Analysis of a pump and dump spam email – part 1

Today I received this spam email:

A stranger suggests me to buy 90000 stocks of Liberty Coal Energy for a thousand dollars. At this moment, the price per stock is 1.1 cents. Right now the stock market is closed, because the third monday of january is national Holiday, so it’s not possible to buy them right now.
Those stocks are not traded daily, and when it happens, the volume is very low, for example on 11th january just $15 worth of stock were exchanged.
Looking at the graph, the scammer could have bought stocks at 0.26 cents on 22nd December, where there is the 322k exchanged shares peak in the volume, “investing” just $800. Since he invested in one day five times the average volume, the price rose up to 1 cent. His investment now is worth $3100, but only on paper: there is nobody to sell it in bulk, their value will be falling again.
So, he sent an email to everyone about a secret company acquisition for tomorrow 22nd january for a very high price: how many suckers will buy the stock? The price will rise? We will know tomorrow.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.