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Beware Pump and Dump Schemes

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  • Beware Pump and Dump Schemes

    Every now and then someone decides to promote a penny stock through an email and/or internet forum campaign. I somehow ended up on the email list of one of these this week. These scams are knowns as "pump and dump" as those who run them buy a penny stock for pennies, pump them up through a media/marketing campaign, and then when the price rises, sell all their shares and leave you holding the bag for the inevitable fall. In case you've never seen one of these before, this is what it looks like:

    Obviously don't fall for this trick, but don't try to play with the pros at it either. The likelihood of you getting out before the dump is very low. Why don't we watch it on this thread and see what happens in real time, but bear in mind that even if this stock only goes to 2 cents, this schemer doubles his money!

    Helping those who wear the white coat get a fair shake on Wall Street since 2011

  • #2
    Just bought a million shares, you guys can all come and visit me when I  buy my island in the Caribbean.  8-)