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Spammer thinks SCOX is ready for the pink sheets< does 300% increase get your attention????????? > The network security firm Marshal has a recent white paper on pump & dump stock spam: http://www.marshal.com/newsimages/trace/StockSpam.pdf Their first example is from the same spammer now promoting SCOX: --- We last promoted this stock ( FCYI.pk ) Last week of may through first week of June does 300% increase get your attention FALCON ENERGY INC (fcyi . PK) Current Price: $ 0.60 OverView An independent resource exploration and production company whose current projects range from the production of natural gas and oil in Alberta to the exploration for minerals such as copper and gold in Mongolia. Is fcyi . PK Ready To Go? If You Think So, You know what to do, happy earnings :) --- Other examples are easy to find by direct search. Some of the target stocks have been WBRS.PK, AETR.PK, and CYHD.PK -- all pink-sheet issues trading well under $1. From this we can conclude that a new holder is now in the picture -- one that specializes in true penny stocks on their final slide to oblivion. This holder's motives and intentions can be gleaned from an academic study cited by Marshal: --- Can stock spam actually increase stock prices? Researchers Rainer Böhme and Thorsten Holz, from Germany, recently looked into the question and found the answer was yes – at least in the short term. "The persistence of such spam, as well as the results presented below, led us to conclude that this pump-and-dump strategy actually works." -- Böhme and Holz, “The Effect of Stock Spam on Financial Markets”, Workshop on the Economics of Information Security (WEIS), University of Cambridge UK, June 2006. The researchers found that the arrival of stock spam resulted in a positive cumulative increase in stock price that fades over time and finally turns negative after day 4, as in the following table. Day.....Cumulative Return 0.........+1.7% 1.........+0.9% 2.........+1.2% 3.........+0.2% 4.........-0.7% The team also found that new firms are constantly becoming victims of stock spam and that the large majority of it arrives on weekdays. They postulated that three groups of people are involved in the trading: • Spammers, who benefit by quickly selling pre-bought stocks • Naive traders who actually believe the investment advice in the spam • Smart traders, who recognize that a scam is being attempted and jump on the bandwagon before also quickly disposing of the stock. Other researchers have reinforced these findings. Frieder and Zittrain, in their paper “Spam Works: Evidence from Stock Touts and Corresponding Market Activity”, found that stocks experienced a significantly positive return on days when were heavily touted via spam, and on the day preceding such touting. Volume of trading also responded positively and significantly to heavy touting. However returns in the days following touting were significantly negative. While the evidence suggests a spammer might benefit from stock spam in the short term, in the longer term, betting on spam stocks seems a sure-fire way to lose money. In 2005, a fictional portfolio of spam stocks was created. An initial outlay of $53,163.00 turned into a loss of $39,346.50. More details can be found at http://www.spamstocktracker.com Another source on the web for people interested in daily price movements of spam stocks is The Stock Spam Effectiveness Monitor (http://www.crummy.com/features/StockSpam). --- |
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Msg # | Subject | Author | Recs | Date Posted |
13675 | Re: Spammer thinks SCOX is ready for the pink sheets | Cambo | 4 | 12/4/2006 12:24:22 PM |
13694 | Re: Spammer thinks SCOX is ready for the pink sheets | paulshirley2006 | 7 | 12/4/2006 12:49:59 PM |
13695 | Re: Spammer thinks SCOX is ready for the pink sheets | hamjudo2000 | 11 | 12/4/2006 12:50:33 PM |