The stock scam emails just keep on pouring in

I’m starting to wonder if these stock scams are ever going to let up. If anything, they’re just getting worse and worse. Many trends have an exponential ramp-up period and then fade away into obscurity (think Pogs); I’m just hoping it comes sooner rather than later for these stock scam emails. But they have to stop at some point eventually, right? Or do you think that, a hundred years from now, we’ll just be dealing with 3D holographic stock scam messages? Ugh.

So, let’s take a look at the latest round. Harris Exploration Inc. (HXPN.PK) was first promoted right around the beginning of 2007. Its share price rose rapidly from $0.30 to $1.60, but has been in decline ever since, and now stands at around $0.65. This stock is still being actively promoted though, which makes me think the scammers haven’t yet sold all of their shares, and are still hoping to get the price up some so they can sell off their last shares. This stock looks to have been very profitable for the scammers though. If they snatched up a bunch of shares at $0.30 and then sold them off at $1.60, I don’t need to tell you that that’s a huge profit. It’s just everyone else who bought the stock — especially on the “advice” of the spam emails — that got fleeced.

China Voice Holding Corporation (CHVC.PK) has been heavily promoted for a few months now. I’m guessing it was chosen for how hot Chinese stocks are doing right now (over 100% growth in the past year), though it’s actually a company headquartered in Florida that does most of its business overseas through subsidiary companies. Historical stock data on this company is limited, although I can say that it’s been trading between $0.40 and $0.60 this past month. I don’t know how high it was right before March, when it was first touted, but I imagine that the spammers (and nobody else) made a nice profit off this one as well. I just wonder who all of these people who continue to fall for stock spams are. Do they really think that they can beat the spammers?

The spammers send out millions of emails (and apparently junk faxes too), and all it takes is one poor unfortunate sap to invest a decent amount of money for the spammers to profit handsomely. Really small market cap stocks are basically a zero sum game: most of the money put into them by people responding to the spams just goes directly into the hands of the spammers. So don’t get caught up in it, and never buy any stock that was recommended to you unsolicited.

See my other posts on stock scams.

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