I wanted to follow up on two articles I wrote recently, one which mentioned the recent full page ads in Fortune, Forbes, Business Week and Investors Business Daily ( I heard Smart Money was running them yesterday) promoting a questionable penny stock GuangZhou Global (GZGT). There is more to the highly irresponsible running of these ads by major financial financial pubications. As Davis Freeberg points out, the players behind GZGT and other shady businesses are at best immoral and at worst criminal. This was a follow up to an aricle called "Spam Goes Postal".
UPDATE – looks like GZGT is aware of all the attention surrounding its company. As expected the company is distancing itself from this and issued a press release yesterday that read in part:
"The Company is aware of the massive media campaign surrounding our company and our stock, good and bad. Much of what is being said is out of our control and the Company would like to distance itself from much of what is being circulated. One thing that we suggest to all potential investors is to speak to a registered investment advisor before making any investment. That being said, the fact is that we are a growing company inside one of the greatest growing wireless markets in the world. We are open and available to talk to our shareholders, brokers, and media to address any questions, comments, or concerns that they might have."
Now, how about a statement from growth stock guru, IBD, Business Week, Forbes and Fortune!
Note: this story is starting to get some traction – Techdirt has picked up on the GZGT stock spam issue as well.
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I also recently wrote up an article taking a look at the consequences of an ethanol solution to decreasing our dependence on foreign oil. Jim Jubak wrote a very similar article the very same day and agrees, but also points out some ways to profit from this issue.
Do you truly belive there is any correlation between ethanol and agave. Let’s be realistc. The truth of the matter is that food prices in the US directly or indirectly related to corn has risen only 2.1% which is less then the 25 year average increase of 2.9% (CPI). When prices go up production goes up which eventually leads to corrections in the marketplace. You can doom and gloom all you want but America’s energy independence has to start now and without any other viable answer corn is the best way to start. So until you come up with a better idea lay off progress.
Paul, I think you’re being a bit narrow sighted on this. I don’t think that the "damn it, we have do to something" approach is a good one in any situation. You have to weight the advantages and disadvantages and the disadvantages in this case clearly outweigh the advantages. How much of that "foreign oil" is going to be required to run the transportation required to move that ethanol? How much for more fertilizer? Ethanol looks good on paper and many Americans will get behind it, but it’s probably going to do more harm than good on many fronts. I understand that when prices go up, production increases but there is only so much farmable land.. heck there’s only so much livable land these days! With government subsidizing the use of ethanol, how high will the price of fruits and vegetables have to go before (A) farmers begin to switch to producing more fruits and vegatables or (B) the American consumer has enough. Overall food inflation isn’t out of control, but ’07 forecasts have increased significantly and what’s most concerning to me is the increasing costs of fruits and vegetables. Great, overall food inflation is in check but most Americans won’t be able to afford to eat healthy. The fattening of a America lives on. Some interesing food inflation figures from the USDA (note that fruit and vegetable inflation has more than doubled in the last 3 years – that’s BEFORE the ethanol boom!): http://www.ers.usda.gov/Briefing/CPIFoodAndExpenditures/Data/cpiforecasts.htm A better solution? Get rid of oil and food to power our cars altogether: http://www.phoenixmotorcars.com/
Stock Market Scam Artists…
I’m going to teach you a little secret about the stock market, and in reality this applies to everything in life, science, religion, politics, television, business, everything.
The first thing you must realize is that money itself is a scam, it’s whole purpose is so that people with money (and the knowledge on how to make it) have power over the people who don’t.
The second thing you must realize is that everybody is a liar, especially when it comes to money.
Now let me show you this in action with respect to the stock market.
Take a look at this stock symbol: GZGT
http://finance.yahoo.com/q?s=GZGT.OB
Now take a look at this press release put out by Kiplinger on June 4th:
http://www.kiplinger.com//columns/picks/archive/2007/pick0601.htm
The guy who wrote the article is: Thomas M. Anderson
Read the article he wrote. Then look at the 30 day chart for GZGT:
Do you see where on June 4th GZGT dropped out? That was about 30-60 minutes after Thomas M. Anderson with Kiplinger came out with his article bashing GZGT.
What I want you to realize and understand is that Thomas M. Anderson with Kiplinger doesn’t really believe the things he says about GZGT, he is lying, he is lying because he has been paid to lie.
Now take a look at how on June 8th, just 4 days later, another Press Release came out, this time it’s a video, that interviews Thomas M. Anderson with Kiplinger on GZGT:
So that’s twice in 4 days that they bashed GZGT.
Let me tell you a little secret ok? Kiplinger would NEVER in a billion years bash a bad stock, EVER! They never have and they never will, period.
Why?
Well can you imagine if they did? Where would they start? I mean, there are thousands of not just garbage companies, but total 100% scams, they are EVERYWHERE!!!!!!!!!!!!!
I can show you hundreds of them right here right now. How about these total 100% scams:
AURC
HMIT
Both are mining companies, AURC says its being bought out at .55 per share, a total 100% lie, they also say they have 5 billion in assests, a ridiculous absurd lie to the point where it shows the level of stupidity of the owners, they can’t even make a lie that’s believable.
HMIT says its being bought out for 2.55 per share, so the first thing it did was sell off from .50 down to .05, I guess whoever is selling (the company) would rather sell for under .50 then for the 2.55 offer right?
I can show you hundreds of these stocks right now, they are ALL total 100% scams!
Now here comes along GZGT, and I can tell you something, in ALL my time trading stocks I’ve never once seen a scam chinese company, not once. But I have seen two chinese companies go from 1.00 to 40.00 per share, they are:
SINA
SOHU
And both of them are into providing services on the Internet, a big business to be sure, but GZGT’s business model is a thousand times larger, why?
Because while it’s true that the Internet is growing in China, and many people are going onto the Internet, cell phones are a much larger market, everyone in China wants a cell phone, everyone needs a cell phone, a cell phone is like a personal item, and not only do you need one, you need a new one every so often, once a year, or once every few years.
In the video that bashes GZGT, notice how Thomas M. Anderson with Kiplinger says, “GZGT is just a retail company”. Can you imagine his level of stupidity for saying that?
Does he mean just a retail company like garbage retail companies like Walmart? Or Officemax? Or Home Depot? Is that the kind of retail company he’s referring too?
Tell me something, out of all the types of business’s in the world, which one is the largest by a thousand times?
The answer of course is retail, retail companies are the biggest in the world by a thousand times, yet the idiot Thomas M. Anderson with Kiplinger says, “GZGT is just a retail company”.
Yeah, just a retail company, which operates in a country with 1 billion people in it, the most populous country in the world, and China is growing each year at 10%, which dwarfs all other countries. Yet Kiplinger says, “its just a retail company”.
Do you see his lies now? I mean, either he is the biggest retard on planet earth or he is a liar. I know which one is the truth because all of these people always lie, they are paid to lie, so that big money can take the little guys money, and they do it everytime.
Whenever an analyst tells you to sell, you should always buy, and when they tell you to buy, you always sell, without exception.
I mean, did you really think some analyst out there was there to help you? Did you pay them any money? So why should they help you? If you aren’t going to pay them, then where do they get paid?
They get paid by big money to lie, to tell everyone to do a certain thing. So if big money wants to get in on a stock they will have them bash it so the price will come down so they can buy. Or they are short and they bash it so they can make money when the stock comes down. Or if they want to sell a stock, they’ll have the analysts recommend the stock so they can use all the people to sell to.
It always works this way, it always has and it always will, the stock market is corrupt just like everything in life is.
I just wanted to point out to you their game, and what total 100% scumbags these people are, they are 100% scumbag liars, that’s all they are, that’s all they ever were, and that’s all they’ll ever be.
David, thanks for the lesson. I find it interesting that you would single out Thomas and Kiplinger’s as being the liar and the fraud. Don’t all journalists of major financial publications have the potential to influence the trading of a stock? Maybe I’m off about this, but I thought trading in stocks that were being covered was prohibited my many of these publication, news outlets, etc. The issue for me with GZGT was never really about the questionable fundamentals, the scope of their business or even the pasts of the players involved. The main issue for me was the running of the ads in these major financial publications with absolutely no background check on the company involved. I commend Kiplinger’s for not only not running the ads, but digging into the background of GZGT, exposing the pump and dump and calling out its competitors who sold out their readers for a few extra ad dollars. By the way, I noticed on your own stock trading site you traded GZGT for a quick profit, but considering your anger …