Endeavor IP Inc (OTCBB:ENIP)’s Promotional Budget Grows

If you are a regular visitor of our website, you know that Endeavor IP Inc (OTCBB:ENIP) was promoted back in October. A video was put together, an article was published on an advertorial called Financier Times and, shortly after, 900 Percent Stocks started sending in their alerts through the email.

At first, things were looking good. The pump started when ENIP was hovering around the $0.75 per share mark and over the course of a couple of weeks it managed to break through the $1 barrier. A 52-week high of $1.25 was reached on November 11 and back then a drop seemed all but inevitable. Sure enough, despite a few more emails from 900 Percent Stocks, the ticker started sliding and after a few heavy blows, it plummeted below $0.50 per share on December 11.

That wasn’t too much of a surprise for the people who have been around penny stock promotions for long enough, but it was quite a shock for the more inexperienced investors. Even we, however, were startled by the pumpers’ behavior.

Normally, after such a horrific performance, they would move on to their next pick, some would even apologize or blame short sellers for the crash. 900 Percent Stocks, however, took an altogether different approach. They decided to resurrect the pump and renewed their efforts with an email alert on December 17.

Needless to say, they weren’t too keen on talking about ENIP‘s atrocious performance from the last month or so. They also failed to mention the fact that the company itself has been pretty quiet since their latest press release which came out more than a month ago. The SEC’s recent effort to crack down on penny stock pumps was conveniently left out as well.

Instead of bringing you any new information, 900 Percent Stocks simply said that ENIP could explode over Christmas because of a large-scale investor relations campaign. A link to this landing page was included and as soon as you open it, you’ll see that it’s not an “investor relations campaign“, but a promotional campaign (a second one in just over two months).

As you might imagine, the landing page talks about the mountains of cash that can be made from the patent monetization industry, about the huge potential that can be found in ENIP‘s shares and the whole thing is garnished with numerous examples of how small cap companies became huge enterprises after they won some infringement lawsuits against the big boys.

The expose was written by a person called Jonathan Kolber and in case you’re wondering who he is, we should probably point out that back in March, he said that Cloud Security Corp (OTCMKTS:CLDS) could reach $3 per share by the end of 2013. As you can see from the chart on the right, his predictions turned out to be a bit off the mark.

On the whole, the optimism spurring out of the colorful website isn’t really that much of a surprise, but something interesting can be found in the fine print at the bottom of the page. It says that, as of December 12, Absolute Media Services (the entity in charge of the pump) has received $450 thousand for the campaign but it also says that it “expects it could manage a total production budget of up to $4,000,000“. If this figure turns into a reality, ENIP will become the most expensive pump on the OTC markets and, consequently, one of the most dangerous. Treading extremely carefully and timing every single move is absolutely crucial.

Speaking of promoted stocks, Guar Global Ltd (OTCMKTS:GGBL) came out of suspension a couple of days ago. Currently it’s sitting around 87% below the levels held before the SEC decided to intervene. Keeping GGBL‘s chart in mind while making your decision on ENIP might also be a good call.