SEC weeds out 202 questionable stocks this year

SEC weeds out 202 questionable stocks this year

SUSPENDED COMPANIES So far this year the SEC has suspended 202 stocks, putting 2010 on pace to beat 2009's record number of suspensions. Sources: Securities and Exchange Commission, USA TODAY research

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By Matt Krantz, USA TODAY

Regulators are stepping up efforts to weed out some of the smallest and most questionable publicly traded companies.

Hoping to prevent investors from being misled by companies with big promises but little financial information, the Securities and Exchange Commission suspended trading in 202 stocks this year, already topping the 183 stocks that were suspended through the end of the third quarter of 2009. The SEC suspended a record 234 companies for all of 2009, a level that will be easily surpassed this year at the current clip. Suspensions are way up from the 183 and 98 in 2008 and 2007, respectively, a USA TODAY analysis of SEC data shows.

"We've seen an uptick in suspensions," says Tim Ryan of the Pink OTC Markets, which operates the Pink Sheets, where many of the suspended stocks trade. The SEC is "more proactive about it."

Shell companies — firms with little or no assets or operations — continue to attract regulators' attention because they are easy targets for manipulation by stock promoters. There are 3,123 shell companies trading, up from 2,577 at the start of 2010, 2,719 in January 2009 and 2,289 in 2008, says AuditAnalytics.com. Rising suspensions show the SEC is trying to:

•Stop problems before they get bigger. The SEC can suspend trading in stocks if the companies provide false or misleading information or lack current information. Suspensions can be the start of more investigation and are a way for the SEC to stop alleged scams early, says Maureen O'Hara, professor at Cornell.

•Leverage its focus on a specific type of policing. As the SEC develops the ability to identify and suspend companies, it's easier to repeat the process, says Jonathan Macey, professor of law at Yale.

•Get relatively easy regulatory wins. Many of the companies being suspended are nothing more than a post office box and a ticker symbol. The SEC can shut these down, and protect investors from being tricked, with little worry of prolonged legal battles, Macey says.

The SEC's push to stop questionable stocks is helpful for investors who have trouble separating real companies from phony ones as long as they have a stock symbol, O'Hara says.

Some worry, though, that poorly informed investors will still get tangled up in shell-company scams. "Even if the SEC could clean out all these companies ... (gullible) investors will find something else to throw their money at," Macey say


http://www.usatoday.com/money/markets/2010-08-24-delist24_ST_N.htm

Chart of the Day - THES

THES could be starting up after posting a nice late day rally. This stock is the subject of a reverse merger with a building management company called CityTowers. This has not been press released yet, and seeing how some recent reverse merger's have performed, I'd expect THES to trade past recent highs on any new developments.

Friday's Stocks To Watch - EIGH, PRGJ, BGOI, STAU

AWYI this stock is still active, and could reemerge as a big runner at some point in the near future. It traded over 25% of its authorized shares and I think it will gain momentum in the days and weeks ahead. This was a $.012 stock two years ago.

EIGH it's not fun watching other people lose money, but it is a dog eat dog market and as long as your not the one wearing the milk bone under wear you should be ok. Once EIGH's press release hit the wires at 2:20 EDT trying to figure out where the bottom would be as some traders scrambled to liquidate while others set limit orders hoping to catch the proverbial falling knife. Tomorrow should be more of the same. If I had to guess we test today's lows but don't break them in a volatile session.

PRGJ closed at $.0325 today and exactly one month ago I wrote this about PRGJ: this stock is sitting near recent lows. The last time it was at this level it surged over 100%. At $.007 this stock could see a 200-300% gain from here just on valuation alone. I like when I am wrong 150% to the upside.

BGOI looks to be working its way higher in a methodical fashion. This stock looks eerily similar to USOG before it ran 600%+.

STAU record volume for this stock did little to move it as market maker PENA has decided to sit on the ask with a seemingly unlimited supply of shares. I like this stock. I like the story and products behind it. If/when PENA and the dilution come to an end this stock should post a nice run. I think at $.0006/.0007 there is a good chance of seeing 300 - 400% at some point.

Thursday's Stocks To Watch - STAU, IGSM, EIGH, UWRL

STAU some great news out today after the market closed for STAU shareholders.  This stock took quite a tumble, but seems to be getting its legs now.  It's time to add this stock to your watch list if you haven't already done so.

IGSM the pull back from $.004 has gone a little over 50%.  With a float of 199 million shares, a little buying pressure will bring this stock back up to where it belongs.

EIGH EIGHt straight down days.  Tomorrow this stock should see a nice bounce.  If you are looking for a trade tomorrow (besides my new alert) this stock could be it.

UWRL we are getting closer with the close of each trading day.

STAU - An Incredi-Stock?

STAU, Star Nutrition Inc, has started trading actively after falling from $.06 a share.  The stock closed trade today at $.0009 and looks to be working its way higher.  I told my subscribers that in the worst case scenario this stock has a nice bounce in it.

The best case scenario it sees a sustained run as STAU is a stock that has some meat to it. As it stands now the jury is still out on this stock, but there is no doubting the impressive assets this company owns.

The company carries numerous brands available through out the world including Incredisoles (tm), The Spray (tm), Incredisocks (tm).  The incredisocks, for one,  is already starting to get some media coverage.   Even if you aren't interested in the stock, you just may be interested in the sock.  This is an informative piece  , make sure you click on the link to watch the video.  .



Something to take away from the news coverage is that these socks are currently being tested by soldiers in Afhganistan.  These $13 - $19 socks can very quickly turn into $30-$50 a pair if government gets involved in buying them.  After watching the video you can see exactly why they named it the incredisock.

Star Nutrition isn't all about a sock.  The spray is a very marketable product as well.

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The Spray is a collection of 8 different nasal sprays:

 They sell for $19 - $40 a bottle.

How about these Incredisoles?  They go for $24 - $29 each.  Look out Dr. Scholls!   If they are anything like the sock they are worth the money.

  

Finally something to calm your dog.  These spray bottles sell for $19.99 each.


STAU is really coming on the scene and the stock price should follow suite.  Today the company released news to its investors today that should draw more interest to the stock.  They are launching two new products!   A diabetic sock and an incredibrace.

This could be the start of an impressive rally, we'll call it an incredi-rally.

Here is a copy of today's after hours news release:

Star Nutrition, Inc. Prepares to Conduct Hard Launch of "Incredisocks" Product
CHICO, Calif., Oct 13, 2010 (BUSINESS WIRE) -- Star Nutrition, Inc. (PinkSheets:STAU) is pleased to announce the hard launch of its newest product, a modified pair of socks known as "Incredisocks"(TM). "We initially did a soft launch with a few select stores and a limited public relations push," stated Star Nutrition president Dr. Jackson Corley. "But we have exceeded our expectations both in terms of the number of Incredisocks units sold, as well as the exposure our small campaign generated, culminating in the profile of Incredisocks in the local Reno, Nevada CBS News affiliate, and KNVN Channel 24 NBC action news, Chico, Ca.
Star Nutrition is launching two additional products , a new Diabetic sock and Incredibrace at the Canadian Health Food Association expo in Toronto October 23-24. This new sock has a 200 thread count sock, woven with bamboo charcoal and germanium to increase circulation. The Incredibrace products, for carpal tunnel, knees, and low back, will be the first brace line on the market to increase circulation having the same properties as Incredisocks. The company has set up a website, www.incredisocks.com, to act as a clearinghouse of information, as well as online ordering instructions.
Reporting that the company has been overwhelmed with prospective customer inquiries about Incredisocks, Dr. Corley commented, "We are thrilled to finally bring these products to market." Dr. Corley will be a guest on the "LET'S TALK HEALTH" radio show with Dr. Ria on October 14, 2010 from 11:00 A.M. - noon, 1440 AM, WNPV in Lansdale, Pa.
"Incredisocks" are unique socks with bamboo charcoal woven into the fabric. Bamboo charcoal is widely regarded for its absorption and ability to increase circulation. Bamboo charcoal emits negative ions, which interact with body heat to emit the sensation of heat. When combined with a snug-fitting garment such as Incredisocks, the bamboo charcoal promotes blood circulation and has been reported to reduce inflammation, aches and pain.
About Star Nutrition, Inc.
Star Nutrition, Inc. is a publicly-traded health and wellness products company based in Chico, California. Products include "The Spray" , including Z-snore which was editor's choice in the October 2009 issue of Shape magazine, "Pluto Pet" calming spray for hyperactive pets, "Incredi-Soles" shoe insert gel, and most recently, Incredisocks.
SOURCE: Star Nutrition, Inc. 

Wednesday's Stocks To Watch - STAU, BFHJ, IGSM, SNEY

STAU after plummeting from $.06 to triple zero's this stock has started to rally. It has the looks of some recent "dump and run" type stocks, except STAU has some meat behind it. I'll have more on STAU in Wednesday nights blog.

BFHJ the chart is really starting to come together. This stock is trading stronger than it ever has before. I think it sees $.01+ in the very short term.

IGSM after 8 straight positive trading days, this stock has retraced some of its gains. Volume has lightened up and the stock seems to have found nice support at $.002. I think the rally can renew itself from this level.

SNEY this stock has finally turned the corner. I mentioned this stock the other day in my subscriber chat room at $.0013. It closed at $.0038 today on excellent buying volume. I think tomorrow SNEY will see more gains.

Chart of the Day - USOG

This stock was called by Puntagor in our subscriber only chat room at $.0013. It has since broken out in a big way.