Saturday, May 21, 2011

Mega Precious Metals

I posted a video earlier this week, The Truth About College, which was created by an organization called the NIA (National Inflation Association).

The following day, Wednesday May 18, they sent out an email recommending a stock called Mega Precious Metals (MGP).

This weekend Peter Schiff, president of Euro Pacific Capital, sent out a video blog claiming this recommendation was a pump and dump.  For those unfamiliar with the term pump and dump, it means that a small group recommends to a large audience that they purchase a stock that has very little volume and usually has very little worth.

The new buyers push the low volume stock higher, and the insiders recommending the purchase then dump all their shares at a large profit.  This was the story behind the movie "Boiler Room," and was commonplace during the late 1990's stock market bubble.

I have not done any research on the company so I cannot say for certain that is the case with this stock.  However, I have sent out multiple videos created by the NIA (I agree with their basic view of economics and I enjoy being able to provide a video format to discussions) so I wanted readers to be aware if they were to have signed up for any of their services.  I also trust Peter Schiff.

In addition, I would like to remind readers of this site while we are on the topic that I do not get paid any compensation for this website in any form. (Other than the enjoyment of writing it)

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