Stanley Persch aka Stan The Trading Man is a penny stock investor with an iconic following on Twitter. Stan’s profile has really improved since the pandemic started. Thousands of bored and unemployed Americans are now chasing the wealth of the stock markets by gambling on penny stocks. Stan has benefited from the rise of the investment craze, some of whom have discovered his “high quality” DD.
Stan has been referred to on Reddit as a “pumper” – someone who builds a position in one company and promotes that stock heavily to others. Typically, the companies advertised are more hype than substance, but tied to a catalyst.
Genius Brands (GNUS) is a prime example. They are a children’s media company that creates and licenses entertainment content. Despite being the catalyst for short-term growth, management has consistently failed to turn the hype into tangible value for shareholders. Genius Brands faces declining revenues and increasing expenses and will do well in the future to avoid bankruptcy.
The Washington-based dealer has built a reputation for finding large moving companies early on. Examples are GNUS, IDEX and XSPA. The whole thing has become a self-fulfilling prophecy. Traders who buy alerts because the previous picks were great runners. Those who took the risk and invested early were most likely to make lucrative profits. The poor souls who bought late or held stocks long term became pocket owners.
Stanley’s fame on Twitter has not gone unnoticed by the financial media. He has appeared in various news articles and on Fox Business alongside Sharmila Viswasam. The couple were interviewed by Charles Payne on their travels to become successful day traders. Funnily enough, Charles Payne has touted penny stocks for Fox in the past, somehow he didn’t get fired.
Poor Stan got into trouble with some women traders in August 2020 due to inappropriate news. The tweets went viral on social media and immediately. The whole penny stock community followed him, calling him a “horror” for his actions. Mrs. Viswasam seemed to be one of the few people who stood up for him in difficult times.
Stan later apologized, deleted his Twitter account, and took a break from trading. Loyal Followers Failed, Who Would They Follow Now for New Penny Stock Picks? Fortunately, stocks like Stock Lizard King, Buy Sell Short, Yates Investing, and Huge Henne filled the void he’d left in his absence.
Return from the break
Stan returned to Twitter in November 2020 and is now back in full swing. He sends more than 10 tweets a day. Now it seems Stanley is paying more attention to cheaper stocks, below 10 cents in some cases.
HQ Global Education Inc (OTCMKTS: HQGE), a recent warning, traded for less than a dime in early February 2021 and is currently trading at 3 cents per share on strong volume. These triple zero penny stocks are insanely risky; they’re not long term investments. I wouldn’t hold stocks overnight. Only act if you can afford to lose all of the money you invest.
If I were Stanley I would be more careful about how he promotes companies. I believe it is a matter of time before the SEC steps in and prosecutes traders for pumping OTCs. The Financial Times takes note of the OTC market and selects two traders – Alexander Delarge and Canadian Jennifer for their roles in pumping SpectraScience, a company that has not filed financial results since 2017!
Though Stan has a lot of haters (including Tim Sykes), I have nothing against the guy. He has drawn a lot of new attention to the OTC markets, most of which shouldn’t be near the financial markets. While it is possible to make money off of Stan’s pieces, I advise you to thread carefully. Don’t get caught holding the bag.