job - staffingGeoInvesting regularly monitors third party stock promotion activity and has identified a stock pumper targeting General Employment Enterprises (JOB), a staffing service provider in the United States.  The campaigns are being undertaken by the usual suspects that promote penny stocks trading on the Pink Sheets and Over the Counter (OTC) Markets. However, once in a while, the pump consortium will set its eyes on a stock that trades on a major stock exchange (NYSE-AMEX, NASDAQ).

Stock Pumper Elijah Brockman Fronts Pump Campaign on JOB

Over the past several months GeoInvesting has received a flurry of OTC penny stock promotional emails from stock pumper Elijah Brockman of the SMS Penny Picks newsletter, and in true tandem with the idea of promoting larger companies the outfit is now focusing on General Employment Enterprises, which trades on the NYSE.

JOB’s annual revenues were running at about $70 million in 2005. Since then, annual sales have been stuck in the $25 to $30 million range and the company has reported consistent losses. JOB’s inability to deliver strong financial results is probably what caused shares to touch $0.12 in the past year. However, shares have accrued value since mid December when the company announced:

  • what appears to be a high profile individual to assume the position of CEO to put JOB back on a path of growth; and
  • that it has entered into an agreement to acquire Scribe Solutions, a company that will give JOB exposure to the medical staffing industry.

“Scribe Solutions offers emergency department medical scribes to allow the ER physician to spend less time on clerical duties and more time caring for patients. Our clinical information managers (scribes) provide specific emergency department services to aid doctors in documentation and minimize their clerical duties.”

The promotional newsletter actually mentions this acquisition as part of its bullish thesis. What the newsletter fails to mention is that the acquisition of Scribe (expected to close by March 31, 2015) will be financed through the issuance of recently preferred stock which will help increase JOB’s fully diluted share count by more than 70% to over 50 million.

GeoInvesting plans to take a closer look at JOB to determine who was paying for the current pump campaign and if a legitimate story exists beyond it.


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