GGNC - GIC/Global Intertainment Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : GGNC - GIC/Global Intertainment Corporation

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ztect who wrote (392)	11/27/1998 9:48:00 AM
From: ztect	of 2585

FYI- Pump and dump a Must Read upside.com September 25, 1998 By Geoffrey James Pump and dump The Systems of Excellence debacle is the high-tech version of the infamous (and age-old) "pump and dump" routine. Traditional pump-and-dump operations are run out of "boiler rooms" filled with telemarketers who use high-pressure sales tactics to get regular folks to buy questionable stock. The artificial demand they create causes the stock price to rise, at which point the investors who are "in the know" sell their shares, and the investors who bought from the boiler room are left with a portfolio of toilet paper. Systems of Excellence, however, was never pumped up by a boiler room operation. "Unsolicited phone calls from brokers were not a significant portion of the sales of this stock," explains the SEC's Schwartz. Instead, SEXI was promoted--at far less cost--directly over the Internet. Furthermore, the scam benefited from the ready availability of online trading, which made it all too easy for Web-enabled investors to buy SEXI shares. "Systems of Excellence is the poster child for Internet hype," says the SEC's Stark. "Here you have a company that never sold a product that suddenly achieves a market capitalization of $350 million, mostly because of promotion on the Internet."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next