The IHUB has become a cesspool for market manipulation at the expense of inexperienced and gullible traders. The penny stock world is full of crooked CEOs that put out false and misleading press releases and use forward looking statements to fool investors into purchasing their stock to help insiders make money. Knowing the truth from fiction is hard enough for the average, inexperienced trader without the added influence of message board posters filling their heads with more false and misleading statements and empty promises of higher share prices and future riches.
One of those recent classic IHUB pump&dumps was Aisystems, Inc (ASYI).
On March 19, 2012, an IHUB poster named Harry Drought, using the handle HDOGTX, who has 2,765 followers on that website, made his first of over 1000 posts on the ASYI message board. Teamed up with other IHUB pumpers, bahamas, Estrella, and $tock_professor, HDOGTX helped manipuate the ASYI share price up from $.0017/share on the morning on of March 19th to $.0154/share during lunch time on March 20th.
ASYI retreated some over the next few days. Then it hit an a new high of $.018/share on April 13, 2012. Since April 13, 2012, ASYI has fallen below where it started on super high volume currently trading at $.0013/share.
I have heard serious rumors that HDOGTX was compensated under the table (undisclosed) by the company or a company insider. Hundreds of IHUB posters naively followed HDOGTX to the ASYI message board forum and the forum which would sometimes go days without a post suddenly was seeing hundreds of posts every day. A stock which had very low trading volume was suddenly seeing hundreds of millions of shares being traded on a regular basis.
Why would ASYI or its insiders want to compensate message board posters to lead a pump&dump?
The answer became painfully obvious with the 10Q filing done by ASYI on May 23, 2012.
ASYI has absolutely no assets. Not even a penny of cash.
ASYI has no revenues.
ASYI also has over $8,000,000 in liabilities including over $4,000,000 in debt Notes.
According to the 10Q beginning in early March of 2012 tens of millions of free shares were being issued at a sharp discount to the market price to debt Note holders. Just ahead of the big IHUB pump&dump.
According to the 10Q between April 1, 2012 and May 17, 2012 alone 289,920,425 free trading shares were issued at a sharp discount to the market price to debt Note holders.
ASYI , which is a Nevada business entity, had to raise its authorized share count from 300,000,000 shares to 750,000,000 shares on April 5, 2012 just to support all of the debt Note conversions.
The conversions and dumping didn’t end on May 17, 2012. With over $4,000,000 in debt Notes and over $8,000,000 in total liabilities the conversions and dumping will not stop for a long long time to come.
ASYI had to raise its authorized share count again from 750,000,000 shares to 5,000,000,000 shares on May 25, 2012 to support the continued debt Note conversions.
While all of the share dumping was going on, ASYI was touting first one potential acquisition of Birthday Slam Corporation (which ended up being canceled) followed by a potential reverse merger with Kool Telecom Ltd.
Birthday Slam Corporation was run by Jeff Robinson and Peter Robinson both of whom have had regulatory problems with the Ontario Securities Commission.
Kool Telecom Ltd has had its own issues in the past with lots of customer complaints about unauthorized use of personal information to secretly charge unsuspecting customers for phone services they never approved.
Bottom line is that inexperienced and naive investors have been suckered into buying ASYI so that debt Note holders can dump their discounted shares for huge profits. Despite all the evidence now available to prove what is really going on, many IHUB posters refuse to accept or still do not understand the truth. I’ve seen posts on that forum claiming that the increase in the authorized share count is a good thing and others that ignorantly state that the Nevada SOS filing for the authorized share increase is fake. I even saw a post today about an email received from a company insider illegally making price predictions and lying about the shares issued towards debt Notes being restricted. Some very dirty stuff going on with ASYI and the victims of that stock manipulation scheme are the IHUB posters that cannot accept or understand the truth.
The biggest lessons to be learned with ASYI are the following:
#1) Despite the IHUB and SEC requirements for all promoters to disclose their compensation, there are posters on the IHUB that are compensated but never disclose their compensation. I currently have proof of one particular IHUB poster which has over 2,000 followers accepting compensation to promote stocks without ever disclosing that compensation. In other cases this poster waited until several weeks after accepting compensation to promote a stock (FBCD) to finally disclose the compensation he received ($10,000).
#2) Message board pumpers will say anything to get others to buy a stock including blatant lies.
#3) Message board pumpers are never truly long on a stock. They only say this to get you to hold longer than them.
#4) IHUB pump&dumps are usually very short lived. When you see certain posters show up pumping a stock on the IHUB you can bet that the stock is going to end up crashing after a short time and creating far more bag holders than profit makers. Learn which IHUB posters are most notorious for creating bag holders and learn how to avoid being suckered into losses by these posters.
Most important of all is to learn how to do your own due diligence (DD). Read whatever filings are available and learn how to look for the warning signs of a dirty shell (insiders that can be linked to past dirty tickers, no real business operations, no revenues, no assets, only liabilities which will lead to future dilution). If you are not good at reading filings or doing research then learn who you can trust to provide good DD for you. It most certainly is not message board posters trying to convince you to buy a stock that they already own or have been compensated to promote.