Read Scott here on iBankCoin and also at http://www.createcapital.com/
Joined Jan 19, 2010
717 Blog Posts

The New (Old) Way of Stock Scammery…

A client sent me an email that he received earlier in the week. It was a recommendation for a Penny Stock, TFER. The stock was up 500% that day.

In the disclaimer it stated, in very small print, that the “research” was paid for by $1.1 million over six months and an undisclosed (in that email) boatload of stock.

Since the market is owned lock, stock and barrel by the Federal Reserve and Primary Dealers combined with Hedge Fund Hotels like Apple & Google, all that is left is “The Scam”.

It seems that there are many “research firms”, “research web sites”, “research advisory services” and “research subscription sites” that promulgate this 21st Century Penny Stock Scam.

It’s the same as it ever was. If you do play that crapola, make sure yo know how to exit, stage left. If not, you will be left holding the bag.

Here is the disclaimer that makes the Scam legal…

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  1. metalleg

    I have played this crapola numerous times in the past and have learned the hard way to get out when the gettins’ good.

    Once you’ve been burned by a few, you can identify the pump and dumps and trade accordingly. Make very small bets and take profits fast.

    I rarely deal with this crap any more but once in a while, I get a “tip”.

    The latest is MDHI. They make a medical pendant for emergency response (“I’ve fallen and I can’t get up”). They are selling them in Costco but it doesn’t matter.

    I’m at my cost basis and expect a run at some point. Reminds me a little of Spongetech. That was one of the biggest winners I can ever remember, until they crashed and the principals were arrested.

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  2. Cascadian

    This is so different today! Wall St never had scams in the past.

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  3. Nyjag

    BEWARE…The diff between these Pand D scammers and the Blind ’em n Rob ’em penny stock firms of yore, is that the PR/rsh firms aren’t finra licensed and don’t open accts and buy shares for the public. There is very little if any regulatory liability with the proper disclaimers. Aside from the news letters and e-mail blasts, They will call and reach out to financial advisers and brokers to create demand and pitch to their clients.
    I get periodic calls from these “research” firms and usually feel the need to shower afterward.

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