What Paid Promotional Stock Mailers Actually Look Like
Posted by Pallian (Moderator) on Sat 31st of May, 2008 01:54:58 PMA few weeks ago, I found a great little message board that focuses specifically on the reporting of paid promotional stock mailers. Shady “companies”, shareholders and stock promoters pay services/professionals to send out hundreds of thousands, or millions (depending on their budget), these wholly absurd/inaccurate promotional pieces, that you gotta learn to love–not detest–cuz they’re dead giveaways of pump and dumps, which are perfect for PennyStocking profits!
Typically great stocks to sell short for quick drops off of multi-day spam-induced spikes and for the long-term, you gotta be careful cuz lately scummy spammer stocks like 4imprint Group plc (FOUR), FORCE ENERGY CORP (OTCBB:FORC) (FORC), Hybrid Technologies Inc. (OTCBB:HYBR) (HYBR), KENTUCKY USA ENERGY INC (OTCBB:KYUS) (KYUS), MAXLIFE FUND CORP (OTCBB:MXFD) (MXFD) and JAYHAWK ENERGY INC (OTCBB:JYHW) (JYHW) haven’t stayed down for very long…even if there’s a 99% certainty they’re destined to fail/have their stocks trade under 10 cents/share.
Here’s the message board creator, Peter Michaelson’s, unsurprisingly similar take on the subject (hard to think of the any of other way) and below that are pics of some recent mailers:
A mailer is a hard copy brochure or letter urging the recipient to invest in a particular stock. A paid mailer is one which has been paid for as described in the SEC required disclosure statement included with the mailer.
Over the years, my experience has showed that a paid mailer is a nearly infallible indicator of a ‘pump and dump’. The mailer is the pump. The stock often rises at first. Over the next several months the stock price falls as the promoter who paid for the mailer repays himself several times over by selling stock into the buying precipitated by the mailer.
Mailers usually use plenty of exclamation points and hyperbolic language. They sometimes even ask what you will do with the profits you make investing in the stock.
Paid mailers are junk mail!!
I hope this becomes a useful tool for investors.
Peter



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