Stock Spam: Any Hidden Gems?

I get a lot of spam telling me about the next hot stock pick. It always tell me to act quickly so that I “DON’T MISS Ride this stock rocket.” Below I will analyze how these stocks actually performed compared to what the spam email promised. I doubt the companies themselves send this spam, but who knows. Therefore, do not buy these stocks without doing the proper research! Unfortunately, I only have data back to November 7th, 2006, but I’ll try and keep this updated as I receive new spam. The price listed will be the stock’s price at the close of the business day after I first received the spam (or the opening price of the next business day if the spam-advertised stock was received on a weekend or after market hours). The target price, if given, is the price that is quoted in the spam as the incentive to buy the stock.

Before even looking at the results I’ll make the guess that you will not make money on these stocks. If, for whatever reason, the stock price does go up, the volume on these pink sheet or over-the-counter stocks is so low that it would be difficult to sell (or even buy in the first place!) For example, the amount of money that is exchanged on the average day with these stocks ranges from less than $4,000 to about $500,000 (for WEXE). In comparison, on average over $800 million exchange hands with General Electric, $1.7 billion with Microsoft, and $3.3 billion with Google. It is much, much easier to buy and sell shares with high volume.

My opinion is that these stocks are something that you definitely do not want to buy-and-hold. In the very short-term, it may be possible for a few people (namely the spammers) to make some money…a few of the stocks have a small upswing immediately following the spam-advertisement of a stock.

Related Websites:
Spam-advertised stocks
Backtesting Stock Spam
Spam Stock Tracker
Pumping Stock, Spam and the Criminal Underworld
Stock Spam Effectiveness Monitor
Secrets of stock spam scams revealed: ZDNet

Current = November 22, 2006

Indices on November 7, 2006
Dow Jones: 12156.77
Nasdaq: 2375.88
S&P 500 Index: 1382.84
(I’m including these as a comparison to show how much better you could have done by investing in the general market than in the below spam-vertised stocks.)

November 7, 2006
Stellar Resources SRRL.OB Buy: 1.46 Target $20 Current: 0.94
Terax Energy TERX.OB Buy: 0.224 Target: None Current: 0.21
Ever-Glory International EGLY Buy: 0.60 Target: 1.30 Current: 0.49

November 9, 2006
PRG Group PRGJ Buy: 1.20 Target: 10 Current: 1.17

November 10, 2006
Red Reef Laboratories RREF Buy: 0.32 Target: 0.80-1.10 Current: 0.18
Cana Petroleum CNPM Buy: 4.0 Target: 15.40 Current: 1.55

November 13, 2006
West Excelsior Ent WEXE.PK Buy: 1.06 (Opening) Target: 2.50 Current: 0.60
Matrixx Resource Hldgs MXXR.OB Buy: 0.021 (Opening) Short Term Target: 0.10 Long Term Target: 0.45 Current: 0.02
American Unity Investments AUNI.OB Buy: 0.71 Target: 2.14 Current: 0.4750

November 14, 2006
X-tra Petroleum XTPT.PK Buy: 0.006 Target: 0.017 Current: 0.0075

November 16, 2006
Tora Technologies MAKU.OB Buy: 0.97 Five-day Target: 4.0 Current: 0.739
Motions Pictures Group MPRG.PK Buy: 0.27 Target: 1.00 Current: 0.23
Asgard Holdings Inc. AGHG.PK Buy: 0.07 Target: 0.65 Current: 0.06

November 17, 2006
China Health Management Corporation CNHC.PK Buy: 1.61 Target: up and up Current: 1.34

November 20, 2006
Great American Food Chain GAMN.PK Buy: 1.01 Target: 3.20 Current: 0.85
Stellar Resources SRRL Buy: 0.90 Target: 5.0 Current: 0.94

November 21, 2006
Nano Superlattice Technology NSLT.OB Buy: 0.22 Long-term Target: 5.50 Current: 0.43

November 27, 2006
Bralorne Mining Company BLNM.OB Buy: 0.235 3-Day Target: 0.55 Current: 0.25

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