Despite a very large premium and free newsletter, I answer all of my emails myself and in a timely fashion, usually inside a day or two. Recently a common question is, “Should I buy PacWest Equities PWEI err PWEID stock?” so I figured I’d do a quick blog instead of answering each question separately.
PWEI err PWEID is a pump and dump. Wikipedia defines it as, “…a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme “dump” their overvalued shares, the price falls and investors lose their money.”
Are all pump and dumps fraudulent, absolutely not. However, is the outcome generally the same, yes! In the case of PacWest Equities PWEI err PWEID stock let’s quickly take a look at what OTCMarkets has to say about this one. And I quote…
OTC Markets has discontinued the display of quotes on www.otcmarkets.com for this security because it has been labeled Caveat Emptor (Buyer Beware) and because adequate current information has not been made available by the issuer of the securities. It has been labeled Caveat Emptor for one of the following reasons:
- Questionable Promotion — The security is being promoted to the public, but adequate current information about the issuer has not been made available to the public.
- Spam — The security is the subject of spam promotion having the effect of encouraging trading of the issuer’s securities.
- Investigation of Fraud — There is a known investigation of fraudulent activity involving the company, its securities or insiders.
- Suspension/Halt — A Regulatory Authority has halted or suspended trading for public interest concerns (i.e. not a news or earning halt).
- Disruptive Corporate Actions — The security or issuer is the subject of corporate actions, such as reverse mergers or serial stocks splits and name changes, without adequate current information being publicly available.
- Unsolicited Quotes — The security has only been quoted on an unsolicited basis since it entered the public markets and the issuer has not made adequate current information available to the public.
- Other Public Interest Concern — There is, in OTC Markets’ view, a public interest concern.
So why should you be cautious of the PWEI err PWEID stock scam? Well on October 16 shares tanked 79% before reversing 1,120% which was Monday’s high. While I’m 100% comfortable trading pump and dumps, nobody can argue this one is saturated with buyers and bound to repeat the October 16 crash again soon, not to mention OTC Markets status Caveat Emptor!
Now many of you will ignore my message, others will call me a basher and still others won’t find this until it’s too late only to email me 2 months from now asking what I think about PWEI err PWEID stock like the hundreds of emails I get asking me if TAGG, PRTN, VLNX, RARS, NSRS, GWBU, SNPK, AMWI and RAYS stock will come back. Still think I’m crazy? Still think I’m wrong about PWEI err PWEID stock dumping soon, if not Tuesday? If yes, then check out my other blog posts regarding the same promoters and the outcome of their promotions.
Bottom line is this… this play is a pump and dump. It’s now labeled Caveat Emptor (Buyer Beware)! It’s significantly overbought and bound to dump. If you rode the huge gain off the $.04 bottom nice trade… but if you bought anytime recently it’s in your best interest to be on the lookout for the next 79% tank job, which will likely be the last you’ve heard of PWEI err PWEID stock no different than TAGG, PRTN, VLNX, RARS, NSRS, GWBU, SNPK, AMWI and RAYS stock. Charts don’t lie!