Cagey Consumer

Consumer Alert: Pumped Stocks Will Eventually Collapse

Maybe you've received a free investment newsletter in the mail... perhaps on your fax machine... or maybe spam ... all telling you about the latest undervalued stock.

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
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 GK Intelligent Systems Microcap Markets ($8000)
8/17/2002 CBYI Cal-Bay OTC Newsletter ($27000)
8/8/2002 IBXG IBX Group Emerging Equity Alert ($2000)
8/7/2002 RMDC Rubicon Medical Special Situations Alert (110,000 shares)
7/24/2002 VEII Voyager Entertainment International American Power Stocks ($50,000)
7/23/2002 SCAL Inc. Stockwatch Alert (250,000 shares)
7/23/2002 WTMK Whitemark Homes 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 (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.

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Updated February 4, 2004