Cloudweb Inc (OTCMKTS:CLOW) Looking For Bagholders

The Cloudweb Inc (OTCMKTS:CLOW) promotion looks to be over already. This is certainly a disappointment for the Elite Penny Stock Group as investors are just not buying into their pumps like they were before. Even a supposed recommendation from a "top notch" analyst named Paul Cohen could not get the stock going. Finest Penny Stocks said:

"A top notch analyst (Paul Cohen) who founded the west coast offices of Bear Sterns and American Express also believes that CLOW could explode. Mr. Cohen is so certain of it that he's given CLOW a price target of $1.07 and thinks that the company is bound for stardom. Mr. Cohen is one of the founders of the modern Wall Street as we know it today, and his seal of approval on CLOW is nearly a sure bet that the stock will pop to unprecedented new prices. I will be sending you an email this afternoon that includes his full report for your viewing and why he thinks that CLOW is about to go nuts."

This email smelled of desperation and no analyst report ever appeared. We highly doubt there exists such a person named Paul Cohen that would attach his name to such an obvious scam. Shares of CLOW finished down Thursday over 50%. This is a clear sign that buyers have disappeared and the pumpers need to get out while they can.The failure of CLOW is quite a fall for the Elite Penny Stock Group. For those that are not familiar with Elite, they are the most powerful newsletter group on the OTC markets. Their websites include finestpennystocks.com, smartstockchoices.com, smartstockwinners.com, BestAmericanStocks.com, and many others. What made Elite so powerful is that they have a massive database of names and followers. They even have other newsletters following their picks and then trying to pass off Elite picks as their own. Elite will blast their list several times a day trying to get as many buyers into their stocks as possible.Elite’s last two picks were AgriEuro Corp (OTCMKTS:EURI) and America Resources Exploration (OTCMKTS:AREN). Both started at pennies and then exploded. EURI ran as high as $2.09 and AREN hit $1.30. However, both came crashing down after Elite stopped promoting both names and they got hit with the dreaded skull and crossbones from OTC markets, which CLOW has been hit with already.What hurt CLOW the most was getting hit with the skull and crossbones from OTC Markets as soon as the pump started. Then this week after the SEC suspended trading of a few stocks, investors and traders got nervous that CLOW was next. For the SEC, there are RED flags with CLOW everywhere. For starters, the company's market cap was over $600 million at one time. This is quite a tall order for a company with minimal revenues or assets.Second, the two press releases were light on details and lacked any substance. They simply stated that Cloudweb was entering China and Australia. The most recent press release was this week's announcement that Cloudweb had acquired an Australian cloud hosting firm. It was all of 3 paragraphs and stated:

"Cloudweb, Inc. (OTC PINK: CLOW) today announced that it has executed a contract with ZangIT Hosting to acquire 100% of its assets in Australia which includes all current hosting infrastructure for shared hosting and cloud hosting solutions. Included in the sale is ZangIT's current customer base which include the Queensland Government Association, a large payment gateway provider, an art auction house and IT solutions providers. ZangIT hosting has an extensive investment in servers and other related IT equipment located in one of the largest data centers in Australia."

This doesn't inspire a lot of confidence in a firm with a market cap over a half a billion US dollars does it? It's only a matter of time before the SEC suspends trading of CLOW. Proceed with caution and don't be left holding the bag! We will be updating Insider Financial as soon as we know more. For continuing coverage on CLOW and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CLOW and have not been compensated for this article.