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Aug 11, 2009

Penny Stock Promoters Now Providing Useful Disclaimers

by J. Robert Burgoyne — last modified Aug 12, 2009 11:00 AM

I received an unsolicited email this morning, promoting a low-cost stock. Interestingly, this solicitation had a disclaimer at the end, telling me: "We want you to know that while our ad says buy we are selling".

The email is promoting the stock of a company whose revenue for the period ending March 31, 2009 was $0. I researched the company's SEC filings and found that the company's total assets as of March 31, 2009 are $57. 

What I found insightful about this promotion was the disclaimer at the bottom of the email; the highlighting is mine.

CYA:   This is an ad.    We were paid get this message to you.    We only
take on projects we feel have upside and that are willing to pay us.  We
never tell people to sell.    The info in this piece is based on what the
Company told us.  What we believe MAY happen in the future may not come to
pass this is a risky business.     We don't hold any licenses and this has
not been reviewed and signed off on by anyone.    Do not get this or any
other pick unless you are able to pay the band and handle a complete loss
We were paid 20k for this report.     Do your homework and
research any pick before putting your hard earned cash in it and talk to
your own experts.    Basically if you decide to buy in it's your decision
and you are on your own.   We want you to know that while our ad says buy
we are selling
so you can factor it in to your decision and we don't get in

Needless to say, ignore this and similar stock promotions. If you receive an inappropriate solicitation, you may want to file a complaint with the SEC.