Over the last five days, the stock of Global Roaming and Distribution (OTC BB: GRDB) has dropped 70% on no news. To those familiar with pumped penny stocks, this is unsurprising. The pump and dump scheme is quite simple: a company or a large shareholder pays a publisher to print amazingly optimistic advertisements for the company that are sent out to hundreds of thousands if not millions of investors via mail, email, and fax. The information published about the company is either absurdly optimistic or downright false. The SEC never gets involved unless the statements are verifiably false, so the publishers usually stick to insanely optimistic predictions (which are protected speech, no matter how absurd). While the stock soars, shareholders of the company sell their positions at inflated profits.
As usual with pumped up penny stocks, GRDB is way overvalued, even after its recent 70% stock price decline. With 164.7 million shares outstanding as of the fi...
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A worthless company that shall soon reward its foolish investorsFrom: goodevalue.com
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Here is the synopsis of the book from the publisher:
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