Seeking Alpha
Short only
Profile| Send Message|
( followers)

Summary

  • A lot of False information in the overly bullish email campaign raises risk of an SEC Halt.
  • 26,000,000 Free Trading Shares that could be dumped into the Stock Promotion.
  • Capital Financial Media promotions typically perform terribly.

Green and Hill Industries, Inc. (OTC:GHIL) is a name that I believe is currently the target of a penny stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I also believe that Green and Hill Industries, Inc. is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent:

Little Revenue. Debts. No Business. Bright Future?

As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $101M market capitalization that this equity commands is beyond ludicrous. With $1000 on hand and $41,000 in operating loss. It's my suspicion that the purpose of this company is not to succeed, but to sell stock. The recent volume is due to overly bullish promotional mailers.

Picture of $GHIL Chart

You can see that trading in Green and Hill Industries, Inc. started seeing really increased volume on June 3, 2014. You can see it was around the this time the landing page went up. Coincidence with the time of the hard mailer and increased volume in Green and Hill Industries, Inc? Absolutely not.

(click to enlarge)

Online Landing Page

(click to enlarge)

Disclaimer

(click to enlarge)

Landing Page Details

Go here to see details about the landing page.

"Green and Hill Industries, , the company featured in this issue, appears as paid advertising by Development Solutions Co. Ltd. to provide public awareness for GHIL. Breakaway Stocks and List Data Solution (LDS) have used outside research and writers using public information to create the advertisement coming from Breakaway Stocks about GHIL.

LDS has managed a total production budget of up to $200,000 per week for advertising efforts and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. Breakaway Stocks is paid $5,000 as an editorial fee from LDS and also expects to receive new subscriber revenue as a result of this advertising effort."

You can see obviously someone is interested in increasing public awareness for Green and Hill Industries, Inc. Most likely the insiders, who own millions 26,139,212 free trading shares in Green and Hill Industries, Inc. Why else would someone spend $200,000 to increase public awareness? At these levels, those are worth about 25 million! It is worth it to them, because if they can bring in buyers and liquidate their shares around these prices, that can mean millions in profits! Running pump and dump schemes is a lucrative business, and that is why we see it way too often. My job is to wake you up.

Promoter History

The promoter behind Green and Hill Industries, Inc. is Smallcap Fortunes/Capital Financial Media.

How will the Green and Hill Industries, Inc. story play out? It will act like the rest of their promotions. People who buy Green and Hill Industries, Inc. will lose and the insiders will laugh all the way to the bank. Interested in some of their past promotions? Below are some of their promotions, You can tell when the promotion starts by seeing when the stocks start trading large volume.

New America Energy $2,100,000 budget see here. Promotion started in November.

American Energy $1,700,000 budget see here. Started in April.

(Click to enlarge)

Stevia Nutra Corp. $1,275,000 budget see here. Started at the end of May.

(Click to enlarge)

LifeTech Industries $600,000 budget see here. Started at the end of November.

False Information?

This article here goes into detail on some of the misinformation in the overly bullish landing page promotion.

"A Canadian medical marijuana branding company issued a rare rebuke to a Palm Beach County stock promoter after his newsletter reportedly caused its penny stock to spike in value."

Among the false statements the company claims Dickson made in his newsletter:

  • That a huge profit and giant-sized returns might be made from trading in the company's stock.
  • That Ross' Gold will be sold in the United States where in fact, the company has no such plans.
  • That Ross' Gold is a marijuana company where in fact it is a licensing and branding company.
  • That the company is the first publicly traded marijuana company in Canada.
  • That the company's CEO made money for outside investors as a real estate developer where in fact no money was made for outside investors.
  • That the company could be the subject of a buyout where, in fact, there is no buyout or planned buyout.

The Securities and Exchange Commission warned investors in May about speculative claims from marijuana penny stocks.

With misinformation like that out there, I wouldn't be surprised to see an SEC halt.

Recent SEC Halts

The SEC is finally cracking down on pump and dumps lately. Here is a list of big stock promotions that have been halted recently. I believe Black River Petroleum Corp. has a chance to be next. Stocks that get halted tend to reopen 2 weeks later down 70%+. Imogo Mobile Technologies Corp. was halted five trading days after my report was published. Makism 3D Corp. and Life Stem Genetics were two pumps that halted after my articles, as well.

  1. Imogo Mobile Technologies Corp. (OTC:IMTC) halted February 19, 2014.
  2. Centor Energy, Inc. (OTCPK:CNTO) halted February 11, 2014
  3. Makism 3D Corp. (OTCPK:MDDD) halted December 13, 2013.
  4. Guar Global Ltd. (OTC:GGBL) halted December 6, 2013.
  5. Nevada Gold Corp. (OTC:NVGC) halted November 27, 2013
  6. Life Stem Genetics Inc. (OTC:LIFS) halted November 25, 2013
  7. Sovereign Lithium (OTC:SLCO) halted November 15, 2013

My Recommendation

If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have showed you that the reason for the promotional mailers indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. In this stage of the promotion, with the stock halt risk, it is not worth staying long overnight to make $.05-$.10 more in gains when there is a risk of 70% in losses.

It's the same story with all the Capital Financial Media past hard mailers, why would Green and Hill Industries, Inc. be any different?

Disclosure: The author is short GHIL. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Source: Green And Hill Industries, Inc.: Why This Promoted $101 Million Company Could Drop 70%