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Pump and dump
"Pump
and dump" schemes, also known as "hype and dump
manipulation," involve the touting of a company's
stock (typically microcap companies) through false
and misleading statements to the marketplace.
After pumping the stock, fraudsters make huge
profits by selling their cheap stock into the
market. Pump and dump schemes often occur on
the Internet where it is common to see messages
posted that urge readers to buy a stock quickly
or to sell before the price goes down, or
a telemarketer will call using the same sort of
pitch. Often the promoters will claim to have
"inside" information about an impending development
or to use an "infallible" combination of economic
and stock market data to pick stocks. In reality,
they may be company insiders or paid promoters
who stand to gain by selling their shares after
the stock price is "pumped" up by the buying frenzy
they create. Once these fraudsters "dump" their
shares and stop hyping the stock, the price typically
falls, and investors lose their money. For more
information about microcap fraud, please read
the publication, Microcap
Stock: A Guide for Investors.
- U.S. Securities and Exchange Commission
Let's
see how we would have done if we had bought the
stocks...
| Date
of Spam |
Email
contents |
Price
at time of spam |
Price
as of today's date - link to current chart |
| March
14, 2005 |
|
0.17 |
Delisted
|
| March
16, 2005 |
|
0.45 |
|
| April
4, 2005 |
|
0.13 |
Delisted |
| April
5, 2005 |
|
2.80 |
Delisted |
| April
20, 2005 |
|
0.34 |
Delisted |
| April
29, 2005 |
|
0.17 |
Delisted |
| May
26, 2005 |
|
.035 |
Delisted |
| June,
2005 |
SRPI:PK
Symbol changed to: TRVO.PK.
|
.023 |
|
| Sept.
1, 2005 |
|
3.00 |
|
| Sept.
2, 2005 |
|
0.01 |
Delisted |
| Sept.
5, 2005 |
|
0.60 |
See
next |
| Sept.
8, 2005 |
|
0.72 |
|
| Oct.
7, 2005 |
|
1.07 |
Delisted |
| Jan.
19, 2006 |
|
0.35 |
Delisted |
| Jan.
19, 2006 |
|
1.57 |
|
| Jan.
20, 2006 |
|
1.50 |
|
| Jan.
22, 2006 |
|
1.85 |
|
| Jan.
23, 2006 |
|
0.93 |
|
| Jan.
23, 2006 |
CBIO
Symbol changed to: CSBF |
0.20 |
|
|
Jan.
23, 2006 |
|
0.174
|
|
| Jan.
26, 2006 |
|
0.16 |
|
| Jan.
27, 2006 |
|
0.166 |
|
| Jan.
29, 2006 |
|
? |
|
| Jan.
30, 2006 |
|
2.60 |
|
| Jan.
30, 2006 |
|
0.17
|
|
| Jan.
30, 2006 |
|
0.50 |
|
| Jan.
31, 2006 |
|
0.10 |
|
| Mar.
17, 2006 |
|
1.16 |
|
| Sept.
7, 2006 |
|
0.90 |
|
| Sept. 20, 2006 |
|
2.75 |
|
Disclaimer:
We only research the validity of the email (spam)
we receive. We have no opinion on the quality
of the company involved. In all probability the
company is not aware of the spam. Our purpose
is to show that investing money based on email
hype is a very foolish thing to do. Nothing compares
to a proper education in investing techniques.
Do not rely on others to tell you how, what or
when to buy. But...the ultimate decision (and
money) is yours.
If you
have a "hot pick" you'd like us to research let
us know.
Alex /
Gary
Chartfilter.com
Check
out the Charting Martha feature on http://www.chartfilter.com
|