Uniontown Energy: No One Likes a Pump and Dump
When stocks are being promoted they seem to be a great choice in the moment, and you may be convinced that it is a great stock pick. Let’s get real, usually they end up causing people to lose money, especially the investors. Being aware of these stocks are important, so we found one to warn you about, Uniontown Energy. Vijay Rao has gathered the time line of information about the promotion of this stock, hopefully it will give you some red flags to look for when looking at other investments. But for now, avoid UTOG.
"On 3/23/11, in a press release UTOG announced that it is going to have a 1M share private placement at $2.50/share and that $610,000 had been advanced to UTOG. UTOG said $300K was put towards the Musselshell transaction, but UTOG never mentioned any cash consideration for that land. Also, in its SEC filing, on page 27, it says there were no sales of unregistered securities except for the asset purchase. I don’t know why the SEC filings don’t mention that UTOG is doing a private placement or reference the sale of securities.
On 4/27/11, UTOG announced that it had raised $3M in its private placement by increasing the private placement by 200,000 shares because it was oversubscribed. UTOG also announced that it is currently negotiating a $5M private placement. It seems that UTOG didn’t get the bump in price that it wanted so the next day it released the same press release as a “reminder.” UTOG filed an 8-K on 5/2/10 that is dated 5/2/10 and only references $2.5M raised in the private placement."
Find additional research here: http://turnkeyoil.com/2011/07/05/uniontown-energy-no-one-likes-a-pump-and-dump/