By Jason Bond of JasonBondPicks.com
Pump and dumps are part and parcel of the penny stock universe. Every few months a new pump and dump appears, looking to take advantage of naive investors trying their hand at the penny stock casino. In recent weeks, a fresh pump and dump has appeared; Goff (OTCBB:GOFF).
The pump began on March 18. Since March, Goff has gained more than 215%, impressive by any standards and enough to lure investors. So is Goff destined to be a game changing company or will it live up to it's name and dump... eventually settling in subpennyville?
Like all pump and dumps, Goff has made some tall claims since the pump began on March. The company has released a series of news in the last two weeks, as is usually the case.
On March 15th, 2013, the company said in a press release that it acquired 100% interest in mineral leases in the Agudas, Department of Caldas, Colombia area. The acquisition was made through the company’s wholly-owned subsidiary, Golden Glory Resources S.A.
Warwick Calasse, Goff's CEO, had this to say about the “major acquisition”, “The property shares a similar profile to many other successful gold projects in the region and has all the earmarks of a small, local operation that could quickly turn into something much, much larger---such as the multi-million ounce projects emerging in the Marmato.”
This was just the first of the many “positive developments” the company has announced since March 15. The latest announcement was made on Monday when the company said that its subsidiary plans to begin a 5,000 meter diamond drilling program on the La Frontera Gold Project.
Goff has made some tall claims in the last couple of weeks. However, a closer look at the company suggests that there is nothing but a classic beginning trader fleecing going on here.
First the evidence. Goff is being promoted by Awesome Penny Stocks, the best stock promoter Wall Street has seen in ages. These guys pump stock better than Austin "Danger" Powers Swedish-made penis enlarger. Regular penny stock traders probably know Awesome Penny Stocks’ “credentials”. However, for people who are hearing this name for the first time, it's best you know your swimming with sharks.[caption id="attachment_66076" align="aligncenter" width="534"] Who can pump better than a Swedish-made penis enlarger? Awesome Penny Stocks![/caption]
Let me make this clear, I'm not the pump police. If there's money to be made on a swing trade I'm probably not far behind and I have traded many of Awesome Penny Stocks picks in the past. Nobody can argue they are the gorilla in the room in this niche.
The problem I find is penny stock pump and dumps like this often attract beginners who in fact are the least qualified to be messing around with stocks like this. I say it time and time again, these pumps are truly only for savvy traders and even the best can get pummeled if it dumps unexpectedly, which they always do when the promoters decide to move to the next gold mine.
Bottom line, while most Wall Street gurus act like they're too good to talk about penny stocks, the lack of coverage allows beginners to make big mistakes leaving a bad taste in their mouth when in fact trading stocks under $10 can be an extremely rewarding hobby.
Heck, I'm up over $80,000 in 2013 swing trading part time while teaching thousands of clients my strategy. I look out for the little guy, because I was the little guy.
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Just think about it for a moment. If all of Goff's claims were true and it is indeed sitting on significant mineral leases, why would it need to promote itself? Here's some hard to argue evidence I dug up in a quick scan of this company.
A filing made by Goff earlier this month shows Gary O’ Flynn was the company’s President, CEO, Treasurer, Secretary and Director until he resigned on February 26th, 2013. On the same day, Patrick Corkery also resigned as the director of the company.
Also on February 26th, 2013, Calasse became the company’s CEO, President, CFO, Secretary, Treasurer and also a member, in fact the only member, of the Board of Directors. So here we have a mining company that has acquired a major mineral lease, but only has a sole employee.
In the filing, Goff said that Calasse is qualified to sit on the company’s Board due to his extensive and managing experience. Well the same filing shows that Calasse has extensive experience in training and management positions with horse farms and stables in the U.K. and Zimbabwe. Not sure how Mr. Calasse’s extensive experience will help in managing a mining operation. The filing does show that Calasee served as an executive officer and director of Raftec Investments, which is a firm he owns and controls. The company apparently is based in Harare, Zimbabwe and is engaged in the business of foam rubber products and chemicals for mineral exploration industry. I tried to find information on Raftec Investments, however, could not find anything.
The March 5th filing also shows that on February 26th, 2013, Calasse bought a total of 108,750,000 shares of GOFF common stock from O’ Flynn and Corkery for $25,000. This translates to roughly $0.0002 per share. Given the fact that GOFF is now trading at $0.417, Calasse has already made a fortune on his $25,000 investment. So I won’t be surprised if the dumping begins soon.
A filing made on March 6th shows that Calasse was issued another 100,000,000 shares for providing management services for 12 months.
In a March 12th filing, the company noted that it does not have any employees. On March 18th, though, the company said in a press release that it appointed Manuel Hernando Vasquez Serna as a Director.
There is enough evidence out there that Goff is a pump and dump. The big question is when will the promoters shake the tree again now that the stock has been pumped more than 200%? Personally it looks strong but if it follows recent patterns I think it'll dump, walk back up, go nova squeezing shorts and then fade off into the subpennyville sunset. Either way, if you're a beginning trader up triple digits thinking you've hit the Wall Street jackpot you'd be wise to think again.By Jason Bond of JasonBondPicks.com