The Corporate Law Group

PUMP IT

We received a truly bizarre piece of stock manipulation in the mail the other day.  It was a 20 page slick magazine sized publication called “The China Club” but was really nothing more than an expensive attempt to pump the stock of China Global Media (“CGLO”).  We are not investment professionals but the last thing in the world we would do after receiving this is actually buy some stock that we’d never heard of before.  It actually says on the cover that, “I’ve uncovered a little known stock…with potential to bring you 822% gains in 9 to 12 months.”  We’re not interested because we are looking for exactly 823% gains in 9 to 12 months and this falls short 1%.  The publication talks about everything from US debt to China, to Chinese auto purchases, and claims that sales will double as, “CGLO grows at a frantic pace to keep up with blistering demand,” and that, “CGLO is poised to make huge windfall profits,” among other bon mots.  A disclaimer at the back claims that the publisher is not receiving any compensation other than future subscription revenue and that an affiliate is getting $15,000, but says that the publication cost over $800 thousand.  This is obviously an attempt to manipulate the stock price of a tiny company trading at a buck a share, albeit a more expensive scheme than is typical.  The SEC will want to check this one out.

Paul Marotta

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