Celebrities now infiltrating the stock market

Discussion in 'Wall St. News' started by Range Rover, Jan 11, 2011.

  1. http://www.nypost.com/p/news/business/cent_millions_y5r6uquXPHX43R2NCWX6MN

    50 Cent millions
    Last Updated: 2:12 AM, January 11, 2011
    Posted: 11:45 PM, January 10, 2011

    Rapper 50 Cent made $8.7 million yesterday -- by tweeting.

    The 35-year-old celeb, aka Curtis Jackson, helped pop the shares of a no-name penny stock company he's invested in by 290 percent yesterday after chatting it up this weekend on Twitter, the social-networking site.

    "You can double your money right now. Just get what you can afford," Jackson tweeted about H&H Imports, a money-losing venture out of Clearwater, Fla., that owns TV Goods, a marketing firm recently founded by Kevin Harrington.

    Harrington is best known for his role on ABC's reality show "Shark Tank," which lets entrepreneurs pitch their ideas to potential backers.

    "They are no joke get in now," Jackson told his 3.8 million Twitter followers about TV Goods, which Harrington founded in 2009. It merged with H&H in May.

    Jackson received 30 million shares of H&H in a private placement last October, including a series of warrants granting him the opportunity to cash in as the stock rises: at 15 cents, 25 cents or -- no kidding -- 50 cents.

    For some of the warrants, he only has to put up 10 cents a share, according to a recent regulatory filing.

    Earlier this month, Jackson also "personally endorsed" a line of mobile audio products TV Goods had gained marketing rights to that are made by another Florida company, Sleek Audio, H&H said. Jackson talked up the headphones when he appeared on TV last week from the Consumer Electronics Show in Las Vegas.

    Jackson's reps didn't return a request for comment.

    Of course, Jackson's hype won't fix the cash-flow problems at H&H. The company lost $1.3 million last quarter on revenues of just $292,933. As of Sept. 30, the company has accumulated a deficit of $3.3 million and in March its auditor raised questions about its ability "to continue as a going concern," the company has said in financial documents.

    H&H closed at 39 cents yesterday, up 29 cents, boosting Jackson's 30 million-share stake by $8.7 million.

  2. I can see celebrities pumping and dumping junk stocks or being paid spokesmen for pump and dump scams as a new trend in the future
  3. i guess its legal..
  4. Hello


    Whoever is dumb enough to buy a stock based on a celebrities advice deserves to have their head handed to them.
  5. rew


    It looks to me like Mr. 50 cent is asking for an SEC indictment. But that will be small beer compared to the legal trouble rappers usually get into. Got to keep it real, after all.
  6. cstfx


    This whole thing sounds like a classic pump and dump scheme.

    And his idiot followers fell for it. "I say let them crash!".
  7. nLepwa


    Pump and dump schemes are illegal.

  8. Timmay Sykes sent out e mails regarding 50 cent stock pick. For some silver subscription price he'll tell you all about it.
  9. bigpapi


    Sykes was recently spotted in a park bench holding a penny stock picks for food sign
    #10     Jan 12, 2011