Every day thousands of people receive in their email boxes stock recommendations from unknown senders. The fact that you are receiving the email should sound off your alarm bells and automatically make you reach for the delete button. We thought we should analyze a typical stock recommendation and point out the typical hallmarks of puffery of which you should be aware.

Here is an example of what we received recently: Here is the translation: This information is sent to members ONLY. If at any time you wish to unsubscribe please see the note at the bottom of this page. Members Only: This is quite important credible information that is available only to a select group. Stocks and Speculations for the serious micro-cap stock player. Serious: This recommendation is only for those who want to make money. December Stock Pick MICRO-CAP "GOLD/SILVER/ZINC/COPPER" EXPLORATION COMPANY'S STOCK STARTING TO 'MOVE' NOW. THIS STOCK COULD EASILY TRIPLE IN PRICE FROM ITS PRESENT PRICE OF AROUND 30c CANADIAN FOR THE SHORT TERM PLAYER. Exploration: This is an exploration company which means that they are looking gold, as opposed to having found anything. Easily triple: Trying to create excitement that now is the time to buy.Yes the stock could triple and also could easily plummet and sure will after the promoters pump and then dump it. Short term player: Trying to appeal to the investor who wants to make quick easy money. MUCH BETTER PRICE APPRECIATION IS EXPECTED FOR THE LONGER TERM INVESTOR WHO IS WILLING TO HOLD AS THE PROPERTY EXPLORATION AND DEVELOPMENT PLANS GO INTO EFFECT IN THE NEW YEAR Longer term investor: While we the promoters are dumping, you Mr. Investor should be holding on until, we the promoters are all out. Plans in effect in new year: Company starts looking for gold. “Looking” could take years especially given acres of farmland that has to be scoured. Name: N* Symbol: N* Exchange: Vancouver Stock Exchange (Canada) Vancouver Stock Exchange: Canadian junior mining exchange. Now called Canadian Venture Exchange. Reputation: plenty of manipulation and scammng. Not all bad but more dogs than your average kennel with only a few diamonds in the ruff that try to escape to the Toronto Stock Exchange if lucky. In the US beware of stocks that are listed on the Over-the-Counter Bulletin Board or traded in the Pink Sheets Some reasons why this stock should perform well: 1. This company's stock has never been promoted. It is our understanding the company is signing on with a P.R. firm to get its story in front of brokers and the public. 1. Once promoted, the stock will fly! 2. This stock has been sitting for almost two years with very little volume or price activity. 2. Reason for inactivity is that the stock is thinly traded and involves a shell company. Ready for easy manipulation. 3. This company has just announced a gold/silver/zinc/copper property acquisition in one of the most prolific mining areas of Mexico. 3. Read between the lines: property needs to be explored. This property probably is not one of the prolific mining sites. 4. A report has been written on this property by a prominent Canadian Consulting Geologist who did "on-site" inspection, research and sampling. He has recommended a two phase program that includes extensive drilling of the property. 4. Most prominent Geologists have to eat for a living and will assist any exploration company in recommending target sites. Does not mean anything unless concrete results found. 5. Management has considerable experience in mining and exploration with a combined total of about 120 years. 5. Doesn’t mean much if property is a dud. 6. Present price makes this stock a very attractive buy for the micro-cap stock player interested in short term gains. 6. Sounds easy and quick until you find that you are on the losing end. In light of the coming news and activity with the company this stock seems like an excellent buy at present prices up to approximately 65c for the serious small cap stock buyer. Nobody can predict what a stock price will do. Doing a little research on this stock might prove that the stock was as low at 3 or 4 cents, being the price at which the promoters loaded up on and now want to dump their stock. There are many examples in the past year of small Canadian mining stocks like N* that have gone from a few cents to several dollars in a short time frame. The secret to making money in these small stocks is to buy them early BEFORE they are promoted heavily to the public. Citing examples of other stocks has no bearing on what this stock will do, no more than citing Microsoft as an example of why every software company will do well. Buying early is correct since this is what the promoter does. By the time you buy the stock, the selling is starting. Summary: Name: N* Stock Symbol: N* Exchanges trades on: Vancouver Stock Exchange (Canada) Accumulate to 55c/65c (Canadian $) Summary: Do your own research. Look only at the facts and not the promotion and be prepared to lose everything.

Disclaimers

Most US stocks will have the following disclaimer attached under which the publisher of the recommendation will cover his back side. Here is a typical disclaimer that you should read carefully and our comments in the right hand column:

The information presented in this document is not to be construed as an offer to sell or a solicitation to buy any securities referred to herein Readers of this e-mail message, stock profile, are cautioned that small and micro-cap stocks are high risk investments and that some or all investment dollars can be lost. We suggest you consult a professional investment advisor before purchasing any stock. All information is received directly from the companies profiled and/or outside interviews conducted by our group of private investors. We recommend you use the information found here as an initial starting point for conducting your own research and conduct your own due diligence on the featured companies in order to determine your own personal opinion of the company before investing in these or any other companies. The Publisher assumes all information to be truthful and reliable; however, we cannot warrant or guarantee the accuracy of this information. All statements contained herein are deemed to be factual as of the date of this report and as such are subject to change without notice. The Publisher is not an Investment Advisor, Financial Planning Service or a Stock Brokerage Firm and in accordance with such is not offering investment advice or promoting any investment strategies. The Publisher is not offering securities for sale or solicitation of any offer to buy or sell securities. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. The Publisher was not paid to do an independent research on *. However, staff of The Publisher holds the right to buy and sell shares when they send out their research report. The Securities and Exchange Commission has compiled an extensive amount of information concerning online investing, including the inherent risks involved. We encourage our readers to visit the SEC's website to acquire this important information. Note the reference to high risk of buying a microcap. No reference to such risk in the recommendation. Heed the advice of contacting your own advisor and doing your own research. The Publisher was not paid. Instead it holds the right buy stock and sell stock. Translation: Not impartial and probably front trading. Buying stock at low prices and then using this report to pump the stock at prices where it can sell to make a profit. Safe Harbor Disclosure: The above profile contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of the featured company. As such, any statements contained herein or incorporated herein by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believe(s)", "anticipate(s)", "plan(s)", "expect(s)", "project(s)", "anticipate(s)" and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause actual events or actual results of the Companies profiled herein to differ materially from these indicated by such forward-looking statements. Forward-looking statements: Crystal balls are worth only the price of the glass they are made out of and not much more. Here are some other phrases in disclaimers that you will see that you should be aware of: “Company expects to move to either the American Stock Exchange or the Small Cap NASDAQ by mid year 2000” Remember forward looking statements. What the company expects and what will happen are two different things. Until it happens, don’t rely upon it. “The potential revenue and earnings projections in the development of these establishment centers is staggering", said Bill * , CEO. Potential means little if it doesn’t happen. Quote from CEO hardly impartial. “It's a great buy down at these prices, probably not to be seen again. “ Yes folks, the price might even go lower after you buy it. Don't be pressured into feeling you have to buy now or else. “From the due diligence that I have done, this is a winning situation.” Sure it is a winning situation for the promoter. He will make money at your expense. “This high-tech company is great buy. A final thought: Business-to-Business e-commerce alone is expected to grow from $43 billion dollars in 1998 to $1.3 trillion dollars in 2003.” The classic halo effect. Let us look at how the industry is doing and then imply that this company will do as well. That is like saying that Microsoft has done very well in the operating system business therefore any company in that business will do well. Not! “The next quarterly report, due out in a matter of days(09-02-00) is also said to be profitable, with an "earnings surprise" likely. If this were correct then the promoter is aware of insider information will he is not permitted to disclose. The only earnings surprise will be a loss.

If you come across any stock recommendation that you want us to look at, send it to us.

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