Sunday, January 28, 2007

The Power of Spam

New project: since I started investing, I've been noticing more stock spam in my spam folder. So a challenge came to mind:

How fast can I make (or lose) money following spam stock advice?

The parameters: I start off with $100k and every time I see a stock being pumped by email, I will invest appx. $10k into it. All buy orders while market is closed. To make things a bit more automated, all buys will be immediately tagged with a trailing-stop sell order set at 10%, meaning if something I buy drops by 7.5% it's an automatic sell. I will be using thinkorswim's "PaperMoney" software to do this simulation as it tracks all relevant fees and such. I will also post up the email that leads me to pick each stock. The text in some of this stuff is hilarious and/or disturbing.

The preface: the last stock I saw was PSUD.PK, which was excellent because Google Finance didn't even know about it. After it was pumped, the stock jumped 20% in a day. Hey, not bad for stock manipulation!

Why: My gut feeling of course is that I'll be losing money faster than I can make it, especially counting in brokerage fees. But it will be very interesting to see the trends from when I see a stock spam in my until the sell order goes through.

The First: HPGI. Yahoo Finance doesn't even know what HPGI is but of course the email will tell you. Current price is 1.0440. Limit order for 9500 shares at 1.05 sent.

Brand New Issue!

As close as you get to an IPO on the piinksheeets, HPGI is set to become the
popular kid on the block! This high-flying gold industry company is making it's
debut with a wide reaching publicity campaign that is going to have the
ear of the investment community.

Hemisphere Gold, Inc.
Current Prrice: $1.05
Tarrget Prrice: $2.30

This issue is so tightly held that the combination of big news and the huge
publicity it going to easily push it to the target price!

Get in early on January, 29th and win with HPGI.

Graham said the charge of aggravated manslaughter of a child would be difficult for
prosecutors to prove adding If these men can raise the money to put on a good defense t
o hire the right experts they have an excellent chance of being found not guilty
Bob Pell an attorney who represents former guard Joseph Walsh Jr told The Associated.
Let's see how this one does.

No comments: