Agoracom Blog

We Are Now In Pump and Dump 2.0 – And It’s Bigger Than Ever

Posted by AGORACOM at 5:46 PM on Thursday, January 7th, 2010

My friend and respected colleague, Timothy Sykes, tweeted this earlier today:

ECOB Sykes

That tweet triggered a post I had seen the day before from Cameron Fous who I’ve been following for some time really and seems to have a lot of success – almost too much success for my comfort – but there is no denying he is generating some great returns.


In fact, I was considering using this as my first ever Fous trade but it was already at $0.74 and I figured the fast money had been made.  Boy was I wrong, as the stock rocketed over $1 on huge volume.  Obviously, this is one massive promotion so I quickly checked Google and Twitter to see what part they are playing in the matter.   First, I punched “ECOB” into Google.  Look at how many promoters are working on the deal!


Then I searched ECOB on Twitter.  Again, the number of newsletter types is simply staggering:

ECOB Twitter

Folks, we are officially in Pump and Dump 2.0.  The difference is that promoters are being far less intrusive.  I’m not seeing promotions role into my fax machine and Inbox.  Rather, they’re using search engines and Tweets (plus other tools I didn’t take the time to look up) – both of which require the investor to act (searching or subscribing) in order to be part of the promotion.

This leads me to believe that investors are actually choosing to become a part of the promotion – which is more like a flash pyramid scheme – and they are OK with it.  Did it work?  Take a look at the chart below.  Will it work for long?  I think Pump and Dump 2.0 has legs and will be with us for a while.  It’s fast money and it works.  Not everyone will win – but gamblers and speculators don’t expect to win every time. They just need the action and some wins along the way.

The best part is that guys like Timothy Sykes are actually feasting off these promotions/pyramids by shorting them once they inevitably burn out.  Tim hates the promoters – and they probably hate him – but the fact of the matter is they’ve created this twisted promo-to-short ecosystem that rely on each other.

Tim, I hope you can weigh in here with some thoughts.  Here’s the chart.  Wild stuff.

ECOB Chart



One Response to “We Are Now In Pump and Dump 2.0 – And It’s Bigger Than Ever”

  1. Bebe Matasinni says:

    Your investigation into this matter must start from one premise that no liquidity exists to either push shares up on hype and then furthermore have excess to borrow sykes in order to short the stocks first makes a deal with these money laundering garbage companies to use his other shell promoters to hype it as it takes no genius to track trading volume whereupon once enough fish have been sucked in by same entity driving shares up in a greespanian “measured” pace then sykes in accordance with said compâny execs sell short their own worthless shares essentially- so where liquidity is concerned Sykes giveth and sykes taketh

    but all tom foolery aside i think he serves greedy degenerate entrants into the investing community a wonderful experience of avoiding a greater evil should occur that these same sheep experience instead gamblers first time success- the shellacking sykes pains these suckers with either forces them to analyze what they did wrong and go straight or end up living under a bridge