Green Innovations Ltd (OTC:GNIN) Issues Another Fluff PR

GNIN_chart.pngGreen Innovations Ltd (OTC:GNIN) has gone up more than 100% in about a month of active trading. The company has been spewing out fluff press releases and there are rumors it’s being pumped, but we haven’t been able to confirm them.

Yesterday, GNIN closed up another 15.38% at $1.65 per share on 2.8 million shares (a little over 10% of the supposed number of outstanding shares.)

Supposedly, GNIN operates through a wholly-owned subsidiary, Green Hygienics, Inc. Before the acquisition of Green Innovations Ltd in August 2012, GNIN was virtually a shell.

As of September 30, 2012 the company hadn’t generated a dime of revenue, including the newly acquired the subsidiary. Still, according to their latest press release, GNIN has now surpassed $500 thousand in sales and purchase orders.

Traders are free to make up their own minds whether there is any truth to that. In the process they may want to consider the fact that while GNIN has been issuing optimistic press releases, there isn’t a single filing for any of the distribution agreements the company claims it has signed.

While we haven’t been able to ascertain whether there is a pumper behind GNIN, the company shows all the signs of a typical pump scheme:

  • No, or limited, operations history
  • A forward split shortly before the start of active trading
  • A lot of fluff PR and very few filings

For those who don’t get it, the forward split before active trading gives more shares to insiders and seed shareholders who stay in the shadows holding shares they paid next to nothing for, and when the price is right, they can dump them in the open market.

ESYE_chart.gifIn the case of GNIN, the shell was run by a Mordechai David and a Shamir Benita. Not one, but both of them appear in an SB-2 filing of Easy Energy Inc (PINK:ESYE), a company which had its pump run in late 2008, then dropped and has been silent since November 2010. The two gentlemen are also mentioned in the S-1 for GNIN.

At this point, we can’t say who’s touting GNIN, other than the company itself, but traders should be careful. Especially those, who are considering GNIN as a long term investment idea.

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