Pump-and-dump is not going out of style any time soon.
Content Security was able to catch spam that advertises the stocks of Angstrom Microsystems (NASDAQ: AGMS), which it claims are soaring and that now would be a good time to invest. This is after news of the company’s latest installation project was released to the public. This recent endeavor, at least according to the spam emails, will likely make Angstrom Microsystem’s stock prices soar.
Spam has often been used to influence stock prices, mostly to lure novice investors to purchase “hot” stocks. Interesting enough, this does lead to a short-term increase in share price. In most instances, however, these prices experience a sharp decline afterwards. This is one reason why it’s not usually in the interests of the company to send stock spam.
Moreover, the practice of sending stock spam is frowned upon by the industry, so as to discourage the manipulation of stocks by people with malicious intent. PinkSheets, a site dedicated to the listing of stocks, even marks stocks advertised by spam with a Caveat Emptor (Buyer Beware) mark, below is a screenshot of the said warning:
Misspellings in these spam are enough to arouse suspicions with regard to its origins, as these are actually telltale signs that spammers are tying to bypass spam filters. Spam really is not a good source of information for investment purposes, so you’d be better off asking your trusted stock broker instead. Note that Angstrom has already commented on this spam run.