A new section of this site will be dedicated to issuing pump & dump alerts to the public. Again, these alerts are only opinion, and should not suggest that we have confirmed the company as nothing more than a pump & dump scam. That being said, we feel it is important to bring to attention when there are areas of concerns which have been uncovered through our research methods.
Here are a few of the telltale signs of a pump and dump stock promotions;
- Company announces new management/name change/change of business.
- The company reports a huge number of outstanding shares.
- Several Penny Stock Newsletters begin promoting the stock via email/telephone/fax blasts.
- Penny Stock Newsletters Disclose a significant payment for their promotion efforts.
- Historical record of the Penny Stock Newsletters is consistent with short-term
- Companies shares Trade on the Pink Sheets and OTCBB.
- There is a lack of up to date filings for the company and their promotional.
- Company issues news releases which are highly promotional.
- Company issues news releases on a regular, if not daily bases to coincide with promotion.
- Sudden and dramatic increase in daily share volume.
- Sudden and dramatic increase in the price per share.
- Company directors and management have a history of being associated with previous promotional activity.
- Company reports no significant revenues or earnings.
- Sudden collapse the companies stock price.
- Daily share volume begins to decline rapidly as promotional activities cede.
While this is neither a comprehensive list of pump and dump activities nor a conclusive diagnostic tool, should a company report several of the points listed above it does warrant a significant concern to investors and is an investment in our opinion that needs to be avoided. The penny stock markets are already risky, there is no reason to look into the eyes of the beast. Since we spend a lot of time reading the various penny stock news letters, and follow a number of stock promoters, we come across a number of promotions which in our opinion should be avoided by investors. This is the reason that we have added a new opinion to our penny stock research reports called ‘Suspected Pump & Dump’, which is a special alert for investors.
We are still going to continue doing our research reports as before, and but we have added a new value to our opinion section of the report. Penny Stocks Research Reports will now recognize the following opinions;
- Speculative Buy
- Hold
- Sell
- FYI
- Suspected Pump & Dump
Each of these opinions
