Stock Pump and Dump example
January 3, 2007
Normally I just delete the spam emails for pump and dump scams but I’d read somewhere that they are working for the spammers so I thoughts I’d investigate one a bit further.
The email in question was for “Symbol: PHYA” and arrived 19/12/2006 with the following prices
Current Price: $2.25 (+18%)
Short-Term Projected Price: $4.25
Long-Term Target Price: $10.20
The graph showing the effect of this email is below (from http://finance.yahoo.com))
I guess I was lower down on the spam mailing list as by the time it got to me the increase had already happened. The increase is from about 1.6 to 2.2 giving a rise of 37.5% – not a bad return for the spammers for a couple of days work.
In my opinion the people who fell for this got exactly what they deserved, that’s what greed gets you.