Robert Caines had a sick sense of déjà vu when he spotted an article on the internet hyping shares in mining exploration company Graycliff Exploration Ltd.
According to The Financial News website, Toronto-based Graycliff, which trades on the Canadian Securities Exchange (CSE), was sitting on $500-million worth of gold reserves, and its stock was set to skyrocket by 800 per cent.
The post on Graycliff was almost identically worded to one Mr. Caines saw in February that had motivated him and his father-in-law to buy shares in Crestview Exploration Inc., another CSE-listed stock. After they had held Crestview for a few weeks, the stock crashed for no apparent reason.
“All of a sudden, around 10:30 that day, it just dropped from $2.45 to $1.30 in a matter of 10 minutes. ‘Oh my God, how can this go down so much,’” Mr. Caines said.
He now believes he bought shares in a company that was the target of a “pump and dump.” In such schemes, scammers acquire shares in a thinly traded stock, then spread false information that pumps up the price and trading volume.
For the rest of this article: https://www.theglobeandmail.com/business/article-shady-promotion-campaigns-causing-mayhem-in-cse-mining-stocks/