This stokc is expected to double.

Colxfile

Yeah. You've probably had as many of these spam emails as I have. "Buy this stock" "We always get x00% growth" "blah blah market blah blah..." etc ad nauseum.

A long while back, I spotted this article on BBC. It made me wonder if one could profit by shorting the stock that the spam encourages you to buy.

Any thoughts? Or am I just being naive?

(Sorry if you thought this was going to be a share tip...) :rotfl:

andrew_b6k

Colxfile wrote:

Yeah. You've probably had as many of these spam emails as I have. "Buy this stock" "We always get x00% growth" "blah blah market blah blah..." etc ad nauseum.

A long while back, I spotted this article on BBC. It made me wonder if one could profit by shorting the stock that the spam encourages you to buy.

Any thoughts? Or am I just being naive?

(Sorry if you thought this was going to be a share tip...) :rotfl:

Aren't these stocks usually very illiquid? I'd imagine that even the most resourceful hedge fund manager would have trouble getting his prime broker to lend these names.

At a private client level, I don't even know how you'd go about arranging the necessary margin, given that this crap could skyrocket it would be a risky business.

Chrismaths

Like andrew says, you'd never get hold of the stock. And if the "pump" is successful, you could face some nasty margin calls.

Colxfile

Sorry to bump this thread, but I thought you'd like to know that since posting this, my spam folder has received double the number of the "This stokc expected to double" variety of spam emails.

Oh the irony.