We seem to have found a new wave of pumpers in GoIP Global (GOIG) blinding new shareholders once again. As I stated before, this company has a great concept with a terrible driver behind the wheel. I love the concept, I always have, but I have no trust in Ike Sutton anymore.
One reason this site was created was to call out the bad information (and those who pump that bad information), which can be found everywhere, especially forums. You will find people hiding behind fake names trying to give advice on stocks. Intelligent investors, like Tim Sykes, embrace these pumpers by shorting when blind investors (who listen to the terrible advice on forums) boost up the stock price. Sometimes, these pumpers (or shorts) are trying to manipulate novice investors to buy or sell a stock. Sometimes, these people are very obvious, but many times they are very slick and convincing. Sometimes, you even have novice investors trying to claim they are experts (as we will see below). When dealing with penny stocks, you will find all these problems to be very frequent.
I don’t have a factual statistic for this, as I do not believe a study was ever done. However, I would bet that less than 10% of people playing in penny stocks (outside of the Market Makers) actually make money in the long run. The rest are just sheep trying to figure out why they are losing money. Most likely, if you are reading this, you have been or continue to be a sheep amidst wolves. Many get sucked into the “group” mentality. It is always fun and reassuring to have others claiming they believe a stock is going to go up, alongside you. It is always fun and reassuring to have others claiming that we will all become millionaires in a short time because we found this gem of a penny stock. Many times, you are blinded so much by the supposed “good news” that you continue to miss all the red flags. Even if you have great news, that does not mean in the least bit that the stock will reflect it and go up solely on that. The Market Makers have SIGNIFICANT power in penny land and you must understand and respect that.
It is entirely up to you if you would like to continue being a blind follower or actually take a step back and see penny stocks for what they are. Most every penny stock never makes it out of penny land for a reason. Your best bet is to find penny stocks that were once legit stocks, but fell for one reason or another, such as Sirius XM (SIRI). The next best thing is to find companies with a solid business model and a CEO that has a solid track record but again, this does not ensure the stock will be valued correctly anytime soon. Cord Blood America (CBAI), is a company with a solid business model, doing all the right things. CBAI has a quality CEO that communicates with his shareholders often and does exactly what he says he will do. However, the stock has been shorted significantly, proving that just because things look promising does not mean the stock price actually reflects it. That is why you must be very careful in penny land, manipulation runs rampant in this area. Learn before you jump in a stock based off emotions. Learn instead of taking the advice from a fake name on a forum claiming any particular stock is a great buy. Be very wary when they claim they have been around the block many times therefore they are an expert. Personally, I would love to see the SEC take a look at GOIG, among other penny stocks, and the forces behind its price movement. Penny stocks come with a bigger warning label over any listed stock. Make sure you truly understand that before you put money in the stock, thinking this is a quick way to get rich. Odds are stacked against you even if you really are an expert.
Today, I glanced at the forums for GOIG once again. Sure enough, more pumpers spewing false information yet claiming it is true. On top of it, they claim they are experts. Of course they are. Everyone on a forum with a fake name is an expert. Remember this expert telling you to mortgage your house and put the money in a penny stock? When is that EVER good advice?
Now, we see that Ike Sutton is being pumped as a quality CEO who makes his deadlines. Let us rehash. First, I will show you the claims by the so-called expert on the GOIG forums right now. Next, per my old article, I will briefly summarize the timeline and go into more detail on how these pumpers are blinding you from seeing the facts.
FALSE CLAIMS MADE BY A SELF-PROCLAIMED EXPERT
Here is the “self-proclaimed” GOIG expert and his claims, which I will prove 100% without doubt, to be false.
Screenshot 1 – claiming Ike Sutton has met nearly all his deadlines until the YouTube one.
Screenshot 2 – claiming the same once again, along with his supposed credentials, and that Ike Sutton COULD be somehow making revenues in 2nd quarter even though Ike clearly stated not until July 2010.
Screenshot 3– claiming that Ike NEVER stated he would have revenues before 3rd quarter.
TIMELINE
1) Service launch was expected in 1st quarter 2010. Instead, the launch was delayed until the beginning of 2nd quarter 2010.
2) Day 1 revenues were expected at the launch, which would mean no further dilution is necessary. Dilution obviously hurts shareholders. The initial launch was supposed to be in the 1st quarter. Than, the “commercial” launch was changed to April 15th. After the launch, this became a “beta” launch and not the “commercial” launch, even though the initial PR (see below) clearly states it was a “commercial” launch. That is a lot of miscommunication for a professional company that is “supposedly” about to make all their shareholders into millionaires, is it not?
3) GOIG would be a cash flow positive company by 2nd quarter 2010. Now they have changed their plan to 3rd quarter 2010. How do they pay bills in the meantime? Dilution is the only way. You can view the statistics on how the O/S and float have increased significantly all year. That is why getting revenues immediately is of the utmost importance. Without revenues, diluting shareholders is the only way they can pay the bills.
THE FACTS
Here is the information backing up the above statements.
1) Service Launch Due Diligence
December 21st 2009 PR stating launch in 1st quarter 2010
– You can do a search for more PR’s like this as well.
2) Day 1 Revenues
The company expected Day 1 revenues of the “commercial” launch but that did not come to fruition.
Interview with Ike Sutton stating the “commercial” launch will have day 1 revenues
-In case of the event that this interview “suddenly” disappears, here is a print screen copy
PR stating the “commercial” launch is April 15th 2010
PR stating revenues will not be seen until July 2010
Per the document, “Mr. Ike Sutton, the CEO of GoIP Global Inc., commented, “We are quite pleased with this relatively low loss during the period, as we expect to start generating income in JULY 2010 from our newly launched Go800 service.”
As you can see, the “commercial” launch was supposed to be April 15th. That has now turned into a “beta” launch with the “commercial” launch in June. The entire game plan has recently changed. Yet, per the March 18th PR, GOIG states the “commercial” launch is advancing AS PLANNED. How is that possible when the original plan continues to change?
3) Cash Flow Positive by 2nd Quarter (NOT the Mina Mar screw-up)
Financial statement from Pinksheets.com which was received in February of 2010 stating that the company would be cash flow positive by 2nd quarter of 2010. You can also find the same statement in their November 2009 Financial statement.
PROOF IT WAS RECEIVED FEBRUARY 2010 & NOVEMBER 2009 PER PINKSHEETS.COM
Page 12 of the document states, “The Company is in the process of raising and capital and or debit, implementing its business plan and expects to generate sufficient revenue by the SECOND QUARTER OF 2010 TO BE CASH FLOW POSITIVE. MANAGEMENT EXPECTS OPERATIONS TO GENERATE NEGATIVE CASH FLOW AT LEAST THROUGH MARCH 2010 and the Company does not have existing capital resources or credit lines available that are sufficient to fund operations and capital requirements are presently planned over the next twelve months.”
Compare this to the Financial statement received on May 13th 2010.
PROOF IT WAS RECEIVED MAY 2010 PER PINKSHEETS.COM
Page 9 of the document states, “The Company is in the process of raising and capital and or debit, implementing its business plan and expects to generate sufficient revenue by the THIRD QUARTER OF 2010 TO BE CASH FLOW POSITIVE. MANAGEMENT EXPECTS OPERATIONS TO GENERATE NEGATIVE CASH FLOW AT LEAST THROUGH JULY 2010…..”
DO YOUR OWN HOMEWORK
I’ll leave the rest up to you to decide on who has the facts straight. I’m sure many who are long GOIG will attack me but the facts are facts. I also have copies of all the PR’s now, just in case they somehow “disappear” in the future. I can go into so many more details but this article is long enough as is. You can join us in the Live Chat to discuss in-depth. Be careful of pumpers like him, they will blind you from making wise decisions. Be wary of anyone claiming you are going to be rich off some “gem” of a penny stock. If it was that simple, we would have many more millionaires in the world. Be very careful of who you receive your advice from. Get the level 2 quotes, watch the MM’s, and learn how to trade the stock if you want to actually make money in penny land. Do not “blindly” invest and hope/pray based on someone’s advice on a forum. Do your own homework to see if you agree. Good luck out there.
Mike
At the time of publication, Kudrna was Long CBAI but positions may change at any time.
