Sunday, January 16, 2011

'50 Cents' Very Short and Sorry Career as A Stock Promoter

Last weekend, Curtis Jackson, a.k.a. 50 Cent, tweeted out to his 3.8 million followers a recommendation to buy a penny stock called H&H Imports.

The company is producing Sleek By 50 headphones that are endorsed by 50 Cent. He reportedly initially invested $75,000 in the company for 30 million shares (including warrants). Sounds like a fun and games gig for 50 Cent.

A $75,000 investment is chump change for this guy.What usually goes down in situations like this is that someone with a lot more savvy than "businessman" 50 Cent got a hold of 50 Cent's ear and explained to him how he can add to his piles of cash real fast.

They get him the 30 million shares, he pumps the stock tip out to his following and viola the stock skyrockets.

50 Cent  came through on his part of the deal. He tweeted away, last weekend:

HNHI is the stock symbol for TVG sleek by50 is one of the 15 products this year. If you get in technically I work for you. BIG MONEY
He then thumbed:

You can double your money right now. Just get what you can afford.
They are no joke get in now
On Monday the stock soared by 290% to 39 cents, up from a dime.

So what's the deal with this company? As of September 2010, the company had net working capital of $473,644. Not exactly the type of company that has George Soros looking to see if he can get in on the action. It's as risky of a stock as you can get. A ten thousand to one shot (and I am being kind).

This stock is likely to go nowhere but down. Among those that probably took 50 Cents advice are his hardcore followers, not a bright move on 50 Cents part, since they are the ones that will be taking the big it as the stock goes down, back south of a dime.

There's talk that investigators are looking into this deal, but why?  50 Cent didn't do anything wrong, in the sense that he was probably hyped about the company, and it is doubtful he wanted to burn his hardcore followers. It may sound harsh, but the way this went down, 50 Cent and those that bought the stock have learned a lesson, when it comes to the stock market, you have to do your own homework and know what you are doing. There is no one that is going to save you from a bad investment, although, the SEC may make noises after the fact.

Bottom line: When the novelist Ayn Rand was being pushed by Alan Greenspan to get into stocks she didn't know anything about, she refused to do so because she knew that it was her responsibility to study the companies, those associated with the companies etc., and she knew she didn't have the time to do so. 

That's the only attitude you should take about the stock market whether it is advice from 50 Cent or Alan Greenspan. Know what you are investing in, or don't invest. As for the SEC, they may be on the scene, way after the losses have already occurred, possibly harassing an innocent dupe in 50 Cent, for their own propaganda purposes, but the money invested is long gone.


  1. that is a great advice, increase our common sence by 290%

    papua new guinea

  2. Thanks, Bob! The tidbit about Greenspan pushing Rand to buy stocks is great!

    ~Deb T.