by admin on Thu Oct 18, 2007 9:31 am
Yea, I entertained the guy for a while. He is just pushing junk stock, he is not even looking for any information. I banned him when he posted a link to the mining company.
He is using proxies to access the forum. I have him connecting the first times from the United States, and then most recently from Canada.
For those that don't understand what is going on I will explain the scam.
Someone picks a penny stock and buys up some shares. Typically anyone will do.
Then you start spamming the internet talking up the stock. Everyone has likely seen the emails that promote stocks with a stock symbol in them. If you haven't, just check your junk mail bin for several million examples in your email accounts.
Well, if you send sufficient email then suckers do buy the stock and the price goes up. If it even moves a penny or two, then the spammer made their money. They dump the stock, and the people that bought it get nothing.
It is a pyramid scheme.
Now, mining stocks are especially vulnerable to this because banks and other financial organizations do this all the time.
A company finds some cool looking rocks. They go to a big bank for a loan. The bank puts its name on the loan, receiving stock in return as collateral. Average joe blow investor see that a big bank has put their name on the deal, and buys stocks also. The bank sells the stocks along with the corporate shareholders, and joe blow investor is left with nothing. By the way, the rocks have never even been kicked at the mining site let alone anything mined.
So, you can see how these two sorts of scams go well together.