Friday 11 July 2008

Here’s a tip for you, free of charge!!

I received a phone call from a woman claiming to work for a brokerage firm in Zurich. She claimed to have many high income clients like me, and had an investment opportunity that had just come up. She had news that the government was about to invest heavily in alternative energy and she could buy me some shares in an alternative energy firm that the government was going to invest in. The company is registered in Germany (ticker A38.F). According to her the shares are currently selling for 2.20, but she would get them for me at 1.29. That’s a huge discount. However, it’s a minimum investment of 5,000, but she was certain that the share price was about to explode and I would make more that 10 times my investment. I allowed her to finish her sales pitch and then politely told her that I was not interested in buying the shares.


This type of activity has been around for a long time. You can refer to them as stock selling promoters. They create markets for companies to get rid of their shares to unsuspecting members of the public. This is done either by the brokerage firm phoning people directly or through email. One of the popular email stock promoters is Jarret Wollstein (in the US). There are many others who also claim to be experts at identifying good stocks. Most of these guys are based outside the UK as the market is highly regulated here, and such practises are illegal. Here’s an example an email that I’ve received in the past.








Finally, my tip for you is if you get a similar phone call or email, ignore it. They want to offload shares to you which you would be unable to sell.

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