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Re: ddm1082 post# 15387

Friday, 02/18/2011 11:35:39 AM

Friday, February 18, 2011 11:35:39 AM

Post# of 93140
When I say a pump I am referring specifically to instances where companies pay newsletters and bloggers a fee to send out their stock as a recommendation.

All I am saying is that if you look at data on penny stocks doing paid pumps (paid pump data) there is a statistically significant negative correlation between the pumps and the share price.

This logically makes sense, there is only one incentive for someone to pay to promote a stock: if they are planning to sell shares. For this reason, traders should read paid pumps as a market signal of selling pressure ahead.



is there any form of advertising you wouldnt call a pump? Are you looking for free advertising? im confused.

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