o How Pump & Dump Works o What to do if you think you may be a victim o Current Pump & Dump Suspects [DMR] o Previous Pump & Dump Suspects o Links to key posts in this thread o External Links

This thread is work in progress, is reserved for a discussion of the Pump & Dump process, and to flag up UK stocks that people feel may be currently subject to that process. The intention is to keep the 'meat' of the content in the header, which will be frequently and regularly updated from any posts made to the thread. I'll also use the main thread as a change control to record and audit updates to the header. If you have been the victim or perpetrator of a pump & dump, I would welcome your comments and stories (anonymously if preferred) as posts to the main thread. I will include extracts from them, and links to them in this header. If you prefer, you can click on my username and email me your stories through the MoneyAM internal mail system

How Pump & Dump Works

Pump and Dump schemes are a technique used by devious and immoral traders on thinly traded stocks to con unwitting and unsophisticated traders out of their savings and to make huge profits for themselves.

Candidate stocks are typically low liquidity penny shares with a history of low volume that suddenly hit the limelight when one or more energetic, enthusiastic and ebbulient posters 'discover' them and claim them as hidden gems. The usual scenario is that despite no change in the rate or quality of newsflow there is a rapid rise in volume, a disproportionate rise in price signifying accumulation and pump with little or no selling, an exhaustion peak and then a rapid return to previous levels or thereabouts, with our ebbulient posters moving on to pastures new. Price and volume usually then return to normality.

A pump and dump scheme usually has the perpetrator buying at low levels for some weeks prior to the pump stage, after which they promote the share, typically via BBs and/or mailing lists. They may buy a few during the pump and make sure everyone knows that they're buying, but they'll also sell a few more to take profits. It's the victims of the scheme who buy the shares the fraudster is selling.

When the fraudster thinks that she's unable to inflate the price any further, or has reached her profit targets, she'll start selling a lot harder. This is the 'Dump' stage of a pump and dump. She'll claim on the BBs that holders should 'keep the faith', she'll blame the shorters, she'll try to encourage people to top up and she'll promise lashings and lashings of jam tomorrow. She may buy a few and publicise the buys just to cover her tracks. But on the whole, she'll be selling.

At this point, the price may yoyo a little but the fraudster's selling is putting an overall downward pressure on the share price.

At some stage soon we get a 'race to the exit'. Some of the mugs who have been suckered in, start to realise what's happened and they too sell. The fraudster sees the sells, realises the game is up and dumps all of her remaining holdings.

The price drops, often by as much as 75% in a matter of days or hours. Those who are lucky enough to get out do so. The first ones to get out see a small profit or a small loss. Those who aren't so lucky typically leave the share certificate in a bottom drawer somewhere, determined to wait until they can get their money back before selling. Usually they never do. Some will wait forever, and have effectively lost their whole investment, others may sell a year or two later, perhaps at 1% of their purchase price.

What to do if you think you may be a victim

If you're reading this then you've already got over the first hurdle - denial. Most traders suckered into these schemes refuse to recognise that they're being conned despite warning signs that are so obvious in retrospect. A significant number remain in denial for many years after the price has collapsed and never get around to selling - a phenomenom psychiatrists call 'cognitive dissonance'.

If you've bought into a pump and dump and have recognised it for what it is, you're probably wondering what to do. Chances are, you're thinking "I can't sell yet cos its not quite covered my buy price .... just a few more fractions of a penny and I'm out".

So What do you do?

Firstly - you need to ensure that the money you have invested into the share is within your comfort zone. Ask yourself "Will I mind if I lose it all?" If the answer is "no, I'm happy to lose the lot", then play this however you see fit. Maybe you'll make some money, maybe you'll lose your entire investment.

If it's "I daren't lose it all, I wont be able to face my bank manager /partner /kids /parents /landlord/ gasman" (delete as appropriate) then you need to take a long hard look at the way you trade, and you *must* reduce the size of your holding to the level where you don't mind losing all of what's left - even if you have to take a small loss on the tranche that you sell. Bad tasting medicine, I know, but infinitely preferable to the alternative. Get yourself onto a risk management course. I would expect www.glomtc.com to run courses along these lines.

Although pump and dump schemes are illegal worldwide, succesful prosecutions are rare and almost non-existant in the UK. The highest publicity case in the USA related to a 14 year old boy who was eventually fined more than $250,000 having made much more than this through using internet BBs and spam mail to promote and then dump his penny stocks.

The highest profile UK case was probably the Daily Mirror City Slickers scandal that eventually came to court in November 2005. The court heard that Piers morgan bought 66,000 worth of Viglen shares the day before the Mirror tipped them. James Hipwell also bought 36,500 worth which he sold at 9.00am the next day for a profit of almost 20,000. Also tried was a BB Poster whose real name is Terry Shepherd - he was accused of forming part of the conspiracy.

Trade suspect shares if you must - but keep your wits about you.

Current Pump & Dump Suspects Dimension Resources - DMR

EPIC: DMRName:Dimension ResourcesCategory: Illiquid Penny ShareNMS: 3000Current Phase: PUMPAccumulation Started: Around July 2005Pump Started: Late October 2005Dump Started: Awaiting Data

Previous Pump & Dump Suspects

EPIC: CFPName:City Financial associatesCategory: Illiquid Penny ShareNMS: TinyAccumulation Started: est Jan 2004Pump Started: 31/03/2004Dump Started: 28/04/2004Maximum Loss To Victims: 81%

Links to posts within this thread Posts 2,3 and 4 on page 1 of this thread are typical indicators of the pump stage of a pump and dump scam. The scammer cross-posts buy recommendations for their stock on multiple threads, and points to their previous pump and dump scams as successes. Naturally, they only mention the low (where they bought) and the high (where they exited). The victims bought at those highs and will probably never see those prices again. Those victims have been well and truly conned out of their money, and many will never realise how and why they were deceived. External Links SEC Article Wikipedia 14 year old fraudster Investopedia link

O my god Gausie.....are you serious...after all the deramping you've done.

I knew you are sad......but this sad....keep at it my friend....I want you to be active deramping DMR thread for a few months more yet....you've been doing it for 2 months along with 26 active derampers and you cry pump and dump. Maybe because whilst you've been deramping the price has been rising.............cry baby cry Gausie....that's all you can do.

Some laugh....just what I needed to start my day.

Gausie...get your rose tinted spectacles off and look at the below from HRR thread....now that is a pump and dump with no analysis or anything. I think you just getting jealous Gausie because you couldn't muster more than one line with your deramping of DMR.

Nothing new then.....someone put Dil out of his misery....poor soul has been flogging these for months.
dazaferguson - 21 Jan 2006 17:41 - 22 of 24
They are going to rocket soon mark my words.
SueHelen [View SueHelen's profile] - 21 Jan 2006 18:34 - 23 of 24 edit this post
One Page analysis..........not the one line ramps please.

The poor bloke Gausie is so desperate to keep his pride because the coming weeks is gonna be even worse for him as DMR is gonna do exactly the opposite of what he's been writing.

Hey Gausie....you said don't buy DMR at 0.30 pence and now the price is 0.60 pence to buy.....why does no one touch on this..........................has a compensation board been set-up here..........don't u think we need one if the price balloons to 2 pence.

Gausie
Excellent new thread.
Hopefully will be of benefit to the inexperienced investor in deciding whether to believe everything he/she reads on a BB regarding particular shares.

Well said sir, rampers out.

Gausie, good topic. Keep it up :-)

I think what Gausie is saying is buy if you believe in the share - but don't believe what others tell you on the BB - would you buy a stock if someone you don't know phoned you up and told you it was a good buy? And don't buy on margin unless you can face the consequences. Langbar is a prime and recent example. Use the old Warren Buffet adage - don't buy a stock for one minute if you wouldn't be not prepared to buy the whole company for ever.

Yes, I've been caught, but fortunately lived to tell the tale as the stock I was caught on was not on margin and only a small proportion of my portfolio.

I think that, with the proliferation of financial BB's combined with the ease with which you can open an online trading account, the result has been a huge number of inexperienced traders (punters would be a better word) buying and selling shares in the same vein as betting on the horses.

This, in turn, has enabled unscrupulous individuals to 'pump and dump' shares in very small and illiquid companies knowing that there are many people who will be sucked into the story that a particular share is about to shoot up in price.

Whilst you can take the stance that it 'serves them right' to fall for such a scam I think that it can only be a good thing if threads like this can also help to prevent any financial loss.

Hey alert Gausie...alert Gausie...alert Gausie...where art thou'

Can you set one of these up for deramping going on.....please.

Have you had the guts to bring Dil and katcenka who was ramping HHO and BSP at 2.50 pence to your court. Incidentally I was so called ramping BSP at 0.30 pence before they ballooned to 2.50 pence then katcencka took over......did u miss out on that one as well...tough.

SH - please provide further details - I'd like to illustrate some past Pump & Dumps - I need dates of accumulation, dates for when the pump stage started, evidence of the pump stage, evidence of price inflation, dates for when the dump stage started, evidence of rapid price deflation, and ideally I'd like one or two victims to comment. Please post here.

I'm just turning my attention to some other older pump and dumps that have been brought to my attention. Doubtless you'll have plenty to say on those too after they've been analysed.

Ta

Gausie

Bring him to your court Gausie or get a life and do something more useful with ur time.


SueHelen [View SueHelen's profile] - 21 Jan 2006 11:41 - 21 of 29 edit this post
Nothing new then.....someone put Dil out of his misery....poor soul has been flogging these for months.
dazaferguson - 21 Jan 2006 17:41 - 22 of 29
They are going to rocket soon mark my words.
SueHelen [View SueHelen's profile] - 21 Jan 2006 18:34 - 23 of 29 edit this post
One Page analysis..........not the one line ramps please.
dazaferguson - 22 Jan 2006 11:30 - 25 of 29
Suehelen
Your onepage effing ramps are only copied and pasted from other sources.
All my info on Harrier is from I have written myself.



There is only ONE share to be loaded up with at the moment and that is the cash shell called Harrier(HRR).

Harrier are a cash shell with a market cap of 4.5 million and they have the same amount of cash in the bank.
They have 2 employee's and the interest on this cash will more than pay for their salaries.
A reverse deal is due any day and the shares will rocket believe me.

Bob Morton ( Southwind) has recently increased his stake to the max allowed of 29.9%.

He is a very shrewd cookie.

Strong BUY.

target price 50p and I aint joking.
SueHelen [View SueHelen's profile] - 22 Jan 2006 11:33 - 26 of 29 edit this post
No thanks but Gausie might be interested in this pile of poo.
dazaferguson - 22 Jan 2006 11:36 - 27 of 29
"pile of poo".

How dare you name call this company when big corporate action is on the way.
SueHelen [View SueHelen's profile] - 22 Jan 2006 11:37 - 28 of 29 edit this post
It'll do go up by 200% at the most Dil............doesn't do it for me that's all.
mikeingam - 22 Jan 2006 20:11 - 29 of 29
There is only ONE share to be loaded up with at the moment and that is the cash shell called Harrier(HRR).

Harrier are a cash shell with a market cap of 4.5 million and they have the same amount of cash in the bank.
They have 2 employee's and the interest on this cash will more than pay for their salaries.
A reverse deal is due any day and the shares will rocket believe me.

Bob Morton ( Southwind) has recently increased his stake to the max allowed of 29.9%.

He is a very shrewd cookie.

Strong BUY.

Target price 50p and I aint joking.

There is only ONE share to be loaded up with at the moment and that is the cash shell called Harrier(HRR).

Harrier are a cash shell with a market cap of 4.5 million and they have the same amount of cash in the bank.
They have 2 employee's and the interest on this cash will more than pay for their salaries.
A reverse deal is due any day and the shares will rocket believe me.

Bob Morton ( Southwind) has recently increased his stake to the max allowed of 29.9%.

He is a very shrewd cookie.

Strong BUY.

Target price 50p and I aint joking.

SueHelen, eh? Now there's one pumper to ignore - doesn't know how to dump?

Timely thread IMO given the way some stocks are shifting this past few months. Mass pumping is always followed by mass dumping. ;-))

Others too hard to pick on again Big Al....sorry don't fancy you...think you fancy yourself too much.

There is only ONE share to be loaded up with at the moment and that is the cash shell called Harrier(HRR).

Harrier are a cash shell with a market cap of 4.5 million and they have the same amount of cash in the bank.
They have 2 employee's and the interest on this cash will more than pay for their salaries.
A reverse deal is due any day and the shares will rocket believe me.

Bob Morton ( Southwind) has recently increased his stake to the max allowed of 29.9%.

He is a very shrewd cookie.

Strong BUY.

Target price 50p and I aint joking.

This thread is a farce and sorry Gausie...a waste of time and a whitewash.

If you need to set up a thread to blame someone for your loosing money,then you really should find another job .

Change Control 01, Header Updated, Date and time as post.

Having copied and analysed threads on MAM and on ADVFN, have concluded likely manipulation of share price of CFA capital.

EPIC: CFPName:City Financial associatesCategory: Illiquid Penny ShareNMS: TinyAccumulation Started: est Jan 2004Pump Started: 31/03/2004Dump Started: 28/04/2004Maximum Loss To Victims: 81%

MAM Source: Pump & Dump of CFA Capital

If you need to set up a thread to blame someone for your loosing money,then you really should find another job .

SueHelen, I think you would do yourself some favours by trying to support the efforts of highlighting some pretty dreadfull scams that cost people lots of money rather than trying to smear the thread. You have come across as very defensive and this has done you a lot of damage. If you said, yes, pump and dump does exist and it is dreadful then that would have probably gone down well. As it is, well, you look a bit of a wally in all honestly.

Scrip....that is not the intention of Gausie that's the problem. The cry baby has been deramping DMR for weeks and whilst he's being doing it continously the price has been rising...in fact risen by 100% and much more to come. Because his deramping has not worked the cry baby has become so desperate with his deramping that he has started this thread now aimed at me.

Cry baby Gausie...I say cry baby.

People who don't have nothing better to do set up these kind of threads.....Go back to work Gausie.