Pump & Dump
Over the last few months I've been receiving promos from "newletter publishers" hawking actual named stocks--as opposed to the traditional subscriber acqusition tactic of teasing with an unnamed stock.
And that's got me baffled.
At first glance, it would seem a classic pump and dump tactic--either buying the stock or subscribing to the newsletter where you get these "picks" on a regular basis.
But that just seems too easy and obvious.
Is there something going on here either more sinister or benevolent and beneficial--that I'm just not seeing?
And now added to this, I was just approached by an "independent" research company that wants me to write these promos for them.
Now they say in their written material that they are paid a fee by the companies they cover--yet they claim they are independent--huh?
And that it's not pump and dumb--because they're clients are not traders, but the actual companies who want their stocks to get exposure and rise in price.
Publicity is one thing, but what advantage acrues to a company, just by seeing their stock price rise, unless they need to show that for creative financial business transactions -or to mollify majority stockholders.
Yet, these are penny stocks--so the principals of the company are the 10%+ benficial stockholders.
So... can anyone with knowledge, not speculation, bring me out of the dark on this issue.
Thanks,
--Barry
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