 PM, HarryCarysGhost (99.69) wrote:

Defending Everyday. That is just called disclosure, it would be unethical of him not to mention that he may trade the stock.

But this is an obvious pump n' dump. If he has the resouces to manipulate the share price more power to him. By all means get it up to 1.50 so I could red thumb.

Report this comment
#4) On September 15, 2009 at 8:40 PM, EverydayInvestor (< 20) wrote:

and for old time's sake, a crazy music video:

Report this comment
#5) On September 15, 2009 at 8:42 PM, ChrisGraley (29.84) wrote:

I think you missed the point of the post batman.

This is not a stock that someone can short, so he can't be front-running.

He's simply showing you the red flags that show up on the financials of these pump and dump companies. 

If he's a day trader, it's a lot easier for him to make money on the pump phase than the dump phase.

3 things you should take from this are...

1) Former travel agencies usually don't have the management in place to find cures for cancer. (I forget the current bio-tech that was formally a dog food company, but someone will mention it.

2) $35,000 is barely enough to pay a janitor and bio-techs burn through money like jet fuel.

3) If the company selling the patent really had a cure for cancer, would they sell it for $92,000? 

Skepticism is a fine thing to have as an investor, but Everyday isn't the one to direct it at. He provided you the link to the 10Q above.

 

Report this comment
#6) On September 15, 2009 at 8:46 PM, devoish (98.24) wrote:

batman,

I promise you that you have misintrepreted Everyday's interest in this company. He is a calling it like he sees it. If it gets to $1.50 and I notice, I will red thumb it and remember to thank him for the points when they do come in.

Report this comment
#7) On September 15, 2009 at 10:29 PM, Tastylunch (29.41) wrote:

ChrisGraley

This is not a stock that someone can short,

that's actually not true

reaper shorted it yesterday.

http://www.reapertrades.com/2009/09/watchlist-for-september-15th-and-random-thoughts/

in any event the company is an obvious joke so he's still doing people a favor.

Report this comment
#8) On September 15, 2009 at 10:44 PM, schwilling911 (60.57) wrote:

I don't know how u can talk badly about a stock up 84% today. Join the rush as we break 1.50 tomorrow. I got in at .20 cents last week and believe we have room to go.

 

Will

Report this comment
#9) On September 15, 2009 at 10:52 PM, Tastylunch (29.41) wrote:

schwilling911

LOL

that was a pretty funny joke.

 

Report this comment
#10) On September 15, 2009 at 10:54 PM, ChrisGraley (29.84) wrote:

Tastylunch please tell me how people are able to borrow this stock?

I would love to short it myself tomorrow!

Report this comment
#11) On September 15, 2009 at 10:58 PM, schwilling911 (60.57) wrote:

The data is incorrect another company bought the ticker that is why it shows an old travel company. This speeds up the process since IPO's take more time. Guess time will tell with this one.

Report this comment
#12) On September 15, 2009 at 11:03 PM, topsecret09 (37.04) wrote:

   #8) On September 15, 2009 at 10:44 PM, schwilling911 (95.56) wrote:

I don't know how u can talk badly about a stock up 84% today     If you like the "pennies" try this one on for size.  100 million In cash, zero debt,Insiders buying the stock.Chart pattern positive. Closed today at 65 cents today.....   http://www.lgdi.net/  TS 

Report this comment
#13) On September 15, 2009 at 11:08 PM, topsecret09 (37.04) wrote:

 Forgot to mention Volume Is surging.....

Report this comment
#14) On September 15, 2009 at 11:16 PM, topsecret09 (37.04) wrote:

Almost forgot, Soros has puchased 9%

Report this comment
#15) On September 15, 2009 at 11:21 PM, ivanlibya (< 20) wrote:

So what if it's a pump n dump?  Are people making money?  Yeah, they are.  I close to doubled my investment in two days.  So, is this guy just so nice and sincere that he cares about the well being of other people and their money?  F no!  Clearly he cares people are making money since he's losing out or the people he is writing this BS for, are losing out.  Anytime a "day trader" bashes a stock it's simply self-serving, so why would someone bash a stock if not to benefit themselves in some way?  They wouldn't.  People look out for no. 1, and by bashing this stock, somehow, someway, he is losing out.

Report this comment
#16) On September 15, 2009 at 11:35 PM, ChrisGraley (29.84) wrote:

Uhmm, oh yeah.

Day traders evil they are!

Talking like Yoda I am!

Financials you can read not!

Pumper and Dumper me think you are!

3 dollar bill this stock is!

No CAPS stocks, you have selected.

Shitty job you must have!

Paycheck based on lies to pay bills.

$35,000 total cash is bad.

Paid in the end, me think you are not!

Monsterjobs.com I suggest!

 

 

 

 

Report this comment
#17) On September 15, 2009 at 11:43 PM, TMFJake (53.11) wrote:

1) Former travel agencies usually don't have the management in place to find cures for cancer.

Well, shoot, that explains my portfolio's poor performance.  

(I forget the current bio-tech that was formally a dog food company, but someone will mention it.

The former luxury pet hotel, that became a biofuel compan is AFV Solutions, which changed its name to Pure Transit Technologies.  Here's TMFEldrehad's original pitch.   The killer quote:

"We were originally incorporated... under the name Juris Travel. On March 24, 2003, we changed our name to "Dogs International" .... On February 9, 2005, we changed our name from Dogs International to AFV Solutions, Inc..... We are aggressively pursuing opportunities within the alternative fuel industry and at this point in time have discontinued our previous plan of expanding our upscale pet care facilities beyond the Bed & Biscuit facility we currently operate."

Hmm. I wonder if the Bed and Biscuit mangers might have any interest in pharmaceutical research???

Report this comment
#18) On September 15, 2009 at 11:50 PM, topsecret09 (37.04) wrote:

#16) On September 15, 2009 at 11:35 PM, ChrisGraley (99.14) wrote    

Uhmm, oh yeah.

Day traders evil they are!

Talking like Yoda I am!

Financials you can read not!

Pumper and Dumper me think you are!

3 dollar bill this stock is!

No CAPS stocks, you have selected.

Shitty job you must have!

Paycheck based on lies to pay bills.

$35,000 total cash is bad.

Paid in the end, me think you are not!

Monsterjobs.com I suggest     LOL !!!!   

Report this comment
#19) On September 15, 2009 at 11:52 PM, ChrisGraley (29.84) wrote:

I just got an idea for a bed, biscuit and biofuels company!

What can't 3B be as strong as 3M?

Report this comment
#20) On September 15, 2009 at 11:53 PM, topsecret09 (37.04) wrote:

#17) On September 15, 2009 at 11:43 PM, TMFJake (96.79) wrote:  Well, shoot, that explains my portfolio's poor performance.   LOL !!!

Report this comment
#21) On September 16, 2009 at 1:21 AM, checklist34 (99.71) wrote:

i am not debating that the stocks mentioned above aren't shyte or anything.  so again, this isn't a counterpoint or debate, but...

And this is a 100% true story

I am having a beer with a guy who sold a company, a legitimate company which was itself a multi multi million dollar outfit at the time it was some, for an enormous sum of money.

The company was incorporated to manufacture electrical insulators, it later did business in crematory urns, after that it manufactured loudspeaker cabinets, after that picture frames, after that it sold chemical agents for fixing nano-particle silica things to something he isn't at liberty to discuss it, and after that it became one of the largest manufacturers of something else he isn't at liberty to discuss on the planet. 

Sometimes smart people can fire around a good long while before finding something that works, and this is legit.

But prolly never in a public stock, lol.  thats too silly

Report this comment
#22) On September 16, 2009 at 5:00 AM, BrianCoto (< 20) wrote:

I am sorry for being sincere but this post is completely wrong to me. First of all the writter could not even clearly identify himself. So whoever you are, you must be the most stuped adviser about penny stock trading and no one should care for or follow your advices.

First off the company you are talking about has a real web site which can be visited at: http://www.genovabio.com/

Second of all, that's a pretty nice web site and doesnt look fake at all to me.

Third of all those news you have links to are regardless because they are from public sources and in general, headlines are only to enforce the content but never to be used as main information. If you at least read the news you would find out that there is no cancer cure evolved.

Fourth, you can see more news from this company at Reuters, which is a very reliable source and they are not talking about cure either, at least not yet.

Finally, you def missed the trend and is in horrible unsane madness and want to crash the stock now. So basically you didnt make anything, which means that you lost, which makes you all just another mad screaming looser.

 I recommend you quit and find a waiting job or something else in which you might fel more confortable but Genovabio is not a scam and you know nothing about penny stocks.

 

 

Report this comment
#23) On September 16, 2009 at 7:11 AM, PrestonCheek (32.53) wrote:

ROTFLMAO,

I have no regret not visiting this site anymore, and Brian.........thanks for the spelling lesson dude.

 Oh yeah, holy bad stocks batman, are you serious.

Report this comment
#24) On September 16, 2009 at 8:22 AM, athomeinbama (< 20) wrote:

If his definition includes spng, I say BUY gvbp.

Report this comment
#25) On September 16, 2009 at 9:27 AM, daveweitzel (< 20) wrote:

If the financials in the SEC filings are related to the travel business then I would be interested to see the numbers of the real GVBP.  otherwise the numbers don't add up and it is a pump and dump - admittedly the web site is really good but with staff in 4 continents you can run a company on under $200k a quarter.

Another concern is that they are legit but ned to issue a huge amount of stock so need the higher price

 for th emoment though I am holding my small amount of shares and watching them rise - no harm there just sett a realistic stop loss each day 

Report this comment
#26) On September 16, 2009 at 9:30 AM, schwilling911 (60.57) wrote:

88 cents in pre market this thing is going to break a dollar by 10 am

Report this comment
#27) On September 16, 2009 at 9:32 AM, schwilling911 (60.57) wrote:

Nevermind already there... climb aboard if you like making money...

Report this comment
#28) On September 16, 2009 at 10:18 AM, darkblue2007 (98.27) wrote:

It is already down under $1...Did you guys notice the size of employees in this company.It is only 2.

Report this comment
#29) On September 16, 2009 at 10:36 AM, EverydayInvestor (< 20) wrote:

Hahahahahahahahaahahahahahahahahahahahaha!

GVBP now down 40% on the day and 60% from its highs! It also now appears to be halted.

Report this comment
#30) On September 16, 2009 at 10:38 AM, EverydayInvestor (< 20) wrote:

Report this comment
#31) On September 16, 2009 at 10:42 AM, EverydayInvestor (< 20) wrote:

by the way, anyone notice the quote "that can cure cancer without any side effects" from the press release I quote above? Anyone with an IQ over 80 and a 3rd grade education should understand that is not possible.

Report this comment
#32) On September 16, 2009 at 10:46 AM, SRF4REAL (69.08) wrote:

So, hope some fools got in and out early today lol!  HOD 1.18, trading halted @ .48  ... I watched from the sidelines

 

Report this comment
#33) On September 16, 2009 at 1:26 PM, topsecret09 (37.04) wrote:

 Its still trading... currently at 61 cents @ 10:25 pacific time

Report this comment
#34) On September 16, 2009 at 2:11 PM, EverydayInvestor (< 20) wrote:

yeah topsecret -- that was a data issue with all OTC stocks.

Report this comment
#35) On September 16, 2009 at 3:12 PM, mavrant (< 20) wrote:

I'm selling at 5 cent drops 5000 at a time. 

The webb site listed 3 different sites for investor relations on 3 different days.  One said they haven't done business with genova for 3 months for"financial reasons".  The other 2 sites were wrong addresses and the mail was returned by the maelor demon.   I bought more after they announced their filing, but keeping stops in place and I'm watching it at 10 min intervals.

Tony

Report this comment
#36) On September 16, 2009 at 3:49 PM, GenSkill (< 20) wrote:

Thx for the example, EDI.  Sorry to see you being attacked.

 Your insight is missed around here.

Report this comment
#37) On September 16, 2009 at 4:30 PM, cthomas1017 (97.24) wrote:

BrianCoto,

I am sorry for being sincere but your post is completely wrong to me. First of all you could not even clearly identify yourself. So whoever you are, you must be the most stuped commenter about coomenters on CAPS and no one should care for or follow your advices.

First off EverydayInvestor has a real web site which can be visited at: http://www.EverydayInvestor.com/

Second of all, EverydayInvestor's website is a pretty nice web site and doesnt look fake at all to me.

Third of all EverydayInvestor's links to are regardless because they are from CAPS and in general, CAPS are only to enforce the content but never to be used as main information. If you at least read EverydayInvestor's blog you would find out that he has already cured cancer and thus your stock is worthless.

Fourth, you can see more news from EverydayInvestor all over CAPS, which is a very reliable source and will tell you that EverydayInvestor has already cured cancer, at least patially so.

Finally, you def missed the trend and is in horrible unsane madness and want to crash EverydayInvestor's rep now. So basically you didnt make sense, which means that you lost, which makes you all just another mad screaming looser.

I recommend you quit and find a cleaning job (at the same place EverydayInvestor is waiting) or something else in which you might fel more confortable but EverydayInvestor is not a scam and you know nothing about EverydayInvestor.

Report this comment
#38) On September 16, 2009 at 9:45 PM, EverydayInvestor (< 20) wrote:

cthomas - You are incorrect. I sold the EverydayInvestor.com domain name earlier this year. I haven't had a real website there in years. I do not endorse anything that is currently there.

Report this comment
#39) On September 16, 2009 at 9:59 PM, usubanas (99.62) wrote:

Thanks Everyday. I looked at the press releases and at their website and couldn't decide what to post here, since everything is so funny!! Anyway, a few gems:

 "GENova is positioning itself as the world's leading bioscience company in the development and commercial licensing of novel therapeutic proteins that disrupt the advance of life-threatening cancers.”

“If the drug targets are successful, and based upon deals achieved by other successful drug targets in the industry, we can not only expect up to $100 million in milestone payments per licensed product during clinical trials, but also up to $400 million per annum in up to 20 years following commercialization. Thanks to a growing market GENova’s licensing fees could rise to $700 million per year per product.”

“But that is not all. GENova has identified a number of promising potential acquisitions of R&D projects to be acquired immediately at costs significantly below past investments made in them. These, and other future acquisitions, will ensure that our pipeline of products stay at the forefront of scientific and medical developments.”

“Though it is less common, breast cancer also occurs in males seeing that the breast is composed of identical tissues in males and females. Even though breast cancer in men is rare, the frequency has increased by 1 per cent a year between 1975 and 2004. And he cause is not known.”

“Prostate cancer is more common in black men than in white or Asian men. In fact, compared to white men, African American males are 2 times more likely to develop prostate cancer. Though we do not really know the full story as yet, the reason is most likely a mixture of environmental factors and inherited genes.”

For more comedy, go to:

http://www.genovabio.com

 

Report this comment
#40) On September 16, 2009 at 11:57 PM, HarryCarysGhost (99.69) wrote:

Thanx for the post Everyday.

went through the comments 3x and cracked up every time.

Does any fool have a ratio for how many fools are pumpers <20

No picks.

Just curious. I don't wan't to consider myself good at picking stocks unless I'm on an even playing field. If I'm at 2000 out of say 10,000 but theres only 5,000 actual players.

What do the stats actually mean.

Report this comment
#41) On September 17, 2009 at 12:14 AM, kokushimuso (36.52) wrote:

I agree, thanks for the advice now I know if I see a hyped-up company with no real assets, to run far and fast I will.

Report this comment
#42) On September 17, 2009 at 1:53 AM, herztical (28.15) wrote:

The real question is how does this garbage even get listed on anything? How is it done and how is it legal? I would love to see the filing requirements to get listed. 

BTW did they ring the OTC bell to kick off their IPO?  Was it a guy wearing a stethoscope with a Florida T shirt on? 

Report this comment
#43) On September 17, 2009 at 2:27 AM, ozzfan1317 (78.95) wrote:

I'm starting a company you should buy our IPO. Top Secret is helping me we are selling wacky waving inflatable tube men..;)..lol

Report this comment
#44) On September 17, 2009 at 2:33 PM, miteycasey (30.76) wrote:

After reading this thread I can understand why you no longer post here.

Report this comment
#45) On September 20, 2009 at 11:02 PM, topsecret09 (37.04) wrote:

#43) On September 17, 2009 at 2:27 AM, ozzfan1317 (< 20) wrote:

I'm starting a company you should buy our IPO. Top Secret is helping me we are selling wacky waving inflatable tube men..;)..lol.............  LOL!!!!!!!!!

Report this comment
#46) On September 23, 2009 at 2:53 PM, ChrisGraley (29.84) wrote:

That was a quick ending!

Report this comment

Featured Broker Partners


Advertisement