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SEC suspends shady stock after it skyrockets 463%

The risks of trading penny stocks

NeuroMama has grand ambitions to become the search engine, social network and e-commerce platform of the future. The little-known company also wants to build 39 casinos in Mexico and a power plant that generates enough electricity and water to satisfy 10 million people.

NeuroMama's (NERO) stock has also raised eyebrows, soaring 463% in just the past eight months. NeuroMama now sports a market valuation of $35 billion, roughly the same as Tesla (TSLA), the electric car company transforming the auto business.

But here's the problem: NeuroMama hasn't reported actual financial results since 2013, and the U.S. government suspects its meteoric rise is being fueled by foul play.

This week, the Securities and Exchange Commission suspended trading in NeuroMama, which has the ticker symbol "NERO." The agency cited concerns about the "accuracy and adequacy of information in the marketplace" about who controls NeuroMama's operations and "potentially manipulative transactions in the company's stock."

Steven Schwartzbard, who is listed as NeuroMama's chairman, did not respond to requests for comment. Calls placed to the Baja Mexico office of NeuroMama went unanswered. The company...


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