Sunday, September 10, 2006

Giving Spam Attention Perpetuates It

The platinum rule when it comes to reducing spam is:

"Spam only exists because it works."

If it didn't work, it would die out quickly because no one would pay the spammers to propagate messages to the multitudes.

Why does spam work? Easy -- because it targets base human motives including vanity, lust, and greed. Those are the big 3, and they're not going away anytime soon.

However in a NYT business article Stocks Tips from Spam aren't Just Silly. They're Costly, Mark Hulbert provides an analysis of how spam works to inflate a stock's price in certain circumstances. The stock price of a targeted Pink Sheet company goes up during the peak of the spam initiative, then drops back down within a few days.

Look at this chart and guess when the spam sponsors bought and sold their shares. The perpetrators buy how and sell high basedon a predictable pattern; their "suckers" pay for the price lift up and take the loss when the stock price deflates.

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