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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

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