Investment Spam is Funny and Sad
When I did my guest blogger gig on Problogger’s Personal Finance blog this summer, fellow guest blogger Dimitri and I had quite a good time poking fun at the investment spam emails that we were receiving.
An email that I received this morning has inspired me to continue:
Profit-Picks Alert This Week: ANDL
ANDL is our hot pick this week it is a brand
new public company that is making money and
is on the move. So be aware of this alert and
we recommend this company highly be sure to
get in early.
Company: Avondale Resources Corporation
T1cker: ANDL . Pk
Current Price: 1.00
1 Week_Target: 2.00 to 2.50
Purchase_Recommendation: Very High
The Edds South Lease consists of approximately 15 temporarily abandoned wells with equipment on them. The Company believes that methods of initial production and fluid management conveyed by past operators have left behind significant “stranded” reserves on the Edds South Lease. Plans are to re-establish production of up to 15 possible wells through a program of equipment upgrades and re-completions.
The East Cushing Redfork Sand Unit has approximately2 producing wells and approximately 10 temporarily abandoned wells. Plans for the East Cushing Redfork Sand Unit are to re-establish production of up to 10 possible wells and enhance production on existing producers. As production values increase the Company believes this lease may offer opportunity for additional wells to be drilled…
Of course these are straight forward pump and dump programs. This particular one is unique because they are actually telling you that the company sucks right in the pump email. I mean buying abandoned oil wells as a business model, all I can say is that it’s perfect timing, given the high oil prices, for a pump and dump. the other classic tell – tale sign of a p-n-d is the “be sure to get in early” prompt to trigger your greed reflex.
The stock began trading 2 days ago at $1.00 and now sits at $1.55. You’ll find a current price here. Now that’s a pretty good run up for 2 days and that’s exactly how the classic scam works, you see the price is rising [which somehow legitimizes the company] and your greed gets stirred, you don’t want to miss the opportunity to make a bucket load of easy cash and you buy. Then the promoters begin to sell and the stock plummets. Ouch.
I’m not trying to tell you this isn’t a great company [I don't know what kind of company it is], but I just wouldn’t go near anything that is promoted via spam. So yes, the email is funny, but it is sad that they are making money off of naÃ¯ve speculators who often are the ones who can least afford to lose the money.
Update: I wrote a follow-up to this story called Pump and Dump follow up.