Pump and dump scams are investment scams in which a scammer acquires stock (usually of little known OTC stocks), then drums up demand (often via spam emails) and offloads their stocks at inflated prices. <\/p>\n
Steer clear of any stock promoted via spam: Their prices will collapse no later than when the spamming stops and people realize there are no other buyers. Such stocks can become near impossible to sell. In any case, a buyer will have lost most of their investment. <\/p>\n
One such stock currently being promoted is Pengram Gold Corp. (PNGM). The spamming started around March 9, 2013 and trading volumes went up in the next couple of days. <\/p>\n
Here is a spam sample:<\/p>\n
Pre Announcement! Major Momentum is Brewing for This Beast.<\/p>\n
Trade Date: Thu, Mar 14th, 2013
\nCompany: Pengram Gold Corporation
\nTrade: P NG_M
\nClosed Price: .027
\nLong Term Target: $0.20<\/p>\nIt Releases Breaking News! Our New Pick Under A Penny!!!<\/p><\/blockquote>\n
Right up to that day and from one week before, they had been spamming stocks of GOLD & GEM STONE MINING, INC (GGSM):<\/p>\n
Morning Dip spells Big Opportunity. It Should Continue Upward
\nTrend!<\/p>\nDate: March, 4
\nCompany Name: Gold and GemStone Mining, Inc
\nTick: GG SM
\nLatest Pricing: .017
\nShort Term Target Price: 0.35<\/p>\nYou Need To Read This Story. This week is going to be even
\nbetter than the last.\n<\/p><\/blockquote>\nFrom Feb 17-21 it was stock of Microelectronics Technology (MELY):<\/p>\n
This Stock Continues to Climb!!! We are on fire..<\/p>\n
Trading Date: Tue, February 19th
\nCompany: Microelectronics Technology
\nTicker: M_ELY
\nClosed at: $0.0163
\n9-Day Target: 0.10<\/p>\nIt continues soaring! Are you missing out? Building a strong
\nsupport for a push higher!<\/p><\/blockquote>\nIt only takes the scammers a couple of days to unload their existing stock, then they start promoting the next one.<\/p>\n
Occasionally the US Security and Exchange Commission (SEC) will suspend stocks<\/a> involved in such trading patterns, as it did in 2011, to protect potential buyers from being scammed.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pump and dump scams are investment scams in which a scammer acquires stock (usually of little known OTC stocks), then drums up demand (often via spam emails) and offloads their stocks at inflated prices. Steer clear of any stock promoted … Continue reading