The Effectiveness Of Social Websites

Who says you can't generate profits on twitter Rapper 50 Cent recently raked in millions.

The rapper had a lot to express over the weekend about a penny stock named H&H Imports (HNHI), a small operation out of Florida. Why? Simply because 50 Cent put in $750,000 in stocks and shares and warrants in the company last fall. A few of these shares could be cashed out only as the stock goes up to 15 cents, 25 cents and, yes, 50 cents.

What better way to pump up the stock rather than publicize it to your 3.8 million Twitter visitors? It is exactly what the rapper did - and the stock went up by 240 per cent to close at 39 cents Monday.

Presently, however, stocks are down nearly 12 per cent to 34 cents.

"You can double your money right now,"50 Cent tweeted. "Just get what you can afford." He sent out a number of messages - some of which have since been removed - that said things such as "They aren't any joke get in now."

It took a couple of days for the fact to set in, and 50 Cent (whose real name is Curtis Jackson) began backing off of his cheerleading Monday, The New York Observer states. He started sending more cautious messages to his readers, stating things such as "I possess HNHI stock ideas on it are my opinion. Talk to a financial advisor regarding it."

Jackson also told his readers to do their research, stating that "HNHI is the perfect investment for me personally it might not be right for u!"

The New York Post crunched the numbers and figured that, depending on H&H's close at 39 cents Monday, Jackson's stake of 30 million shares gained in value by $8.7 million. The entire company's value raised by approximately $50 million.

H&H is an incredibly sketchy investment decision and even got the dreadful "going concern" notice last March as its auditor shared doubts about the company's future. The company reported less than $300,000 in income last quarter but lost $1.3 million, the Post reports.

There are some funny loans at the company also, the Observer notices. H&H loaned $141,000 to what it explains as "an entity where our chairman's brother is an officer and owner."

The chief executive of H&H made two loans to the company this past year total ling approximately $215,000.

Exactly what does H&H do? Bloomberg states it purchases and markets women's handbags. Other reports say the company offers sunglasses and distributes headsets.

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