This Subject is intended to become a database of paid promotional stock mailers.
|An SI Board Since August 2006|
As of December 2009, I plan to post online stock promotions that I have evidence exceed a budget of $100,000. Mailers seem to be on the decline, so perhaps more of the action is moving online. Necessarily, the collection of online promotions copied here will not be as comprehensive as as the mailer database has been - online promotions are easier to overlook.
As of September 2007 I am trying to add advertisements for stocks that I see in major periodicals such as Barron's, USA Today and the NY Times. Please contribute!
If you receive a mailer that is not already fully described on this thread, please tell us the date you received it, the ticker of the stock promoted and its current share price, and the details in the disclaimer including the publisher, the payer, and the amount.
If you would like to add a few silly quotes from the mailer, please feel free. Those can be quite fun.
A mailer is a hard copy brochure or letter urging the recipient to invest in a particular stock. A paid mailer is one which has been paid for as described in the SEC required disclosure statement included with the mailer.
Over the years, my experience has showed that a paid mailer is a nearly infallible indicator of a 'pump and dump'. The mailer is the pump. The stock often rises at first. Over the next several months the stock price falls as the promoter who paid for the mailer repays himself several times over by selling stock into the buying precipitated by the mailer.
Mailers usually use plenty of exclamation points and hyperbolic language. They sometimes even ask what you will do with the profits you make investing in the stock.
Paid mailers are junk mail!!
I hope this becomes a useful tool for investors.