The Latest Great Biotech Penny Stock Pump & Dump (TIMalert Subscribers & I Just Shorted)

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• Manipulation

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This morning within seconds of my actual execution, I sent TIMalert subscribers the following alert:

Shorted 15000 shares of Genova Biotherapeutics, Inc. (GVBP) at 39 cents/share…good starting stake directly into a huuuge morning spike, i’ll either take 10 cent/share profit if it drops or build my position as it rises…this is up on nothing but stock promotion so it should have a 50% drop or more within the next few days…question is when and that nobody knows…shares will become tougher to borrow, interactive brokers had them this time and since its such a low priced stock, the position is verrrry small in $ terms, goal is to make $1,000+ on a $6,000 position

Where do I begin? When a company, now valued at $130 million, that’s surged 900% in a few days:

…fits the EXACT definition of a pump & dump and there are so many red flags, it feels like Flag Day, I just don’t know what to start with.

Here’s a video I made since I’m so astounded at how bad a company this actually is:

Should I talk about how GVBP was a travel company just a month ago and now they’re focused on “becoming the world’s leading bioscience company” (LOL, seriously)

Should I talk about how stock promoters everywhere are putting out the bullish BS press releases by the dozens because they’re getting paid HUNDREDS OF THOUSANDS OF DOLLARS TO DO SO:

Should I mention how Grassroots Research is the most recent promoter to join the paid-for-research clan (check out their disclaimer which adits their “research reports” are nothing more than company advertisements and aren’t to be trusted)

Maybe I should post the charts of previous Grassroots Research “research reports”…look at the following charts and let’s see if you can guess when their “research reports” came out:

Maybe I should just get to the real scum…the GVBP SEC filings & press releases themselves…You can read the entire latest SEC filing if you want, but below are some highlights…most of which will make you LOL so get some popcorn and get excited:

As at the six month period ended June 30, 2009, our current assets were $35,049 and our current liabilities were $112,847, which resulted in a working capital deficiency of ($77,798). As at the six month period ended June 30, 2009, current assets were comprised of: (i) $28,884 in cash; and (ii) $6,165 in accounts receivable (net of allowance for doubtful accounts). As at the six month period ended June 30, 2009, current liabilities were comprised of: (i) $45,239 in accounts payable; (ii) $2,906 in accrued liabilities; (iii) $2,470 in payroll liabilities; (iv) $613 in sales tax payable; (v) $41,759 in shareholders’ loan; and (vi) $19,860 in current portion of long-term debt.

As at the six month period ended June 30, 2009, our total assets were $159,681 compared to $59,954. This increase was primarily due to the acquisition of the three medical patents. See “Asset Purchase Agreement” above.

OK so they’re low on cash and assets…hmmm how are they going to develop potentially revolutionary cancer treatments “anti-cancer biotechs potentially worth $400 Million per annum” (yup, it’s a headline from one of their fluffy press releases) with just $35,000 in the bank? After all they did say:

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months

Hmmmmmm?!?!? Why do they have such little cash when another of their rapidfire press releases calims “New stem cell identification technology could cure breast cancer” (pump & dumps issue fluff PRs in groups to get suckers thinking a lot if going on with the company, little do the suckers know, these PRs are all timed, just a marketing campaign for the stock)

Of course what takes the cake for being the funniest part about this whole thing is ddeep in the SEC filings where they talk about how much they paid for these “revolutionary” biotechnologies:

The parties did not rely on any report, opinion, or appraisal from an outside party in determining fair consideration. The Board of Directors determined it was a fair price because i) according to the website of the US Department of Human and Health Sciences ( http://report.nih.gov/rcdc/categories/ ), cancer research is one of the top three most financed diseases; ii) according to the same website, our patents are in the two largest segments of cancer research, breast and prostate cancer; iii) Phoinos claimed they did not have access to the financial resources to fund further research and development, whereas we, as a public company, have the opportunity to raise financing through the public markets; iv) payment in stock gives Phoinos the opportunity to participate in the future success of the patents; v) the parties agreed that the stock would be valued at the last trade price on the Over the Counter Bulletin Board of $0.30 per share on Octobber 8, 2008; and vi) issuing the stock in installments ensures that Phoinos is not able to sell its entire stock position before the Company has had time to raise public financing to facilitate further research and development of the treatments.

This transaction will have no affect on the Corporation’s Statement of Operations or Statement of Cash Flows. There is no change to the rights of security holders nor are their any income tax consequences to the transaction.

That’s right folks, GVBP’s current $130 million marketcap is entirely based on patents GVBP bought because “cancer research is one of the top three most financed diseases” not based on ANY “report, opinion, or appraisal from an outside party”….meaning they bought these patents because they knew they could pump up the stock using hype & manipulation, luring in suckers everywhere and for only $75,000, you too can have your very own cancer research patent portfolio and create your very own pump & dump!

The people behind GVBP are scumbags. The stock promoters who take their cash are scumbags. It’s average Americans who get sucked into this scam, mistakenly believing they’re investing in the next (as promoters ALWAYS ticker spam popular biotech stocks that have surged as a further inducement to buy) Vanda Pharmaceuticals Inc. (VNDA), MAP Pharmaceuticals Inc. (MAPP) or Dendreon Corporation (DNDN)

C’mon and laugh, this former travel company with less than $35,000 in the bank, no plans to raise $ anytime soon (yeah right! I can see a PIPE coming now at a 50-75% discount to this manipulated runup) is gonna cure cancer! GVBP, you can fool the suckers, you can make hundreds of thousands to millions of dollars, you can buy a lifetime’s supply of Xanax to help you sleep at night when trying to surpress your guilt of scamming thousands of gullible people out of what little $ they had, but you can’t fool me or students of my PennyStocking DVDs….this stock will crash 50%+ when the promoters stop promoting & dump shares they’ve received…and when people realize this is just the latest biotech penny stock pump & dump.

Using these study guides, you can join my other few thousand satisfied customers and TIMalert subscribers by learning from my decade-long experience of making millions the legal way, by discovering these pump & dumps and Short Selling them for predictable, if not totally easy, profits.

And while some of you may dislike me for revealing the ugly truth, my info is honest, experienced and proven (as I am the #1 ranked trade out of 30,000+ on Covestor) & unlike stock promoters and fake analysts, I don’t get compensated by stocks and companies, I get compensated only by TIMalert subscribers and people who purchase my instructional DVDs. So my incentive is to make you $, not scam you out of $ like most everyone else in penny stock land.

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