Pump and Dump?

dazraf69 · #1 01-31-2007, 07:32 PM

Just out of curiousity, for the past year, between my school email and personal email, I have recieved about 1000 emails recommending a stock. I realize this is a scam and a pump and dump sceme, but anyone have some further information? FOr example do people actually fall for this ( I would have to say yes considering they are pretty persistant)? How do they get my email ( my school email is used only for career orientated purposes)? Do these comapnies exist ( I checked one out of curiousity and yahoo.finance could not find it)? Just a random thought........

MrBlue · #2 01-31-2007, 07:44 PM

A recent article on Slashdot:

The Anatomy of Pump n' Dump Stock Spamming

BradleyT · #3 01-31-2007, 08:43 PM

Back in the day (1997-2000) you could join certain groups through yahoo that were all about pump n dump. They would say, "OK on Monday at 10:00AM we're sending an e-mail of this weeks hot stock." So at 10:00 AM everyone gets the e-mail and volume goes up 10x more than normal so the stock starts showing up on all kinds of major financial sites as a hot-mover. Other people get suckered in thinking something is going to be announced and then everyone who bought at 10:00 AM starts dumping for a profit. I never actually bought any stock but I'd watch the tickers when I got the e-mails. Typical movements were from between 1% and 20% before it went flat again.

Not sure if any groups still do that at all or if was even legal.

Korch · #4 01-31-2007, 08:46 PM

this is definitely not legal.

dazraf69 · #5 01-31-2007, 09:39 PM

[ QUOTE ]
Not sure if any groups still do that at all or if was even legal.

[/ QUOTE ]

between my two email accounts, i get about 8 emails about a hot stock about to move. They are tricky too with different emails for each one and a eye catching subject

PairTheBoard · #6 01-31-2007, 10:49 PM

They prosecuted a young underage kid who made something like $400k doing this a few years back. There was a big story on it. Maybe 60 Minutes?

PairTheBoard

lala · #7 01-31-2007, 10:53 PM

[ QUOTE ]
They prosecuted a young underage kid who made something like $400k doing this a few years back. There was a big story on it. Maybe 60 Minutes?

PairTheBoard

[/ QUOTE ]

that kid makes a lot more now, still doing the same thing

pig4bill · #8 02-01-2007, 03:11 AM

Yep, he got a slap on the wrist and he and his parents laughed about it.

good2cu · #9 02-01-2007, 03:35 AM

[ QUOTE ]
Yep, he got a slap on the wrist and he and his parents laughed about it.

[/ QUOTE ]

We need this kid to come on 2p2. anyone have a name?

hawk59 · #10 02-01-2007, 10:24 AM

[ QUOTE ]
They prosecuted a young underage kid who made something like $400k doing this a few years back. There was a big story on it. Maybe 60 Minutes?

PairTheBoard

[/ QUOTE ]

i went to HS with this kid, he was a frosh when i was a senior, a huge wierdo, he got picked on a lot but then he got rich i guess. anyway, he paid the SEC around 600k and admitted no wrongdoing, nobody knows what he had left over but he bought a huge house and drove nice cars so he must have had at least a couple mil.