Tagged: 463%

SEC suspends shady stock after it skyrockets 463%


The risks of trading penny stocks NeuroMama has admirable ambitions to become the chase engine, amusing arrangement and e-commerce belvedere of the future. The abstruse aggregation additionally wants to body 39 casinos in Mexico and a ability bulb that generates abundant electricity and baptize to amuse 10 actor people. NeuroMama s (NERO ) banal has additionally aloft eyebrows, aerial 463% in aloof the accomplished eight months. NeuroMama now sports a bazaar appraisal of $35 billion, almost the aforementioned as Tesla (TSLA ) , the electric car aggregation transforming the auto business. But here s the problem: NeuroMama hasn t appear absolute banking after-effects back 2013, back it listed aloof $4,721 in assets, and the U.S. government suspects its brief acceleration is actuality fueled by abhorrent play. This week, the Securities and Exchange Commission abeyant trading in NeuroMama, which has the ticker attribute NERO. The bureau cited apropos about the accuracy and capability of advice in the marketplace about who controls NeuroMama s operations and potentially artful affairs in the company s stock. Steven Schwartzbard, who is listed as NeuroMama s chairman, did not acknowledge to requests for comment. Calls placed to the Baja Mexico appointment of NeuroMama went unanswered. The aggregation ahead listed its address in Russia. Related: Stocks are hot again. But are they too hot? Dozens of blush area stocks apoplectic NeuroMama is the latest archetype of the accident adverse bodies who advance in stocks that are not traded in the banal exchanges registered with the SEC, such as the NYSE or Nasdaq. These over-the-counter trades, contrarily accepted as blush area stocks, are at the affection of absolute banking crimes depicted in the Wolf of Wall Street cine starring Leonardo DiCaprio. Unlike ones listed on the exchanges, these stocks are agilely traded, authoritative them accountable to acute animation generally acquired by rumors and speculation. Blush area companies additionally don t charge to attach to the aforementioned aerial levels of advertisement requirements. Pink area stocks accept the befalling for absolute allotment because they tend to be abate cap companies and illiquid. But you additionally accept the abeyant for absolute fraud, said Charles Whitehead, a law assistant and administrator of LawTech at Cornell University. There are absolute risks here. The SEC has accelerated efforts to basis out abeyant artifice amid blush area stocks that mislead investors. The bureau has apoplectic trading in almost three dozen stocks so far this year alone, accent the added absorption actuality paid to the problem. A awning grab from NeuroMama s web site. Related: Stocks are quiet. Is this the calm afore the storm? Red flags NeuroMama is the latest. The SEC said it s anxious about false statements fabricated to investors. Specifically, the SEC activity was triggered by affirmation that NeuroMama may accept addled investors by cogent them it is in the action of accepting listed on the Nasdaq Banal Market, bodies accustomed with the amount acquaint . In fact, the company s website calls itself a hot Nasdaq stock. Now that s serious. Someone may try to goose up the bazaar cap of a banal by putting out rumors about advertisement on the Nasdaq, Whitehead said. Another red flag: NeuroMama s $35 billion bazaar cap is almighty aerial for a aggregation that few accept heard of and that hasn t appear after-effects — let abandoned absolute acquirement — in years. (Just for context, Macy s (M ) has a bazaar cap of about $12 billion and Southwest Airlines (LUV ) of $23 billion.) $35 billion is somewhat of a fabricated cardinal and may be a absorption of the actuality there was manipulation, Whitehead said. He explained the amount may accept been aggrandized by wacky, off-market deals. NeuroMama s amateurish accumulated website should be a red banderole in itself. Riddled with grammatical mistakes and spelling errors, the accumulated description reads like a cantankerous amid a self-help book and a adumbral Craigslist ad. Money, it s true, can t buy love…but not accepting money can absolutely abort it, one area of the armpit reads. It continues: Let us activate to accomplish our dreams — our good, old appearance (sic) money authoritative dreams — appear accurate bigger than either of us anytime dared imagine. Those dreams may now be on hold, conceivably indefinitely. (New York) First appear August 16, 2016: 12:30 PM ET