NEW YORK (CelebrityAccess MediaWire) — Rapper 50 Cent (briefly) made a killing in the stock market this weekend after he made a Twitter post advocating that his followers snap up a OTC (penny) stock for H&H Imports, a company which 50 owns 7.5 million shares and warrants for 22.5 million shares.
"HNHI is the stock symbol for TVG there launching 15 different products. they are no joke get in now," the Rapper tweeted.
The sudden surge in hype about the stock briefly gave the rapper a profit (on paper) of $5.2 million, but he gave 2.9 million of that back after the initial hype about the stock wore off.
Unfortunately, for the rapper, his Twitter strategy sounds akin to an updated version of the 'pump and dump' scam, in which an investor buys into a large position on a penny stock and then hypes the company on investor bulletin boards to drum up sales and increase share price (the pump). The scammer then sells his stake at the peak of the hype, typically leading to a downturn and leaving other investors holding the bag (the dump.)
Subsequent tweets by the rapper suggest that he or his legal counsel may have realized his faux pas and he later offered some additional cautionary advice.
"I own HNHI stock thoughts on it are my opinion. Talk to financial advisor about it," he tweeted, shortly after deleting the stock-related tweets. "HNHI is the right investment for me it may or may not be right for u! Do ur homework."
If Fifty actually violated any SEC regulations is unclear. Among the list of common violations that might lead to an SEC investigation is "manipulating the market prices of securities," but at present, the SEC has said that they cannot confirm if or when an investigation might take place.
H&H Imports is a Plantation, Florida-based company that sells headphones by artists including 50 Cent, Dr. Dre, Lady Gaga and Justin Bieber. 50 Cent made an equity investment in H&H's parent, TV Goods and the company said in a press release that they intend to offer him a seat on their board. – CelebrityAccess Staff Writers
