Penny Stock Spam Comes to a Halt
If you actively use email like me, you have been receiving those stupid stock alerts. They claim “investors finally valued the product and started to invest” and “WE Will Just start it’s EXPLOTION. Market will make itself the rest”. I have noticed that these emails have suddenly come to a screaming halt…why? It turns out that the federal Securities and Exchange Commission suspended trading on the penny stocks that were hyped up through SPAM. It’s about time.
I would have loved to see some effective action taken against spam just because it’s annoying and an invasion of my inbox. Unfortunately, that hasn’t happened as we all still get it…until recently. SEC launched “Operation Spamalot” on Thursday, Marh 8, 20072. The reason they are taking this action is not because of the annoyance of spam. It’s because it is more of a scam. These unknown individuals are investing heavily in these penny stocks and then sending hundreds of millions of emails to investors trying to hype up the stock. When the stock goes up, the unknown individual then sells out and usually makes a good chunk of change. The reason why SEC is taking down these stocks is because some of the information spread about the companies are questionable. (See footnote #2 for examples).
I would think that it would be relatively simple to track down these…people that are committing these questionable activities. All one has to do is track down the person that sells out for a huge profit. Nobody else would have the motive. So far, I haven’t heard of anybody being caught, but at least they are being stopped.
1 http://www.forbes.com/business/2007/03/08/spamalot-sec-penny-stocks-biz-cx_lm_0308spamalot.html
More Information:
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/08/AR2007030802092.html
http://www.signonsandiego.com/news/business/20070309-9999-1b9sec.html
This entry was posted on Thursday, March 15th, 2007 at 2:17 pm and is filed under Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
