Investing via eMail: WHKA

It’s Friday morning and I’m going to take a look at one of those “awesome” stock tips that just fell into my inbox.

This one is for WHKA - World Hockey Association Corp.

WHKA - HOT YEAR END GEM!

WORLD HOCKY ASSOCIATION’S

Symbol: WHKA
Price: $0.015
5-day Target: $0.09
Rating: Strong Buy

WATCH WHKA EXPLODE IT ON FRIDAY DEC 29!

Wow! It’s going to explode, today!!!

The first thing we do is take a look at Yahoo Finance and see what we can learn about this stock.

Hmmm…

It’s 52 week range is $0.01 to $2.00! So, a stock that traded at $2.00 per share in the past and is now worth a little over a penny a share. What the heck did this company do to itself to cause such a massive devaluation of itself?

How does going from $2.00 to $0.15 to $0.09 constitute an explosion? This looks more like an imploding stock to me!

The last time this stock was above $1.00 per share was June 29, 2006. On December 1, 2006 the stock went from $0.39 to $0.01 per share! What happened on that day?

What I believe is that someone recently purchased a ton of shares in this stock at a cut-rate price. This stock has been very active in trading recently with transactions with over 1 million shares going through.

I would stand clear of this stock.

For your reading pleasure I present this article. I will present the headline and first two paragraphs:

Global Developments Cancels World Hockey Association Dividend and Commences Legal Inquiry Into Issuance of Stock

VANCOUVER, BC–(MARKET WIRE)–Dec 22, 2006 — Global Developments Inc. (Other OTC:GBDP.PK - News) announces that it has cancelled its previously announced dividend of its holdings in World Hockey Association common stock and postponed it until further notice. Due to the significant decrease in the market value of the common stock of World Hockey Association (Other OTC:WHKA.PK - News), the proposed dividend became uneconomical with respect to the cost of notice and delivery to Global’s shareholders.

Global has since learned that the management of World Hockey Association, commencing sometime during November 2006, began issuing large amounts of common stock. From November 2006 to December 12, 2006, the number of issued and outstanding shares increased from approximately 32,000,000 common shares issued and outstanding to 157,854,076 common shares issued and outstanding, the majority of which were issued to insiders and management.

Oh my, Talk about insider trading!

This just goes to show you, the stock offer you get in your email is probably too good to be true.

Posted by Scammer Sam

10 Comments

Investing via eMail: GCME

If you are like me you probably get a large amount of junk email.

Recently I’ve been getting a large amount of junk email giving me stock tips. Stocks are one of those things you need to be very wary of in regards to getting email tips about.

Michael says: GCME Huge News Release Expected Before Years End!

Ring In The New Year With Cash!

GCME is fast becoming a major player in the foreign film market. With continuing mergers and joint ventures with the industries most influential corporations.

Company: Greater China Media & Entertainment Corp.
Symbol: GCME
Price: $0.70
Status: BUY ALERT
5 Day Target: $1.45

Right now it is at $0.70. We have seen consistent price jumps following news releases and we have been told to expect big news before the end of the year. Look at the price patterns, see the spikes and the steady climb for yourself. Now is the time, grab GCME first thing Tuesday Morning.

This one arrived in my inbox this very morning.

Let’s see what we can find out about this particular company…

According to Yahoo Finance this company’s stock history only goes as far back as September when it was trading in the $1.30 range.

Their 52 week high/low is: 0.53 - 2.19.

On Dec 14, 2006 the stock was just shy of $1.00 and it has since fallen 30 cents to it’s current price of $0.70.

UPDATE
As of 3:10PM EST the stock is now up to $1.01.

UPDATE 2
Looking over the transactions that occurred it looks like a pump and dump operation.

When the stock opened it’s last trade was at $0.70 but the only offer to sell was $1.01. The first trade at that price was small (250 shares) and once that trade went through the stock price jumped to $1.01!

There were a few large (+/- 30K shares) later in the day at about $1 per share so someone may have gotten burned on this one.

A very important thing to understand about stocks is that the current share price is not the price you will likely buy or sell the stock at. Instead, you have to make an offer and tell how many shares you want to buy or sell.

If you want to buy shares now you might want to put out a number of small bids with a bid price above the current stock price. when selling you want to offer a price a little bit under the current share price. That advice is for when you NEED to buy or sell.

If you are investing for the long haul than you want to place buy/sell orders at a price you feel comfortable with, which is likely to be the opposite of what is stated above.

Posted by Scammer Sam

1 Comment