Yesterday a blogger put out some scathing articles on SeekingAlpha about the management of Legend Oil and Gas - LOGL.  This stock was on our short list as it has been involved in a paid promotion campaign, which seemed to artificially inflate the price.  We were short some shares (not many, as it has been very hard to borrow) and covered with a small gain.  Today it is dropping down 65% to 62 cents a share as I write this.   Yikes!
Disclosure: We currently have no position.

There is a recent promotion which tells of an "amazing opportunity" in the oil and gas business.  The promotion tells you to "buy this stock now in the $2 to $3 range and make $36,000 off only 2000 shares.  A ten bagger for sure!!!"  The email and mailer brochure tells how this unknown oil and gas player is sticking it to the big players because they were able to pick up huge reserves for nothing.  It mentions the hot buzzword "bakken" about a hundred times (because that is the hottest phrase in oil and gas at present).  Then when you get to the disclaimer of this glowing report it tells you that a third party is paying $125,000 for the promotion.  The stock being promoted is LOGL - Legend oil and gas.  The stock has started perking up again on heavy volume since this new promote started about 2 weeks ago.  As it loses steam, the stock will more than likely dump (I have never seen a paid promote succeed long term).  I am starting a short position in LOGL.  I expect this promote will end exactly the same as the 1000's of others over the years...
BTW - if you want a real junior explorer that is teaming up with Brigham Exploration in the Bakken, look at my favorite ESTE Earthstone Energy.  Their last well, which they have a 4% stake, just hit for 3,900 barrels a day initial production.
Disclosure: Long ESTE - Short LOGL

While I like shorting the overinflated promotion stocks - usually otcbb and pink - this week you could have pretty much shot the fish in the barrel.  I was short LOGL - Legend oil and gas -  and covered for a small gain.  I will be looking for shares of VXX if it stays in the 30 plus range.  VXX decays badly and the Vix does not stay high forever.  It could be an interesting week since the US has been downgraded.