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How to avoid "pump and dump" newsletter scams
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Wednesday, December 02, 2009
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By Brian Hunt in Growth Stock Wire:

Allen came to me with the fax sheet in his hand. He had gotten it at work.

"I think I'm going to buy this stock. It sounds amazing."

Allen was holding a tout sheet. Some tiny medical company was going to introduce a revolutionary new wound spray. Its stock traded on the pink sheets, the Wild West of the stock market. Shares were going for 11 cents.

I shook my head and asked, "Allen... do you really think someone out there is handing out great free stock tips? By fax? Anonymously?"

Allen sobered up. "Probably not. Why send it to me though?"

My friend Allen is a smart guy... without much real-world investment experience. He didn't know what every investor should know...

Read full article...

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Top manager Hussman: Huge risk of a market crash

Richard Russell: "The final bear market bottom lies ahead"

Topics: Investing | Stocks
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