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Skymark crosses ethical lines to pump Tradeshow Marketing (TSHO.OB)
Topics: microcaps, penny stocksI know many of you hold Skymark Research in high regard, but even the most strident fan would have to admit that their paid pump of Tradeshow Marketing (TSHO) has crossed the line.
Tradeshow shares shot up this week after Skymark circulated a series of absurd projections. The worst drew a comparison to Shamwow and suggested that similar sales would drive TSHO shares to $30, settling at a target price of $27.51. This long-term target is over 20x current prices, and about 14x Skymark's short-term target of $1.93.
The accompanying text reads:
With (1) the Sham-Wow near $1 Billion Dollars in revenue since its launch late-2007 [click here to view entire article], (2) news today that Tradeshow Marketing Company Ltd. (TSHO)’s channel selection has been made: further confirming the Ultimate Squeegee infomercial launch is imminent, and (3) with the Tradeshow Marketing Company Ltd. (TSHO)’s management now mirroring the Sham-Wow’s marketing strategy; our analysts believe that Tradeshow Marketing Company Ltd. (TSHO)’s first product has the potential to see massive success.
Below see a chart outlining Tradeshow Marketing Company Ltd. (TSHO) if the Sham-Wow were its product, with its tight share structure [23.2 Million Shares Outstanding], which potentially could be the performance of the Ultimate Squeegee in the coming years. Based on the fact that the Ultimate Squeegee has done comparable numbers at the tradeshows up until the Sham-Wow’s infomercial launch, the Ultimate Squeegee could perform as well as the Sham-Wow with the upcoming infomercial driving its market.
Skymark calls this blatant hype a "what if" scenario. I have another "what if" to ask: what if Skymark wasn't being paid $5000/month to publish this crap? I gave Skymark the benefit of the doubt, but their $30 projection is grossly misleading. And they know it.
DISCLOSURE: No position.
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These projects are realistic based on 1.93 being a very very conservative target on the fact they sell very less squeegees..only 1 million.
It is not misleading at all.
It is a very clear "what-if".
They made their $1.93 target as bold as possible.
They showed the potential if it performs along the lines of the Sham-wow: which is what the market-test was ran beside, and it did perform on-par with the Sham-wow at the tradeshows.
But I'm pretty sure everyone understands, it is a big- "what-if". Everyone also understands they aren't just one product, 60 products, 60 shots at an average of $20-70M in revenue.
Though I do agree, I think perhaps a few too many people DID NOT read the full email, and instead just looked at the chart and bought hoping it would go to $30.00. This I agree is not a good way of investing, but it is not the responsibility of Skymark to babysit investors.
The email was very clear with a "what if" scenario, with their $1.93 target clearly marked. Any experienced investor such as myself, appreciates this "what if" scenario to help picture the possibility and potential, but I am not going to kid myself:
The chances of $30.00 are only if you get a "home-run", which is more the exception rather than the norm- and I think all long-term shareholders realize this- since most of us have been holding since below $0.50.
Great post however, and great article- especially for those who DID NOT fully read the email- great reminder to be skeptical, and scrutinize everything. However, the research does back-up what Skymark said. It is not misleading. Cesari Direct has done billion dollar successes before, Sham-wow was a billion dollar success, and the market-test was ran beside Sham-wow, and if TSHO gets sales along Sham-wow, it is a $30.00. But I agree, it is not good to buy with the expectation that the stock will 100% risk-free go to $30.
-James Malone
-maone15
James,
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First thanks for commenting. I agree that Skymark backs away from its projections in the small type at the bottom. But it does call the $27.51 a "target price" just like it calls the $1.93 a short term target. At any rate we can agree that Skymark is doing a good job pumping the share price — whoever paid $5000/month is getting their money's worth.
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Congratulations on your trade. I hope this is a big winner for you. I have no skin in the game now, but as I mentioned before may short later this month.
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ps if your comments are not showing here give it a day. Sometimes, for reasons that are not clear to me, some of your comments need to be manually approved. I will always approve when I see them.
The reason james malones' comments arent showing up on your site is because he's a spammer paid by skymark to spout BS…he's posting on timalerts.com under the pseudonym mordechai but the idiot gives himself away too easily…can you smell the corruption? disgusting/predictable
Hey Tim thanks for the heads up. I knew you would be all over this pump & dump. James: (1) are you the same person commenting as mordechai on TimAlerts? (2) what is your relation with Skymark?
Hi Tim, Hi MS:
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Follow your stuff Tim, appreciate the realism you bring to the Penny Stock Markets. 99% of all these Pinksheets and BB's are just trash, you're right about that. However, you have to be careful- there are a few real ones down here (not many), but a few.
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To answer the first, no I am not "mordechai". I'm sure you can check your server logs, compare the two IP's- and unless there is some brilliant stroke of luck, they will probably be entirely different states, if not countries. Not sure who "mordechai" is, I moderate the TSHO forum at ihub- haven't seen him around there (then again, we all use screen-names, not real names).
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Two, I am a client of Skymark- I pay $49.95/month, I've also met with them in person. I would encourage you both to do the same. They are based in Canada, they post their real office at the bottom of every email- I know, because it's the same address I visited. Young group of hard-working, honest guys. You can tell the integrity from the lack of "pumps" they do. Normal "pump and dump" firms, run promotions every month, if not every few weeks. Skymark has one per quarter, if that- all of which continue to rise in PPS (you can't fake real-time performance).
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I do agree however that the recent price jump in TSHO may be starting to get closer to overvalued territory, at least- with no confirmed numbers off the infomercial. The conference call on Wednesday may change this, depending on what is released. Despite TSHO being a real company, it does not prevent it from trading too high. The crowd hasn't always been known to be overly successful, which is how most of us here make money- is it not? My R/R rating is still 1.27, so still in the positive, so it is still undervalued compared to potential, taking into account risk- but with the recent price movement, that R/R rating is much lower than the previous 2.43 rating not two weeks ago.
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Therefore I would agree, we are nearing overvalued territory. With my simple model (again, only considering one product, since that's what most shareholders are holding for), overvalued territory, considering your risk vs. potential payoff would be above $1.885.
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However, Tim- your posting argument for "the reason james malone's comments aren't showing up on your site is because he's a spammer paid by skymark to spout BS" holds no weight. Even if it were the case, it would have no bearing on whether my posts would show up or not on this website. I do not appreciate anyone slandering me without making any effort to contact me first- very much considered to be rude and inappropriate- in any forum.
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To both MS and Timothy Sykes. All of my posts are well-reasoned, and argued fully- with facts, not emotion. Granted MS, you have been very patient and well-respected for taking time to consider the points of this forum. However, a note to Timothy Sykes: to be right out of a blind assumption is no victory. Just because 99% of all emails on a stock are spam and pump and dumps, does not mean Skymark is. It creates a very high-probability that this is the case, given your knowledge of the situation and experience with them: but it is no basis to make a definitive statement. I would encourage you to take time to explore you suspicions.
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I suppose you both can tell, I have a strong scientific approach when it comes to stocks, and I leave my emotions at the door- exploring strictly to the facts of the matter at hand. I have no interest in creating popularity for myself through a blog, nor do I have a hand in subscription dollars through a website- I am an investor with money invested in this stock- and have shared my conclusions as to why I have followed it since $0.001.
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To Timothy Sykes, perhaps you can see something that I cannot- in that case, please share. But in the years I have followed and researched this company, there has been nothing to indicate that it is a "pump and dump". All of Skymark's numbers are reasoned on facts, which unlike other emails- can actually be confirmed to be true (I know, because I double check everything, even from Skymark- it is just good habit).
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Feel free to live up to the challenge, however- as of right now: your post holds no more weight than a "hunch".
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P.S: you may want to apologize to the poor soul "mordechai" over at your website, perhaps you mis-judged him. Skymark has thousands of subscribers, he could simply be one of theirs. For example, there are a few hundred over at this board alone: http://investorshub.advfn.com/boards/board.aspx?board_id=8990. That message board alone represents several million shares of TSHO ownership, all from well-reasoned, experienced investors. Not pumpers, no bashers- just investors who care about their money. You can read every post- the entire history is recorded and published to the public forum.
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James Malone
maone15
@James: Thanks for clarifying. I take you at your word that you are just a subscriber of Skymark.
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Completely disagree though that Skymark's treatment of TSHO is anything but a blatant, unethical paid pump. Not sure why anyone would defend this conduct. You and I do agree on one thing: Skymark is hard working. They have more than earned the $5,000 they are paid to inflate TSHO pps price.
MS, as per your last post- Skymark is sending out emails only to their subscribers. As paying members it would be nice to get updates from Skymark regarding the stock they recommend. If you go back to the mailers, some of them are just recap of the PRS and what to expect as revenues grow. There is nothing wrong with that.
Brokerage firms do this all the time-they put analysts on behind different stocks. Goldman Sachs comments on different stocks, Bank of America, Citi=they all do it.
Just because a company is promoting the positives of a company does not mean they are pumping it-its called recieving updates. Maybe some people don't have all their time to do the DD and break down the "balance sheet" or possibilities. Skymark does that for you in the emails.
Timothy Skyes in his blogs breaks down why his picks are pumps and dump.
So just don't pick on a company just because they are promoting a stock.
We are not stopping you from posting your opinion why one should not buy TSHO but at least back it with validated reasons that why its not a buy and if I have to come up with a reason why the stock is not a buy well the only reason I can come up with is that they will not be successful in selling the product. After them not succeeding in the squeegee they will totally give up and forget about the other products.
Now if you believe this will happen then you should not buy the stock. However if you do believe that they will see at least 1 million squeegees then $2 is justified for this stock and if you believe that they will indeed carry on with other products and sell it as well and make revenues off of that then we are looking at a much higher pps.
So let the reader of your blog decide which way they want to bet.
@MS, thanks for the reply- I am also able to post on your comment wall much more expediently- thank-you.
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In regards to Skymark's treatment of TSHO as a "blatant and unethical pump", I respect your view- but I do not understand it.
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Why do you consider Skymark's emails about TSHO are unethical? They have not stated anything out of the factual realm of possibility for TSHO, and made very clear assertions that a $27.51 target price is a big "what-if". That target was not found anywhere in the main email, they even placing a full disclaimer of how the possibility was calculated and under what circumstances and conditions before even mentioning that price.
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They're main source of revenue comes from subscribers, and they have not given any unrealistic targets on TSHO (considering their target is $1.93). It comes very close to an what an individuals numbers and personal buy/sell points would come to, even without Skymark placing a target on it.
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I would agree though, as mentioned before: that without any infomercial sales numbers, we are getting much closer to overvalued territory- again, when just considering the first product (which is what most investors I assume are buying for). For my own R/R, that would be fair value, given the risk/reward- at $1.885. Anything above that- if you are holding only for the first product, would be profit-taking zones.
(My sell points are much higher, but then again, I'm holding for much longer and considering other products).
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And yes, I will agree with you on that part: TSHO definitely got its $5,000 worth, LOL. Skymark is also very-well compensated from its subscribers, they make millions every month just from the subscriptions- not to mention the little bonuses us happy customers like to send them :)
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Conference call tomorrow should be interesting!
OMG, you guys are the biggest idiots in the world.
1/ do you actually think you are convincing anyone other than the mentally challenged with your BS?
2/ stop wasting everyones time by posting such BS.
I suppose you still think the TNUS mushroom product is set to explode, or IMGG will get FDA approval, or maybe not cause you arent getting paid by them. You morons, stop spamming and influencing the odd stupid idiot to invest and lose their shirt… Oh, on second thoughts, keep it up. My six figure salary comes from shorting these POS after you have pumped them.
Chiggles,
We are not trying to convince anyone to buy..if anyone is trying to convince anyone its blogs like this convince people not to buy in fact not to even do their homework!
All I am doing is encouraging people to do is not to believe what is read, rather do your homework and then decide whether to buy or not.
When I post things, I am posting scenerio in what would make the pps a fair price and IF they do what I said what their price can be in the future. Lets just say this is some groundwork I am laying down for people to get their homework started.
When I mean do your homework- I don't mean people should read other peoples opinion or base their own opinion on their past experience of penny stocks. Yes many penny stocks out there are nothing but pump and dump, however before anyone shorts stocks or even buys stocks they should do their own homework and make sure if its a legitimate company or a pumped up company and to see if its undervalued or over valued.
Just because a penny stock is .00002 does not make it cheap and just because a stock is trading at $1.50 makes it expensive. Behind these numbers you have to consider outstanding shares, market cap, and future revenue, debt, etc.
If a company is bring in 100 million in revenue and has 200 million in debt where as a company is bringing 50 million in revenue and no debt which company is a better value?
Another scenerio…if Company A is bringing 100 million in revenue and has 100 million outstanding and then there is Company B bringing in 50 million in revenue (assuming both companies debt is 0) and Company B has 1 million shares outstadning which company is a better value? Company B because each shareholder gets a bigger chunk of the profit since there are less shares compared to Company A.
If, buts and maybes never cut it in real world business. What if the company had 50m revenues, 100m revenues, hell why not just say 1 billion revenues. Stop posting such crap. Obviously your a paid spammer or have a position in this POS.
My goal is nothing more than to expose idiots like for what you really are.
p.s. I have contacted the SEC and other relevant anti-fraud agencies about this company and its CEO, who I believe is engaging in some of the most fraudulent activities I have seen from a OTCBB listed company in recent times.
No position in this piece of crap, just love seeing these stocks getting halted and CEO's exposed.
Schiggles,
Na 1 billion is not realistic..that means that every household would have to buy 20 of TSHOs product which is not going to happen lol…However 1 million, 2 million units being sold is highly possible. This is based on past market evaluations of similar infomercial products. Its like opening up a gas station and worrying about not making a sale. Please!
As for you contacting the SEC-well maybe you did but I would like to know on what basis? That people are buying the stock on future revenues? The company nor the CEO has not done anything wrong where we would have to worry about the SEC halting the stock or "arresting" anyone.
They never put out misleading PRs. All of their PRS are true. They never projected any false revenues. The company never said anything like we WILL make 20 million. In fact they never gave any future projections except for the fact they plan to launch this product the week of Feb 22nd-which they are-spots have been booked, back end ops are in place. Also they mentioned that they Planned to launch 1 product every quarter.
So what fraudulent activity are you referring to? The only thing I see that may bother you is you cannot understand why the PPS has moved up so much.
Well I would be more than happy to explain that to you.
In 2005 til mid 2009 they had stores and franchises for the products. However for whatever reason-can blame it on economic meltdown-the company started losing money on their retail stores. They decided to shut that down. That is why the pps tanked to .01 cents because people thought ok this company is finished (kind of like bankruptcy). However they reorganized their business in mid 2009, cut overhead expenses and decided to go through the route of selling products through infomercials. That brought some hope back into the stock and the company and people started buying the stock.
Then they announced that they are going to work with Cesari Direct on their campaign and because of the success that Cesari usually has people started projecting possible revenues using research from the DRTV industry and success.
When people came to realize that an average revenue for a product is between 20-70 million dollars they looked at TSHOs market cap of 24 million and realized that if this works out this is a real bargain so that is why people are buying up shares at this price.
Again the whole stock market, Wall street is a big IF. Everyone looks at futures of the company and what type of revenues it will bring in.
http://www.thestreetsweeper.org/undersurveillance.html?i=280
[...] TV infomercials, SkyMark had already predicted that the company’s stock could hit $30 a share based on future sales. Incredibly, the Microcap Speculator noted, SkyMark compared TSHO [...]
so waht do people now think of TSHO and skymark
THEY ARE A COMPLETE JOKE.
LIES…ALL LIES…..BUT THEY ARE REALLY GOOD AT LYING.
DONT GET INVOLVED…