JAMN has sounded another alarm in the meantime. Specifically, JAMN states that “unauthorized and unaffiliated Internet stock promoters” have generated artificial demand for its stock and potentially “artificially inflate(d)” the prices for its shares. JAMN issued a similar warning last week, when it quietly filed an 8-K overlooked by investors loudly courted by paid promoters who kept touting the stock regardless.
On Monday, with JAMN plummeting on TheStreetSweeper’s investigative report, one of those promoters – the infamous “John Bell” -- boldly pushed forward with his aggressive publicity campaign even after his Internet hosting service pulled the plug on his website. That day, Bell feverishly issued emails to investors blaming the “temporary downturn” in JAMN shares on market “manipulation” (of all things) and urged them to buy the plunging stock for almost guaranteed gains.
JAMN kept falling like a knife, anyway, wounding investors who followed Bell’s advice and tried to catch it along the way. The stock, which fetched $5.17 when TheStreetSweeper published its big report, had lost more than half of its value even before the company dropped all of the bombshells packed into its new annual report.
JAMN investors, bleary-eyed after combing through that after-market report or – even worse – wide-eyed after waking up to discover the devastating news that it contained – suffered through more bloodshed on Wednesday. JAMN swiftly plummeted another 35% to $1.50 a share, down more than 75% from the $6.35 peak it had reached (on the very day that Bell’s website disappeared) just one week earlier, as stockholders rushed to dump millions of their rapidly fading shares.
At least some of those shareholders, influenced by Bell’s latest – and arguably most egregious – tout had been banking on surefire gains instead.
“There will be millions of dollars of buying coming into JAMN,” Bell assured investors as the stock spiraled lower on Monday. And “when millions of dollars of buying come into a small-cap company, there is only one way the price can go. Up. It’s guaranteed. It’s mandated by law.
“This is as close as you’ll ever get to a ‘sure thing’ in investing … (And) you and I both know it’s going to happen.”
As it turns out, however, those faithful investors knew far less than they ever imagined. Thanks to promoters like Bell, they clearly thought they were buying stock in a hot coffee company. Instead, they woke up to the eye-opening discovery that they had placed huge bets on nothing more than a bag maker – still classified as a mere “shell” company – and wound up becoming misled bag-holders in the end.
thestreetsweeper.org |
