Anyone who has had an eye on Penny Stocks over the past 10 days has seen the meteoric rise of IDO Security, Inc (OTC: IDOI) from a starting point of around a quarter the stock rose to a high of $0.74 on massive volume (well over $10M in dollar volume the last few sessions) before collapsing this morning after the announcement that a private citizen was suing IDOI for violating codes 17529.5 (anti-spam)
George Sharp filed the action in San Diego California:
""In his complaint, Mr. Sharp states that the Defendants deliberately hired offshore promoters and/or advertisers to disseminate unsolicited emails under the identities Stock Castle, Wall Street Penny Stock Advisors, Hottest Penny Stocks, Magic Penny Stocks, Obscure Stocks, and Ultimate Penny Stock, imploring him to buy IDOI, EMPIRE and MUSTANG stock; and, in spite of multiple attempts by the Plaintiff to opt out of these emails, the spam continued to be sent to his inbox. Under BPC Section 17529.5, violators are subject to pay damages of up to $1,000 for each spam email to each recipient. Mr. Sharp is also seeking a preliminary injunction against the defendants in order to prevent the practice from continuing.""
Regardless of his intentions and they are suspect; Mr. Sharp effectively destroyed IDOI stock this morning sending it into a nose dive of epic proportions. In less than an hour the stock dropped from the mid $0.70 to lows of $0.38.
IDO Security, Inc is Headquartered in New York with a subsidiary in Israel, IDO Security designs, develops and markets the patented MagShoe(NYSE:TM) shoe scanning device (NYSE:SSD), filling a critical void in today's detectors by extending screening to the lower body and feet. MagShoe(TM)'s "shoes-on" design maximizes security, thoroughness and accuracy while eliminating the need to remove shoes for increased convenience and safety; neither invasive nor harmful to the body as some of the other screening devices currently used in the marketplace. Ideal for security and loss prevention at virtually any facility, MagShoe(TM) is currently in use worldwide at international airports, cruise lines,
There is little doubt that the IDOI is guilty of the charges levied by Mr. Sharp but it does not seem fair that one person should have the ability to so easily destroy so much in market value. Shareholders of IDOI lost millions this morning because of Mr. Sharp's lawsuit; maybe they should considering suing him?
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.