Archive for the Category Scams

 
 

Stock-Scam Crackdown: Too Little, Too Late?

The Securities and Exchange Commission is quick to claim credit for a decline in stock spam, but pump-and-dump schemes still thrive.

From Kiplinger.com:

Let’s give the Securities and Exchange Commission some credit. The SEC’s moves to suspend trading of stocks that have been the targets of spam campaigns appear to have put a dent in the number of junk e-mails that tout worthless companies.

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Guangzhou Global Telecom: Mountain of Hype, Small Anthill

Full-page ads promoting this small retailer’s shares are running in major business magazines. Investors beware.

From Kiplinger.com:

Guangzhou Global Telecom has made a big splash in its brief life as a U.S.-traded stock. Shares of the small Chinese retailer started trading here on May 15 with an opening share price of $1.75. In little more than two weeks, Guangzhou soared 51% to close at $2.65 on May 31. Is it the latest hot company from China? Or is its rapid rise just due to hot air? While you decide, we suggest you hold on to your wallet.

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The Truth Behind Penny Stock Spam

A deluge of e-mail come-ons puts gullible investors at risk while the government does little to stop it.

From Kiplinger’s Personal Finance:

Promoters of penny stocks typically pitch these high-risk investments as if they were valuable real estate, like oceanfront property. With little money down, you can make a quick-and-easy profit. But in reality, penny stocks are more like swampland. And now, thanks to spam, the muck is spreading at an alarming rate, and efforts to stop it have so far been as effective as ordering the tide not to come in.

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