When Promoter Penny Stock Picks got paid $60 thousand to pump the stock of Genius Brands International, Inc. (OTC:GNUS) on Jun. 6, the latter surged 16%. However, just because you did not get burned by a massive sell-off back then does not mean that the danger is no longer imminent. For another promo wave was unleashed last night.
According to our database, the same promoter sent a new email to raise awareness about GNUS in the forthcoming session. This time, they only got paid $25K by an unknown inciter in an attempt to push GNUS high enough so that the paying party, as well as other interested stockholders, can easily dump their shares at high tide. This is exactly what will happen if you fall into the trap and load the boat, so beware!
Although the third party in the campaign has remained unknown to us, the prospect of possible dumping of GNUS shares is a pretty safe bet. What is more, judging from the company’s most recent 10-Q report, such an action could easily be carried out by the managers themselves. As it is, the managers’ annual accrued but unpaid salaries through Dec. 31, 2010 had been converted into long-term notes payable which were subsequently exchanged for 8.7 million shares of common stock at a conversion price of $0.20 per share. By coincidence, this is the stock’s probable opening price today. If you held millions of GNUS shares bought at $0.20 per share, would you lure yourself into selling them if the price were to get a boost, albeit a promotional one?
In addition, options to buy in excess of 15 million shares of common GNUS stock were still outstanding as of Mar. 31, 2012. What is more, according to the latest amendments of the company’s stock option plan, the total number of shares of common stock issuable under the plan has been increased dramatically from 11 million to a staggering 50 million, which turns the prospects of dilution into a very real possibility.
What is for sure is that interested parties will try to pump GNUS as high as it could possibly get today with the intention of making a huge return on their twenty-five-thousand-dollar “investment”. What you should do is watch your back and avoid losing your money to pumping scammers.
