It seems that more and more promoters have decided to skip the SEC rules these days as the number of newsletters with a trimmed-off disclaimer is constantly increasing. The cat-and-mouse play with the law was joined by another promoter, who gave SGD Holdings Ltd. (PINK:SGDH) a boost in a trade alert after the closing bell yesterday. The database of hotstocked.com indicates that a total of 15 different stocks were promoted by Our Hot Stock Picks in February. However, not a single letter was accompanied by a proper disclosure statement. Thus, it is impossible to determine the nature and amount of the stimulation the promoter received to halo SGDH.
Even though, the promoter has obviously reviled the law, it must be admitted that this will not necessary undermine the upcoming performance of SGHD. Our Hot Stock Picks didn’t save on TNT when preparing and setting their promotional explosives. So, no one can predict what the scale of the detonation of SGDH stock will be today.
In fact, there is nothing wrong in writing promotional newsletters as long as they abide the SEC rules. The promoter of SGDH, however, has decided to make everything possible to obscure the most essential information about the campaign. Therefore, it is not very clear whether the eulogy about SGDH was prompted by an objective analysis, or by some unidentified form of compensation.
