The Raystream story has it all - a too good to be true product, excessive company sponsored paid promotional campaigns and ties to promoters of other companies that have been pumped before they were dumped. The stock has gone from $1.00 to $2.51 at its high since completing its “corporate restructuring” on October 4, 2011 and has already been exposed by two well-known research sites: The Street Sweeper (Dec. 1) and PumpsandDumps.com (Dec. 5). We also believe that TimothySykes.com views the RAYS story in negative light.
So now it seems that the jig is up for RAYS. Of no surprise, one of the company’s only three named “customers” (not clear whether or not they are paying) has already severed ties with them, as discussed later. It appears that the company’s large campaign to inform investors of a “proprietary” and “revolutionary” technology, claimed to have the ability to compress video like never seen before, has finally backfired on them. Investigations into the morality and intentions of their dealings, present and past, has uncovered disturbing truths and historical events shady enough to make even the most risk-tolerant investors run for the hills.
In a revealing commentary, The Street Sweeper released a column that discussed questionable business practices, delving into RAYS’ botched and weak attempt to fool what they obviously thought were naïve investors, presenting to them a product put together from free and open-source software and calling it their own. PumpsandDumps.com counted twelve stock promoting sites that were engaged in touting RAYS, but something tells us that this number is conservative.
The Street Sweeper’s article also covered a brief look into the intertwined cast of characters charged with molding the RAYS fraud into what it is today and the cast’s evident conflicts of interest in doing so. We decided to go a step further and uncovered eye-opening instances of recurring relationships tied to failed ventures and brazen pumps. (See page 17)
The fact that GeoInvesting was concurrently looking into RAYS speaks volumes to the extent of the “company’s” pump tactics. In fact, on October 21, 2011 we stated on one of our premium blog pages (Open Short Positions) that we were already short RAYS.
In the end, our own network of sleuths reached many of the same conclusions as The Street Sweeper. We decided to collaborate with a third party researcher and expand upon his excellent documentation and commentary which immediately caught our eyes.
From our experience, once the P&D stock’s chart pattern breaks, taking shares below $1.00, the end of the successful pump campaign is inevitable. We don’t know how long the stock will be pumped, but it appears to already be unraveling and we surmise it’s just a matter of time before some lonely investor(s) will be left holding the bag.
We believe that RAYS is worth no more than what it would claim as a shell company or at most about $0.004 to