There are signs that you can always look out for before you invest in a company which is being improperly promoted:

Beware of any stock that you learn about on a bulletin board, chat room, newsgroup or email. Promoters usually use these to promote stock. Please see our article on Techniques Promoters use to Promote Online Investments for more information.

• Be on guard for high pressure tactics to buy from people you don't know. Promoters make their money from inflating the price of stocks in order to allow them and insiders to sell their cheap stock at higher prices. This is called pump and dump and it is a favourite tactic of promoters who are improperly promoting stock.

• Watch out for information that you see in online newsletters. Such information might appear to be unbiased and independent but usually such information is being provided by individuals paid to recommend the stock.

• Look out for information contained in publications that contain good investment information along with recommendations or stories about praiseworthy stocks. These publications are veiled attempts to advertise a company even though at their face the articles appear to be unbiased commentary when it fact the publishers have been paid to promote a stock.

• Beware of promises high profits and sales relating to products of a new startup company. It takes time for businesses to become successful and usually the path to success is a gradual increase and not an overnight success. Be realistic when reviewing promises made by companies.

• Never be fooled by press releases or announcements of pending or imminent acquisitions. Unless such acquisitions become reality, this is a warning sign that there is nothing behind the announcement but an attempt to fool you in buying a stock.

• If the company has weak fundamentals, then its low stock price is a reflection of what its worth and not what a promoter tells you its worth. Review the financials of a company and rely on only what you see and not on what you are promised.