Wednesday, April 26, 2006

Penny Stock Scams and Spams

Is anyone seeing more in the way of "investment" literature emphasizing never heard of penny stocks and obscure Pink Sheets and OTC Bulletin board stocks in recent months. I've received hashed together "newsletters" in the mail in addition to a number of emails from people with ridiculously sounding names. The subject matter is always an obscure stock that generally trades for less than a dollar, but has made a sharp move in recent days. One such example is a company called iKarma, ticker symbol IKMA. Look at the chart for this thing. The stock has moved from 6 cents to 31 cents in the matter of about a week. Now I received the "touting" email just today, after the 500% move. How many saps ran out there today and bought some stock and said "well it's only 31 cents, how much can I lose?" Rule of thumb...don't buy stocks that an email spammer recommends! Come on, use some common sense. These solicitations are no better than those that try to lure you into buying a Viagra substitute or Male Enhancement pills for "her pleasure." Do you respond to those "ads" too?

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