www.southendstockpickers.com

[Soliel]

Do any of you have experience with this website?

I went there for the first time and it seems like they have a "pick of the week" but nothing else.

I didn't see any archives of past picks or what picks have come thru.

Do any of you use this website, and had any luck?

Soliel

[ItsJustMe]

I clicked on that link the other day and noticed the same things you did. I'm guessing it's just a "pump and dump" site. They buy a penny stock and then place it on their site to try and get others to buy it and run the price up for a week.

Then they dump it and buy a new stock and put that one on their site. If they can get enough followers (or send out enough mass emails), it will work great for them but if you're a follower, you'll get burned.

I'm new to penny stocks, but I'm a CPA (now a business owner) and I tend to be skeptical by nature and I've picked up on a lot of things in the penny stock world that can be a little financially deceiving.

Let's take Rush (RSHN) for example. I invested $3,000 in that this week and made a killing Friday, but I take the comparisons to Hanson with a tiny grain of salt. I noticed in the investment forums on Friday that Rush Net, Inc. is only the marketing arm for Rush Beverages, Inc. which is still a privately held company.

That means you aren't investing in the actual beverage company, you are only investing in their marketing subsidiary so the comparisons to the explosion in Hanson's stock may or may not come true and I'm betting "not" on this one.

My guess is that at some point, if Rush really does take off, the owner will take the beverage company public using a reputable investment bank and exchange the penny stock investments in their marketing sub for stock in the beverage company.

Just an educated guess on my part and I have no clue how high the RSHN stock could go before that happens but savvy investors are going to know that RSHN is at the total mercy of the private owner of Rush Beverages so I suspect there is going to be a limit to its growth since it doesn't include the whole enchilada.

In other words, the private owner could change the marketing agreement tomorrow and devastate the entire value of RSHN and while that may not be likely, it IS possible so bigtime investors will likely say "no thanks" and wait for the whole company to go public.

I've gotten a chuckle out of examining the financials for some of these companies because they aren't much bigger than my own company and none of them are profitable.

Don't get me wrong. I'm enjoying this - at least until I lose my shirt - but I've learned in one short week that there are a lot of scammers out there and even the companies that look legit and have a lot of potential like Rush Net, Inc. aren't exactly what they appear to be.

Buyer beware...;)

[dinaro]

Robert Corr is president of the public Rushnet Inc and private Rush Beverage Company so both are in his stable and are more than just 2 seperate companies with licensing agreements.It is like Nike being just a brand name which licenses its name and logo on athletic shoes made in factories in Indonesia,Philippines,etc.,or Pepsico having its licensed agents and local bottlers in every country.Rushnet is directly responsible for the marketing of Rush which would go nowhere without it so it is actually the more important part of the business than the actual manufacture and bottling of the drinks itself which could be licensed out to beverage bottlers anywhere.My sister worked for Jones NY a 4 billion apparel company with over 13000 employees and includes brands like Jones New York,Anne Klein,Kasper,Easy Spirit,Gloria
Vanderbilt,etc.,and it is all about marketing and brand names and the clothing and shoes are all made in factories in China,etc.

[mike sl600 canada]

hey dinaro thanks for clearing that up, im going to buy in monday morning that latest bit of news worried me a bit but here goes i dont want to miss out on this potential moneymaker, i should have bought a week ago but better late than never

[ItsJustMe]

Dinaro, I greatly appreciate your tip on Rush (made me a lot of money this week!) so I agree with you that it has a world of potential, but the critical investment value of Rush is this: Who owns the brand name?

If Rush Net owns it, then you are correct - that is where the value lies and the bottling operation is meaningless. However, if Rush Beverages owns it, then your comparisons to Nike aren't relevant. Nike and every other top public company that subs out production owns their brand.

I haven't seen that critical question addressed so I'm left to draw my own conclusions and as a skeptic who has dealt with a lot of private business owners over the years, my conclusion is this: Since Corr owns both entities, why didn't he take everything public and eliminate the question? The fact that he kept part of the company private tells me that he probably kept the NAME private as well.

I'm just guessing based on experience, but I'll lay money that the Rush brand name is still privately owned by Corr and as long as that is the case, institutional investors will never buy into it...

[soyd]

The Wonder of Penny Stock..This is going very well folks..and there seems to be some profit still to be made but do remember...Diversify and Dont invest what you cant afford to lose.

SD.

[dinaro]

It's good and healthy to be skeptical and my accountant and most of the accountants I've known are the sharpest people I know.Took some Fifo-Lifo
courses myself at Cornell for my economics degree.

If you have any doubts you can sell and take the profits,although I think this post-Expo week will be a good one as rumors from spies at the Expo talked of a signed deal with one regional chain and talks with a big national one,so you may be able to squeeze some more dollars out of this.

I have no doubts myself as Rush is Corr's baby and it's all in the family with him and Rushnet is finally his ticket to the big time.Rushnet is also the company with the Japanese market,Whole Foods,Christie Communications,etc.


Robert Corr, president of RushNet, Inc., stated, "Following our recent news of RushNet's entree into the huge Japanese market, the company has been inundated with calls from overseas distributors who want to sell our ginseng-powered, non-caffeinated, 100% natural energy drinks."

Robert Corr, president of RushNet, Inc., said, "We are delighted to join with Whole Foods® in providing consumers with highest quality all-natural beverages. Whole Foods® operates 181 supermarkets in the U.S.A., U.K. and Canada and leads the natural food and beverage juggernaut."

Robert J. Corr, president of RushNet, Inc., stated, "We are delighted with the response of key Japanese executives to our licensed beverages containing Wisconsin-grown residue-free American ginseng (Panax quiquefolius).

[ItsJustMe]

I have no intention of selling. It seems like Rush is taking off and like you, I'm in this one for the long term just to see what happens! ;)

I've just dealt with enough small business owners before becoming one myself to know that they don't like giving up control. The fact that he split his company and took one side public makes me suspicious that the true value (the brand name) is still private and he's using the distribution end to raise capital.

That is actually a pretty sharp strategy that I had never thought of before. I'm not concerned at all that Corr is going to rip off the investors of Rush Net. That is his company too and if he did act unethically, it would kill his chances of ever attracting big time investors again.

That is why I have no concerns about being an investor in Rush Net and I think it has huge potential. However, I still think at some point, if I'm right that Corr still owns the brand, he will take the whole thing public with an investment bank and do a stock exchange with us on the new stock.

Because I am right that if Rush Net doesn't own the brand, pension fund and other institutional investors won't buy in whether they trust Mr. Corr or not. Even though the CEOs at Nike and Dell founded their companies, large institional investors can still get them fired if they don't perform. If your CEO owns the brand name, however, institutional investors are at the mercy of one single man. They won't put themselves in that position.

By the way, macroeconomics was my favorite subject in college. I worked as a CPA and CFO for over 15 years and hated every minute of it until I started my own internet company in '97. I enjoy what I do now, but I've geen getting bored which is why I'm starting a new company, invested in dinar and now am getting into penny stocks.

Dinar has turned out to be incredibly boring and the new company is taking time to get off the ground so thanks for the penny stock tip - it's exactly what I was looking for! :D

[Soliel]

I have a question for both of you....do you think Mr. Corr wants to keep control to keep the product high quality? What I understand about publicly traded food/beverage companies is that the product ends up becoming poorer and poorer because of the pressure to cut costs. Maybe Mr. Corr wants to keep his Ginseng drink free from chemicals, caffeine - I would not be surprised if there was pressure to put caffeine in it, look at Hansen's line of "energy" drinks- and other trendy and cheap ingredients.

It's just a thought...I by no means know much about this.

Also, I would love to learn about this world of investing and the ins and outs of it...any books to suggest?

PS...I am amazed at the fact that if I have one million shares of Rush, and it' goes to only a dollar a share....that means I am a millionaire??? Wow

[dinaro]

I hope he keeps the formula and ingredients the same but it is true that many times the bigger a company gets the more pressures it receives to change and alter the product.
Corporate and shareholder pressures can arise to cut costs with new suppliers or ingredients or to change to cater to marketing strategies and target demographics.

There are many books on trading but not many on penny stocks specifically but the general trading books all apply to penny stocks as well.
A few I like include Toni Turners books like A Beginner's Guide To Short-term Trading,Peter Lynch's One Up On Wall Street,Benjamin Graham's The Intelligent Investor,Investing For Dummies,etc.,are all good books.

Some recent investment books I also really like are Safe Strategies For Financial Freedom and Automatic Wealth:The Six Steps To Financial Independence which aren't stock-specific but include sections on the stock market as well as everything else to build wealth in every investment field.

[ItsJustMe]

Okay, Soliel mentioned the price going to $1 so I've done some due diligence to see if I could find out what the profit potential is for Rush Net or if I could find some financial info for them. A few points:

1. I could find no financials to give me any indication of Rush's potential profits. Alas, that is pretty common on pink sheet companys that aren't required to release it I'm afraid.

2. On enjoytherush.com, at the bottom of the page, it says that "RushNet, Inc is the exclusive marketing agent for Rush Beverages, Inc and brand owner of E-Water." I'm still guessing, but I think that confirms I'm right. The beverage company owns the Rush brand.

3. In a December, 2005 letter to stockholders, Mr Corr announced that he had authorized the issue of 4 billion shares of stock with the intention of effecting a private placement. Outside shareholders (us) currently own 1.3 billion, management owns .7 billion and he expects the final result to be that the private placement will own 1/3 of the company, management will own 1/3 and we will own 1/3.

That was interesting and I'm trying to digest exactly what that means at 11:30 pm on a Sunday night. However, without even thinking much, it does mean this: It appears that he plans to issue an additional 500 million shares to management ($3 million value at Friday's price) and an additional 1.3 billion shares to an investment bank (or group) in exchange for financing (probably $5 to $10 million dollars just guessing).

With 3.9 billion shares eventually outstanding, that means that in order to reach $1 per share, Rush would have to be worth $3.9 billion dollars. For a quick comparison, Hansen currently has 22.3 million shares outstanding with today's price of $113 per share for a total value of $2.5 billion dollars.

I hate to be a skeptic on the $1 share price, but Hansen had $415 million in sales last year and owns its brand name. Rush Net had revenues of $100 thousand last year and is merely an agent for the brand owner. As I mentioned above, it's a great investment, but there is a ceiling under its current structure and I suspect it is far below $1 per share...

[Soliel]

ItsJustMe...you know a lot more about this than I do. And, after reading the other forums, I see clearly that just hitting the pennies is HUGE...and I will be glad for that for now. After that, I'll watch my software for clues as to the direction it will go.

It just seemed to me that 1.00 a share would be reasonable...but what do I know?

Okay everyone...It's just Me answered my question...but no one else did. Do all of you feel that southendstockpickers is a legit site???

Soliel

[J-boy]

Well, they are featuring Blackout Media now, which I think is a great stock for anybody who has been accumulating it.
Wait and see if they are about to announce a deal for US coverage.
If so, I would say your website is alright.