Sorry Warren Buffett, but now there’s a new stockpicker in town – rapper 50 Cent, aka Curtis Jackson, has just made $10 million in just two days, after he unveiled a new brand of headphones bearing his name last week.
The former drug dealer, whose debut album sold 10 million copies, used social micro network Twitter to tell his 3.8 million followers to buy stock in the marketing company – a business he partly owns.
H&H Imports has “one of the 15 products this year. If you get in technically I work for you. BIG MONEY,” he tweeted. He also added that the “stock went from 5cent to 10 in one day. You can double your money right now. Just get what you can afford.”
His Twitter follower evidently took his advice: 9.24m shares were traded in two days and the value increased tenfold. It was a huge boost for a company that in the three months to the end of September was operating at a loss with a $3.3 million deficit and only $198,000 cash.
50 Cent and his company G-Unit Brands bought his stock in the company H&H Imports, the parent of TV Goods, on November 30, a week after it offered buyers 180 million shares at 17 cents (11p) each, The Guardian reported.
Weeks later the rapper decided to plug the company on Twitter, causing its share value to rise from four cents to nearly 50 cents each, closing on Monday at 39 cents.
HNHI increased in value by about 200%. Even after it dropped more than 23% yesterday, Jackson was way ahead of the game.
50 cent’s attorneys presumably got a little worried, because the disclaimers started appearing late Monday: “HNHI is the right investment for me it might not be for u! Do ur homework,” “I own HNHI stocks thoughts on it are my opinion. Talk to your financial advisor,” he tweeted.
A spokesman for the Securities and Exchange Commission declined to comment, saying: “We never confirm or deny whether an investigation is ongoing.”
Being a financial adviser is not, of course, 50 Cent’s first gig. Long before he started out as a Billboard chart-topping rapper, he was a teenage crack dealer in New York. And since his first album went sextuple platinum he has moved constantly to new industries.
He started a record label, G-Note. He started a clothing line, G-Unit Clothing Company, which in 2003 partnered with Reebok. Then in 2005 he made his acting debut in a biopic of his childhood – called, unsurprisingly, “Get Rich or Die Tryin.”
He bought 10% of an energy drink company, Glaceau, producer of Vitaminwater and Smartwater. When Coca-Cola Inc. bought Glaceau for $4.1bn in cash in 2007, 50 Cent brought home more than $400 million.
Last week 50 Cent turned up in Dealbook, a financial blog from The New York Times, touting his social networking site, ThisIs50.com, and offering his thoughts on Facebook’s $50 billion valuation.
“So how does 50 Cent stack up against Goldman – morally, ethically, and legally? For one thing, Mr. Jackson is not a bank or investment manager and doesn’t claim any special financial expertise. Fitty doesn’t receive low-rate loans through the Fed’s discount window,” wrote Richard Eskow on Huffington Post yesterday.
He continued: “Neither he nor his company, G-Unit Records, received a Federal bailout. 50 Cent did not receive $13 billion in taxpayer money as a “backdoor bailout” through AIG. (Disclaimer: I used to work at AIG.) And 50 Cent has never paid himself a nickel, much less a huge bonus, after being rescued with Federal funds.”
Check the full article on Huffington Post to know more about “Which Is More ‘Gangsta,’ 50 Cent’s Twitter Stock Pitch or Goldman’s Facebook Deal?” [via The Telegraph (UK), the Guardian (UK) and Huffington Post]