How to become a spam stock millionaire in 3 easy steps.
Inspired by this post at Useful Concept, I got to thinking about how you might be able to game the spam email system to your advantage. I’m still trying to work out all the details, but here’s a way that just might work to figure out if a spam stock is really a good buy, or if it’s just a dog.
Step 1: First you need to look at the average trading volume for the stock in question. What you are trying to determine is at what point in the spamming process did you receive the email. What you are looking for is a determination that your got the “tip” before most.
Step 2: If volume seems normal, then you’ll have to determine if it’s already started to climb upward. It’s possible that our crafty stock spammer isn’t trying to hit every in-box at once, instead slowly seeding the stock price. I would be hesitant if the stock has moved anywhere around 25% over the last few days while still maintaining normal volume.
Step 3: Now that you’ve isolated what the stock is doing you just need to do some looking into the company. Go get copies of the companies financial statements and use them to calculate earnings, revenue, cash flow or what ever else sort of valuation you need to determine the value of the company.
Come to think of it, you can skip steps 1 and 2 all together and just ride 3 all the way to the bank. Enjoy your millions, and don’t forget who your friends are.