Consumer Alert: Pumped Stocks Will Eventually Collapse
Most likely, it's a low-cap stock, probably one on the bulletin board listings, offering some unrecognized investment potential... and lucky you now know about it and can count on taking advantage of an investment opportunity that the big boys have overlooked.
Keep dreaming!
There's a whole industry that calls itself the investor relations industry. Because the purpose of this industry is to put a positive spin on the prospects of their client companies, we just call it the stock pumping industry.
If this positive material came directly from the company, the bias might be better understood, but when it comes from a seemingly unrelated third party, naive investors give it greater weight.
What makes this legal is the often inconspicuous disclosure that they're getting paid to do this. In any case, many investors think that when a company uses a stock pumping service, it's a strong sign that the company has become desperate.
Since not everybody is sophisticated enough to realize that these reports are biased, enough people buy the stock so that the price goes up in the short term, allowing the stock pumping industry to show how successful their recommendations are.
But pumping a stock can only work in the short term. Eventually, the stock price must come back down to reflect economic reality. It's difficult for the individual investor to know how much higher they're going to pump the stock. The end result is that there's a high probability of a big loss if you take the bait of the stock pumping industry.
Here are some recently pumped stocks:
| date | symbol | company | pumping firm |
|---|---|---|---|
| 2/3/2004 | CRGQ EMRG LIT.V |
Circle Group Holdings eMerge Interactive Little Mountain Resources |
Street Insider ($13,500+?/$5,000/$4,000) |
| 10/20/2003 | HPLF | Hepalife Technologies Inc. | Stock Upticks ($15,000) |
| 10/13/2003 | HTDS | Hard to Treat Diseases | Market Newscast |
| 10/3/2003 | CRTI | Ceristar | Stocktalkers (13,250 shares) |
| 8/6/2003 | FRTE | Fortis Enterprises | Money Tree International ($50,000) |
| 7/6/2003 | UGHO | Universal Guardian Holdings | Microcap Markets ($?) |
| 6/10/2003 | CECC | CEC Industries | OTC Stock Alert ($10,000) |
| 3/23/2003 | IBGX | IBGX Group | Investor Insights ($15,000 + 2,000,000 warrants) |
| 3/8/2003 | BOCX | Biocurex Inc. | Investor Insights (300,000 shares + 300,000 options) |
| 2/19/2003 | VLDE | Valdé Connections | Money Tree International ($50,000) |
| 10/9/2002 | ENPO | EntrePort Corporation | Investor Insights (750,000 shares) |
| 9/29/2002 | GLEE | GL Energy & Exploration | Summit Stock Picks ($200,000) |
| 9/21/2002 | TBXR | TBX Resources | OTC Stock Watch ($40,000) |
| 9/8/2002 | JLWT | Jamel World Trade | Bullseye Stock Profiles (500,000 shares) |
| 8/30/2002 | GKIG | Microcap Markets ($8000) | |
| 8/17/2002 | CBYI | OTC Newsletter ($27000) | |
| 8/8/2002 | IBXG | Emerging Equity Alert ($2000) | |
| 8/7/2002 | RMDC | Special Situations Alert (110,000 shares) | |
| 7/24/2002 | VEII | American Power Stocks ($50,000) | |
| 7/23/2002 | SCAL | Stockwatch Alert (250,000 shares) | |
| 7/23/2002 | WTMK | Global Media & Corporate Relations (45,000 shares) | |
| 7/18/2002 | TTGG | T & G 2 | Market Advisors Inc. (100,000 shares) |
| 7/17/2002 | AKLM | Acclaim Entertainment | Bullseye Stock Profiles (?) |
| 6/22/2002 | ETLK | Elephant Talk Communications | Madison Wall & LaSalle ($20,000 + 100,000 shares) |
| 6/19/2002 | IVIP | Internet VIP, Inc. | Wall Street Stocks (176,000 shares) |
| 6/13/2002 | AEYS | American Energy Services, Inc. | Strategic Stock Intelligence ($75,000) |
| 6/12/2002 | AEYS | American Energy Services, Inc. | Strategic Stock Intelligence ($75,000) |
| 6/12/2002 | XCNT | Xenicent Inc. | Wall Street Alerts (50,000 shares) |
| 5/29/2002 | BBJE | BBJ Environmental Tech, Inc. | Market News Alert (250,000 shares) |
| 5/28/2002 | NCGH | NetCare Health Group, Inc. | Investors News Daily ($50,000) |
| 5/21/2002 | HLBR | Healthbridge, Inc. | Tip Release ($7500 + 30,000 shares) |
| 5/21/2002 | ASEQ | Asset Equity Group | Emerging Equity Alert (28,000,000 shares) |
| 5/21/2002 | AEYS | American Energy Services, Inc. | Investment Profiler ($1400) |
| 5/21/2002 | TSX:BU | Burcon NutraScience Corporation | Rock Capital ($1000 Cdn.) |
| 5/21/2002 | GTWY | Gateway Distributors | Stock Alert (100,000 shares) |
| 5/8/2002 | WLIV | Whole Living, Inc. | Investor Insights (150,000 shares) |
| 5/7/2002 | THCR | THC Communications | Market News Alert ($100,000) |
| 5/6/2002 | IDIB | IDI Global, Inc. | Investor Insights (50,000 shares) |
| 4/25/2002 | ASEQE | Asset Equity Group | Emerging Equity Alert (28,000,000 shares) |
| 4/18/2002 | NMMG | New Millenium Media | Wall Street Daily (11,000 shares) |
| 4/17/2002 | CWTI | Clean Water Technologies, Inc. | Network Media Services ($10,000) |
| 4/17/2002 | WSCH | Wasatch Pharmaceuticals | Emerging Growth Stock Alert (10,000,000 shares) |
| 4/17/2002 | IDIB | IDI Global, Inc. | Investor Insights (50,000 shares) |
| 4/17/2002 | ASEQ | Asset Equity Group | Emerging Equity Alert (10,000,000 shares) |
| 4/11/2002 | ERHC | Environmental Remediation Holding Corp. | Special Situation Alerts ($10,000) |
| 4/9/2002 | WSCH | Wasatch Pharmaceuticals | Emerging Equity Alert |
| 4/9/2002 | PRVB | Powder River Basin Gas Corp. | Special Situations Alert ($10,000) |
| 4/8/2002 | EUNI | eUniverse, Inc. | Investor Insights |
| 4/7/2002 | PAXM | Premier Axium ASP | Emerging Equity Alert (25,000,000 shares) |
| 4/4/2002 | WLSY | WLSY | Stockwatch Alert |
| 4/4/2002 | OZLU | Ozolutions Inc. | Emerging Equity Alert (50,000 shares) |
| 3/28/2002 | TRGC | Trinity Energy Resources Inc. | Strategic Stock Intelligence ($15,000) |
| 3/23/2002 | SHBD | Shadows Bend Development Inc. | Strategic Stock Intelligence |
| 3/23/2002 | RRUN | Rrun Ventures Network Inc. | Market News Alert (options for 300,000 shares) |
| 3/11/2002 | GBPAA | Global Path Inc. | Investor's Alert (200,000 shares) |
| 1/2002 | AVTX | Advance Technologies | buythisstock.net (180,000 shares) |
| 1/31/2002 | ZMGE | Zamage Ditial Imaging | Market News Alert 877-453-9369 (8,500 shares) |
| 1/24/2002 | SHCC | ShareCom | Investment Special (spam) ($20,000+) |
| 1/23/2002 | CMMI | Consolidated Mineral Management | Stock News Alert 800-844-6175 ($55,000) |
| 1/18/2002 | BMII | Blagman Media International | Emerging Growth Stock Alert |
| 1/17/2002 | SSFL | Single Source Financial Services Corporation | OTC News Alerts |
| 12/15/2001 | LIVE | Live Networks | Market News Alert 877-453-9369 (85,000 shares) |
| 12/5/2001 | USTT | USA Technologies Inc. | Market News Alert 877-453-9369 |
| 11/28/2001 | ETEN | Enternet Inc. | Stockscape Network Group |
| 11/13/2001 | EMBI | EMB Corporation | Market News Alert 877-453-9369 (unspecified shares) |
| 11/7/2001 | XMLG | XML GLobal Technologies | Small Cap Central |
| 11/5/2001 | LQDX | Liquidix | Wall Street Alert |
| 11/5/2001 | CETA | Cetalon Corp. | Market News Alert 877-453-9369 (100,000 shares) |
| 11/1/2001 | CMMI | Consolidated Mineral Management | Market News Alert 877-453-9369 ($100,000) |
| 10/17/2001 | FXGP | Finx Group | MoneyLine Report |
| 9/2001 | CTLE | Cirus Telecom | OTC Investor's Edge 866-520-0100 (20,000 shares) |
| 1/20/2001 | LIVE | Live Networks | Market News Alert 877-453-9369 (250,000 shares) |
Want more details? Check the Stock Pumping page on the Cagey Consumer WikiWiki web site.