the "stock tips" I keep getting in my e-mails - Page 2

iversonian · #11 10-08-2006, 09:28 PM

If you believe this, why don't you sell what they tell you to buy?

inside?? · #12 10-09-2006, 12:27 AM

Google "pump and dump" but I would suggest not using the image search.

Slowroller13 · #13 10-09-2006, 01:48 AM

It's no different from what stock "analysts" did during the tech stock heydays. Release "good" news (true or not, usually not), get an investor (read: mark) to buy the stock, and then unload said stock on their collective asses. Also known as a "pump and dump". Very common and yet still surprisingly effective.

As PT Barnum once said: "There's a sucker born every minute."

crubfrush · #14 10-09-2006, 02:25 AM

I remember following one of the stocks and it was fun seeing it all unfold. Stock was ~$.50 and had almost no volume. Email arrives in my inbox (and probably millions of others). Volume goes up like 50 fold and stock spikes. Next day, stock plummets and CEO issues a statement about the email pump and dump scheme the he claimed to know nothing about. Good times.

neuroman · #15 10-09-2006, 02:38 AM

[ QUOTE ]
Google "pump and dump" but I would suggest not using the image search.

[/ QUOTE ]
after reading this I had to GIS it just to see. Results were pretty tame, highlights included:

http://www.cgstock.com/pics/5208.jpg
http://www.charous.com/uploads/3184fee412.jpg
http://img149.imageshack.us/img149/5...smaller1vf.jpg
(all SFW)

ski · #16 10-09-2006, 06:22 PM

so if these stocks are pretty much guarenteed to go up (because of pump and dump) why not buy them then just be sure to sell them before the scammers sell all their shares?

Unless Degen is correct. Then that is a pretty elaborate scam.

JasonK · #17 10-09-2006, 06:30 PM

[ QUOTE ]
so if these stocks are pretty much guarenteed to go up (because of pump and dump) why not buy them then just be sure to sell them before the scammers sell all their shares?

Unless Degen is correct. Then that is a pretty elaborate scam.

[/ QUOTE ]

How are you going to know when the pumping is done and the dumping begins? Good luck with your investing future.

Pokeraddict · #18 10-09-2006, 07:19 PM

[ QUOTE ]
so if these stocks are pretty much guarenteed to go up (because of pump and dump) why not buy them then just be sure to sell them before the scammers sell all their shares?

Unless Degen is correct. Then that is a pretty elaborate scam.

[/ QUOTE ]

A better bet would be to buy it after it has been pumped and dumped. In other words wait until it has been extremely oversold by the scammers and the scammees and then buy it.

poorolrich · #19 10-09-2006, 07:26 PM

It did reach their expectations, just not the advertised expectations. They buy big chunks of cheap stock, then send out a buy notice notice and when the gets to THEIR expectations they sell, the stock tanks and you--they don't care. If you know what you are doing you can make some money at this but you better be good and FAST in dumping the stock.

iversonian · #20 10-09-2006, 07:26 PM

[ QUOTE ]
It's no different from what stock "analysts" did during the tech stock heydays. Release "good" news (true or not, usually not), get an investor (read: mark) to buy the stock, and then unload said stock on their collective asses. Also known as a "pump and dump". Very common and yet still surprisingly effective.

As PT Barnum once said: "There's a sucker born every minute."

[/ QUOTE ]

They didn't pump the stocks so that their prop desk would make money taking the opposite position. Equity research pumped the stocks so that their clients (the companies whose stocks they were pumping) and prospective clients would give them more business on the investment banking side.