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cecamadocv1 (99.97)

LEXG.OB, THE SCAM....

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April 28, 2011 – Comments (17) | RELATED TICKERS: LEXG , ABX , SLW

Citron just released this: Citron is going “old school”.   But we just had to “keep it real” … as you will read below.   It is not a surprise to anyone that Lithium Exploration (LEXG) is a scam.  www.thestreetsweeper.org   

Streetsweeper did a nice job profiling the lack of underlying business at LEXG: 

http://www.stockhaven.com/how-the-ceo-of-lexg-alexander-richard-walshs-pay-is-potentially-8x-more-than-the-ceo-of-goldman-sachs/

OK, so we know there is no business, and for a CEO they put in the resident “patsy”.    Sadly enough the CEO of this high flier just got foreclosed on his house 6 months ago.

Foreclosure doc

But who is really behind this stock?  For that we read the disclaimers in these egregious stock promotional pieces that will one day serve as evidence in the promoters’ trials.

http://www.smauthority.com/report/

http://www.thestockdetective.com/lexg/

In the disclaimers we read that this stock promotion was paid for by Gekko Industries, Inc.

With a simple search through the Nevada Corporate Registry (a favorite place for Vancouver Stock Promoters) we read that Gekko, a defunct corporation, was controlled by William C Robertson and Robert Rosner.

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=R3re88sIG49XfPy%252bU1Mdpw%253d%253d&nt7=0

These two have collaborated many times in the past on numerous now defunct public companies throughout the US and Canada.  One of their stocks, Wataire International (WTAR) trades for fractions of a penny after a 2008 SEC inquiry into the use of spam in stock promotion.

http://www.stockpatrol.com/article/key/secstyle_spamalot

But this is where it gets all nostalgic for Citron.  The President of Gekko, William C. Robertson was the subject of a Citron article 10 years ago (yes we have been at this for a long time) while he was involved with Burrard Technologies.  http://www.citronresearch.com/index.php/2001/11/19/stocklemoncom-reports-on-burrard-technologies-otb-btgs/

Robert Rosner was also a major investor in Burrard as evidenced by this SEC filing:

http://webcache.googleusercontent.com/search?q=cache:gTUCeDCwy7IJ:google.brand.edgar-online.com/EFX_dll/EDGARpro.dll%3FFetchFilingHtmlSection1%3FSectionID%3D1461742-28493-39594%26SessionID%3DbF4HHFiYveOe4P7+robert+rosner+pegasus&cd=1&hl=en&ct=clnk&gl=us&source=www.google.com

So what ever happened to Burrard?  It became Pegasus Wireless, and as expected< they were sued by the SEC for fraud:

http://www.cellular-news.com/story/37701.php

But here is where the story gets real interesting …so read up, promoters.   The CEO of LEXG, we are told, is Alexander Walsh.  But not according to the Nevada Corporate Records.  They have the president of Litihium Exploration as Nanuk Warman.

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=j%252bUP1uB8FfcsK6MnhBOCUw%253d%253d&nt7=0

Why Citron finds Mr. Warman so interesting is that he was the President of a company called Neutron Enterprises.http://www.zoominfo.com/people/Warman_Nanuk_324182954.aspx

Most recently Nuetron’s claim to fame is that it was one of the 4 stocks manipulated by stock promoter George Georgiou who just received a 25 year sentence…yes that is right no typo….for Stock Promotion.

http://regulatorycomplianceblog.com/tag/neutron-enterprises/

In the government’s case against Georgiou it says the following statements about Neutron   …  does it sound just way too similar to LEXG???

“In the spring or summer of 2004, Georgiou told the CW about his plans to manipulate Neutron. Georgiou told the CW that they could make a lot of money by illegally pumping up the value of Neutron stock through manipulative devices such as match trades, wash sales (or “crosses”), and e-mail blasts (electronic mailings sent to induce purchases

Georgiou also told him that he controlled the company and that he and his group were buying up the entire float. He further stated that he planned to run promotional campaigns to increase the volume and price of the stock. Based on Georgiou’s promises to the CW to issue non¬restricted shares and to provide him with a discount in a private placement, the CW agreed to participate in the manipulation, to get others involved, to have them buy and “park” the stock, and then to sell when directed to do so.”

http://www.sec.gov/litigation/litreleases/2010/lr21751.htm

So a question for the promoters:  are you the guy more likely to do the 25 years or the guy who becomes the CW (cooperating witness)?  A copy of this report has been sent to the SEC attorneys on the Georgiou case. 

Citron can write pages on how this is not a real company with no real operating but we are not going to insult our readers.  You know that.  What we cannot figure out is why in an age where a stock promoter can get 25 years in jail, would people actually let the Lithium Exploration promo happen?  I guess you can never underestimate the other guy’s greed or stupidity.

Citron has done its best to ascertain the identity of Gekko Industries.  If it is not in fact the same Gekko Industries referenced above, then please share with us which one it is.

Cautious Investing To All

17 Comments – Post Your Own

#1) On April 28, 2011 at 11:07 AM, cecamadocv1 (99.97) wrote:

Even before this report came out, I did my own research and easily was able to see that this was a pump and dump.  They have spent millions advertising this company.  This pump is a good one, but the dump will be even better.

CEO had his house foreclosed on 7 months ago, and this company has no revenues, nothing, nilch, nada...

 

 

They can still be promoted and played, of course, as veterans of the shady penny-stock world well know. And companies promising to search for lithium, which powers the batteries used in new and increasingly popular electric cars, rank among the clear favorites in this risky space.

Today, LEXG stands out as the biggest star by far. The company generates no revenue, corporate filings show, and will likely need years to do so if it manages to survive that long. It had no cash on hand at the end of 2010, either, and it managed to raise a mere $250,000 through a private placement deal earlier this year. But thanks to a $3.3 millionpublicity campaign – possibly record-breaking in price – LEXG has skyrocketed from 12 cents to almost $9+ a share in barely a month and now boasts a market value that’s approaching $500 million.

 

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#2) On April 28, 2011 at 1:11 PM, MJR2010 (< 20) wrote:

Dear cvdynasty1; 

Re your post: The LEXG-scam

Many thanks for your timely post.  I have been watching LEXG since it came out of no where and had a share price of $1.30 in late March or early April of 2011.  I actually saw a promotional piece and thought about buying 1,000 shares.  However, something did not smell right when I saw it every day at the top of My Score Card Watch List gaining 20, 50 and 90%.  Not even Netflix grew like this.  I have been kicking myself about not getting in until I saw your post.  I thank God for all of the due dilligence FOOL's that subscribe to the Motley Fool Stock Advisor Newsletter and website and provide novices like me with excellent information.  Although I try and read the posts everyday, this is my first post of a comment since joining MF in February of 2009. 

MJR2010 

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#3) On April 28, 2011 at 1:59 PM, cecamadocv1 (99.97) wrote:

I thought you were being sarcastic and actually mocking me, but looks like your actually thanking me.

If you know a company is pure garbage, but you know people might invest in it, because of hype, and if you can afford it, its not stupid to invest.  But just have the trigger button ready.

This will come crashing, and wait and see...  My guess is tomorrow or monday, once people see a negative day on it, people will try and get out.  It will be a massacre...

 

 

 

 

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#4) On April 28, 2011 at 2:08 PM, WillSurfForFood (80.19) wrote:

Interesting company, according to yahoo finance the market cap is now around 500 million and according to a recently filed 10Q their net revenue is nil. 

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#5) On April 28, 2011 at 3:09 PM, cecamadocv1 (99.97) wrote:

I am shocked this hasn't crashed yet.  People are so stupid, its a damn shame.

 

 

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#6) On April 28, 2011 at 6:07 PM, rexlove (99.45) wrote:

Daytraders have been having a lot of fun with this one. Eventually they will pull out and this thing will crash. This may survive another day or two. Putting my underperform in tomorrow.

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#7) On April 28, 2011 at 6:13 PM, PainterPoker (21.43) wrote:

If MJR2010 joined in Feb. of '09, wouldn't MJR2009 make more sense? He does sound very sarcastic...

Anyway, a lot of Lithium exploration companies are having huge moves now, do you think this is because of LEXG or is something else going on here?

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#8) On April 28, 2011 at 9:02 PM, mhy729 (32.17) wrote:

LTUM up 343.48% then down 48.24% after-hours [Google Finance]

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#9) On April 29, 2011 at 1:22 AM, MJR2010 (< 20) wrote:

Hey, cvdynasty1, 

I was in no way mocking you or being sarcastiic.  I was thanking you for doing your due dilligence and sharing your perspective.  I am surprised some of you are so judgemental.  I did join TMF in February 2009 but did not start investing until April of 2010, spending the time tracking TMF recommendations and wishing I had got started buying shares much sooner, but I have done well.  I did not get around to setting up an avatar and profile until the fall of 2010.  I just do not have a whole lot of free time.  Again I thank you for your post.   I am really a novice at investing but am committed to learn all I can and I want to start learning about puts and options so I can earn money in both directions and in sideways markets.

MJR2010

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#10) On April 29, 2011 at 1:22 AM, MJR2010 (< 20) wrote:

Hey, cvdynasty1, 

I was in no way mocking you or being sarcastiic.  I was thanking you for doing your due dilligence and sharing your perspective.  I am surprised some of you are so judgemental.  I did join TMF in February 2009 but did not start investing until April of 2010, spending the time tracking TMF recommendations and wishing I had got started buying shares much sooner, but I have done well.  I did not get around to setting up an avatar and profile until the fall of 2010.  I just do not have a whole lot of free time.  Again I thank you for your post.   I am really a novice at investing but am committed to learn all I can and I want to start learning about puts and options so I can earn money in both directions and in sideways markets.

MJR2010

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#11) On April 29, 2011 at 10:23 AM, cecamadocv1 (99.97) wrote:

Thanks MJR

 

I guess when people are really nice, and give thanks it can sound sarcastic.  I'm just used to people being sarcastic or plain rude.  I frequent MMA (Mixed Martial Arts) websites liker sherdog.com and that has to be one of the most sarcastic place on this planet.

 

But anyways we can watch LEXG.OB collapse together.  Goodluck with your investing hope the best for you.

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#12) On April 29, 2011 at 10:58 AM, jatade1 (34.49) wrote:

Thanks for the tip...put in the red thumb on this one after market close yesterday and looks like it will be a good return for me. 

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#13) On April 29, 2011 at 11:24 AM, MJR2010 (< 20) wrote:

Looks like your call is right on; LEXG down 40% this morning.  What rockets up can also rocket down.  I hope this is the beginning of the end for this scam.  I'm sure there were astute FOOL's that got in and got out, making a nice profit in a matter of 30 days.  I would have been there too but just did not have any free cash to speculate with.

MJR2010

 Hello mhy729:  I note from your post to the cvdynasty1 blog that you are tracking LTUM.  I have tired to enter LTUM on my Score Card, however, TMF does not recognize it as a viable entry.  So how are you tracking LTUM using TMF tools?   I am able to track it on my wealthinvestor charts.  MJR2010

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#14) On April 29, 2011 at 1:32 PM, mhy729 (32.17) wrote:

MJR2010

I copied that information from Google Finance, and it may not be available on CAPS.  It showed up on the "Price Gainers" section of the main page.  I'm not saying it's a scam, just thought I'd post another lithium company that was going ballistic.

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#15) On April 29, 2011 at 6:07 PM, equi221 (< 20) wrote:

2 weeks ago my friend told me about LEXG and i saw it grow and i asked if some people wanted to join so i contacted mr. Walsh saying people want to invest 60 mill , to which he responded fast. This morning i signed a non disclosure with him and now asked him how he would comment all said online!THANK GOD i saw this , my friend sent me a link just this evening and i was shocked to see this!Since i'm new at investing , can smb tell me what will happen now? they just drop dead and thats it?

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#16) On April 30, 2011 at 3:01 AM, cecamadocv1 (99.97) wrote:

well what will happen now, is this stock should spike up and down.  Thats why its called a pump and dump

trust me, you do not want to play this game, not with real money.  This stock could easily go back to 20 cents a share...  More then likely I can see this in the ones, sort of hanging to life like Titan Oil does...  TNGS.OB

This was one of the greastest pumps I have ever seen, and it was well thought out, and coordinated. But i do not ever expect to see this above 6, so many people have seen the volatilty of this stock.  I doubt that it can make a big climb and hold it.

 

Remember this company has zero revenues

 

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#17) On May 01, 2011 at 12:20 PM, EV38 (99.76) wrote:

As a person who makes a living off of small cap mining stocks on the TSX and TSX Venture, simply stating that a company has zero revenues does not mean it is bad or a pump and dump. Take Copper Fox Metals for instance:

http://tmx.quotemedia.com/quote.php?qm_symbol=cuu&locale=EN

http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00020511

 If you review the above links, you can see Copper Fox has a market cap of $900M and has had a market cap in the hundreds of millions for several months now despite not a penny of revenue and a $38M deficit over it's life span. If you look at how it trades you know it is clearly not a scam nor a pump and dump and is consistently one of the top traded stocks on the Venture exchange. This is because it has so much copper to its name that everyone feels it will be bought out by TCK in the billions without ever having to lift a pitchfork itself.

Now in relation to LEXG, it *could* conceivably be worth $300M in market cap if the 5 permits it holds on Valleywood contained a whole boatload of Lithium. That *could* be the speculation.

However, if we are going to look at LEXG's holdings, then we have to look at how they got them:

http://www.firstlithiumresources.com/Projects/Valleyview-Lithium-Project-Alberta/

Reviewing this link you see that First Lithium optioned out 10.5K of their 90K hectares of this property to LEXG. If you review the below post:

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=95699&tid=1850&mid=2084&tof=1&rt=1&frt=1&off=1

It would be logical that First Lithium, not LEXG is the true play here if you're going to speculate that Valleywood holds the motherlode. However FLNTF trades at a mere 13 cents with the same amount of shares outstanding as LEXG. Why is that?

Because of First Lithium's TSX Venture symbol MCI.v. It's not so easy to pump FLNTF's symbol sky high because all of us smart Canadians rule the trading on this stock. That being said, if there is something behind Valleywood to justify this obscene price of LEXG, First Lithium is the definite better play because of its volume and price spike on Friday but still very reasonanle market cap of $8M compared to LEXG.Oh and the fact it owns EIGHT times more than LEXG in addition to 6 other unrelated gold/silver/lithium/potash properties.

You can tell by the way I'm going with this that I was one of those smart Canadians that bought MCI.v sometime this past week :)

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