Pump and Dump

Discussion in 'Stocks' started by MTRIG, Jun 7, 2009.

  1. MTRIG


    I started getting emails from a penny stock pusher, how I have no idea, I do not trade penny stocks. I am wondering if anyone else heard of this crap, it sure seems like a pump and dump.

    Here is how it typically goes...

    Monday Night: "Check your inbox on Tuesday morning for a special report. We have a stock that may go up 20% or more, other members.. bla bla bla..."

    Tuesday Morning: "Here is the stock we told you about..."

    Now the Tuesday Morning email comes in around 9:40. Yes, a little after the market opens. The company probably buys the penny stock at 9:30 am then sends out this spam.

    Here is the actual email from Friday 6/6 at 9:42AM. Look at the chart on Yahoo! you will it rallied then tanked. It did rally by the end of the day again, probably because other "traders" saw some huge bump in volume and thought something must be going on. I am interested to see on Monday if the bottom drops out.

    "As we mentioned last night, we are seeing what we hope to be another potentially profitable set up for an interesting stock. Many of you will remember this idea from a few weeks ago when we alerted you to it at .30 and then within a couple of days it was north of .60. That was an amazing triple-digit move. Those who played it right the first time around could have made a small fortune..." Symbol: NGHI


    Sure enough, from 9:41 to 10:00 the stock rallies then falls like a rock.

    I do not want to mention the company, I do not want to promote their scam and help them take money in this manner from other traders trying to buy along with this junk.
  2. bettles


    Nice. There is a variation of this that I like. Send 1 million people E-mail. Split them into 5 groups, and send a different prediction to each regarding what the stock market will do in the next month. At the end of the month, make 5 more different predictions. Split the 200 000 E-mail addresses for which the original prediction was correct into 5 groups. Continue this for several more months. At the end of 5 or 6 months, there will be a group of people who have seen you make predictions that are dead on 5 or 6 months in a row. Send an E-mail to these people, telling them to check your record based on previous E-mails, and offer them an exclusive newsletter for $1000 a month.

  3. It's a pump and dump. There are many out there (lebed.biz, hototc, penny stock chaser,...).
    I'ts a scam long term but you can try to scalp a couple pennies on the way up.
    Or you can short back down, see timothysykes.com for the short version. They've put HEB down on friday as an example.
    Just dont be stuborn and cut losses very fast.
  4. P&D of the OTCBB is no worse than the pump and dump in any other market. In fact, it might not be as bad. Plenty of money to be made with penny stocks and with no more risk than any other market. In fact, the risk now days is probably less less. More money has been lost investing/trading in the traditional markets that will ever be lost in the OTCBB. Savvy traders will agree. The rest of you dolts will spew the party line.
    Want to really see what a professional P&D market is...just turn on CNBC.
  5. Captain, I agree, wall street is a whole scan in itself.
    As for the pennies, it's easyer to get good risk reward ratios than in normal stocks. In stocks when I get above 3 I find it good but in pennies below 5 you dont even look at it.
  6. MTRIG


    CNBC pump and dump.... great comment. :)
  7. MTRIG


    Newsletters, and those spoke about by MarketWatch Hulbert or "Hulbert Interactive" is very lame" and maybe a little dumb.

    On Hulbert's site the first page (this was two years, yes I was looking at the database product) showed on the sample page all the top recommended stocks and they dates they were picked. Then running a chart showed after the newsletter writers promoted the stock within a couple of weeks they were down more than 10-15%. I thought how dumb, the first page of your web site to promote your product, the 10 stocks shown were all losers. People still buy his Hulbert Interactive report, and marketwatch they promote it.

    So, add MarketWatch to the CNBC list of pump and dump.
  8. bennie83


    This is a scam. A magician in England showed how it was done by sending millions of emails, and then separating winners from the losers. There will some people in the pyramid that may get 20 predictions correct in a row, but they don't realise they are part of a mathmatical formula.
  9. .
  10. This is pretty much how Tim Sykes made some of his money... He watched these stocks and then shorted.
    #10     Jun 7, 2009