This is the first time I have ever heard of some tweets substantially increasing the stock price of a penny stock. Rapper and investor 50 Cent sent out the following tweets:
1. “[H&H Imports] Stock went from 5 cent to 10 in one day. You can double your money right now. Just get what you can afford.”
2. “[H?&?H Imports has]?15 products this year. If you get in technically I work for you. BIG MONEY.”
The tweets were sent out to 50 Cent’s 3.8 million followers and have been deleted since. The impact was already done though. There was a 290% increase in the stock price, which is the equivalent of an $8.7 million increase in market value.
H & H Imports, Inc. (OTC:HNHI) owns TV Goods, a marketing company that was founded by Kevin Harrington. Harrington is known as being one of the “sharks,” or investors, on the the ABC TV show Shark Tank. 50 Cent had received 30 million shares of H&H in private placement this past October. This includes a series of warrants that grants him the opportunity to cash out once the stock prices. That seems to be enough of a motivation to send out tweets about the company stock.
Unfortunately H&H is having some cash-flow problems though. The company lost $1.3 million last quarter with revenues of only $292,933. To prevent a backlash about disclosing information, 50 Cent later disclosed that he owns shares in HNHI on Twitter: “I own HNHI stock thoughts on it are my opinion. Talk to financial advisor about it.”