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Stock Detective Light - April 12, 1999...
Stock promoters caught in the SEC's net during Last fall's sweep have begun settling the charges against them. Ed Taxin and the Taxin Network agreed to a federal judge's order that prohibits Taxin and his company from violating the SEC's disclosure rules. He also will pay a $30,000 fine. Taxin and his network were charged with promoting stocks on his radio show, "The Financial Hour," and through a newsletter, "Investor's Chronicle," without telling listeners and readers that companies paid for the hype. Taxin had been paid at least $200,000 in cash and stock for promoting the companies, according to the SEC.
The SEC's efforts to police the realm of stock promoters isn't getting any easier, with new outfits popping up every week. Here are four additions to The List. Two of the sites, Barrignton Report and Cash Cow Magazine, appear to be owned by the same company. NewTrend Holdings is listed in both publications as the organization paid by the featured companies.
Barrington Report offers investors an email newsletter and promises an investors club soon. But for now it appears to have only one client, GS Telecom Ltd., which readers may recognize as a recent Red Light . Barrington does provide full disclosure.
Cash Cow Magazine also contains a profile of GS Telecom Ltd., along with several other "picks," including Mako Capital, previously a Red Light. The site also contains full disclosure.
Cyber-stock.net may be the slowest loading web page we've ever seen from a stock promoter. It's so busy, literally, that most investors probably move on before reading about the company's picks. But if you're patient, you'll find a trio of hype-hungry companies, including one that's already been pegged in our Red Light District. On the plus side, from what we could find, the site contains full disclosure.
Stock Profiler also includes full disclosure and, according to this document, the company is pretty well paid. It has only four clients so far, but the between them those four companies have paid Stock Profiler $20,000 cash, 260,000 shares of free trading stock, 250,000 warrants and 100,000 shares restricted under SEC Rule 144.
Another site that readers have brought to our attention is Fast-Trades, a newsletter that claims a hot hand in short-term investments. Fast-Trades says it accepts no compensation and is not affiliated with any of the companies it picks, so it's not a paid promoter. But its track record looks like a pump 'n dump graveyard.
As always, tread lightly………………………
The Stock Detective
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Please keep in mind that the information on this page is not a complete analysis of any company or security and that no investor should make a decision on the information in this feature alone. Also, it's important to note that no person(s), company(ies) or institution(s) are guilty of any wrongdoing until proven otherwise, hopefully in a court of law, and - thanks to Stock Detective - before you've been burned.
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