Blog : SNPK Scam

by Peter Leeds on March 16th, 2012

SNPK - Another penny stock pump and dump, with penny stock investors getting set up to fail.

Penny stock pump and dumps are currently running rampant like never before. One of latest penny stock companies being promoted is SNPK (but there are many others of course).

I have no problem with the penny stock itself (in terms of the underlying company), besides the fact that they would never pass Leeds Analysis or make our cut.

SNPK actually came out with a statement which said SNPK, "has become aware that internet newsletters have been making unsupportable claims, inappropriate comparisons and unjustifiable common stock performance projections about the Company."

I even don't have emotions towards the dishonest/unethical penny stock promoters.  They will keep tricking penny stock investors for their own gains as long as those penny stock investors keep falling for these tricks.

The real problem, and the real responsibility, lies with individual penny stock investors.  I mean, if hundreds of thousands of penny stock traders bought into a "robot that picks stocks" a few years ago, then I'd say they need a major lesson in buyer beware. 

Maybe taking the major loss that's coming around the corner will be good for them - although, most will probably just say that "penny stocks are bad investments," or "it's dumb to trade penny stocks," so that they don't have to take responsibility that they bought into a free e-mail pitch that they believed about a penny stock company into which they never did proper due diligence.

So, the cycle continues... unethical promoters steal from unaware investors and at the end of the day penny stocks get a bad name.  All penny stock companies get painted with one brush.  

Makes my job harder, but we're just going to keep on doing what we've done for 14 years - finding VERY high quality, fundamentally solid penny stock investments, and taking ZERO compensation for our review and reporting.

UPDATE!!  While I wrote this, the penny stock fell 19 cents... probably wiping out a lot of honest people who just made a foolish choice.

UPDATE #2!!  OK, now the penny stock is down 50% while I'm writing.

Oh yeah - discount brokers are wise to these penny stock scams now by the way.  They are applying massive commissions ($125 or more) to trade this penny stock garbage.

Oh yeah #2 - the S.E.C. has woken up it seems, immediately investigating some of these dishonest penny stock promotions.  There will be fines, maybe jail time, and these penny stock promotions are likely to come crashing down harder the more successful they are.

Support ethics in penny stock investing.  Forward/share this penny stock blog entry with everyone you know who invests.  The majority have seen some of these penny stock e-mails (which were free and that they probably didn't ask for).  Help them understand what is in store for them when they fall for the latest penny stock scam.

In the mean time, read these comments about the SNPK penny stock scam, and the trouble trading the penny stock in question.  We received this e-mail about the penny stock today, to which we replied that he needs to get out of this p+d garbage, and into good quality penny stock companies instead:

"I have purchased 1700 shares of SNPK per Awesome PS and was going to buy more today however it was restricted. Has to do with physical settlement fee. I was told that when I sell the stock, it would cost me $125.00 times the number of buyers it takes to sell the quantity of stock and I would not know the total cost until 3 days after selling stock. I can't find any information on this fee. I was told by Low Trades that all brokers need to pay this fee but recoup the fee from the investor differently."