Has anybody invested in this company? Midas

Bodgerdogs

Please help - what are your views on investing in the above company? My father was offered 3000 of these shares at $3.75 by Lox Internation (broker) out of the blue by telephone. They are currently trading at $4.65. He has had a request to send a cheque to Midas for $11250 to purchase 3000 shares.

They are currently worth $2700 more than the purchase price - so if he bought them today & sold them tomorrow he would be making a profit.

What are your views on this? Do you think it would be safe to go ahead? ???

paul666

Sounds like a 'boiler room' operation to me. Has your father checked with the fsa if it's legit. If it sounds too good to be true, it almost certainly is - i.e. he will probably lose all the money.

dunstonh

http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_high_catch.html

There are 21 firms with MIDAS in the name on the FSA register. None are just called midas.

ashcarrot

don't don't and errm don't

cheerfulcat

Hi,

There are a few US companies ( I assume it's a US company as you quote a price in dollars ) called Midas, though only one of them seems to be listed and the shares are trading at nearly $20.

http://www.hoovers.com/free/search/simple/xmillion/index.xhtml?page=1&query_string=midas&which=company&x=22&y=6

http://uk.finance.yahoo.com/q?d=t&p=&q=q&s=mds&m=United+States

Ask yourself in any case firstly, why a reputable broker would see fit to telephone perfect strangers ( hint - reputable brokers don't...) and secondly, why anyone would be selling shares at a lower price than that available in the market.

It's a scam.

HTH

Cheerfulcat

cloud_dog

There's an old saying:

"If it sounds too good to be true, then it probably is"

cloud_dog