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Saturday, 14 September 2013

Alanco Technologies Inc (ALAN) pump-and-dump spam run

Alanco Technologies Inc is an Arizona-based firm found in 1969 that used to be active in several technology markets, but over recent years it has divested itself of those assets and its primary business activities are now in the business of waste water disposal. The company does not make a profit (and indeed in some recent years made no direct income whatsoever). The bulk of its financial assets are tied up in a company called ORBCOMM. Alanco categorises itself as a high risk venture (see page 4 of this filing). Although the market capitlisation is $3.2m, the value of the enterprise itself is just $1.4m.

There are no apparent newsworthy events going on with this firm, however starting after the close of trading on Friday 13th September, a large scale pump-and-dump spam run started to promote the stock. There have been several other recent pump-and-dump spam runs similar to this, pushed out by the Kelihos botnet on behalf of parties unknown.

The stock price of ALAN has not done well over the past 12 months:

Share trading is sporadic, but a recent sustained burst of share trading of around 96,000 shares pushed the price up from around $0.45 to $0.62, perhaps costing around $50,000 or so. Analysis of previous recent pump-and-dump spam runs indicates that this may well the the spammers themselves taking up a position in the company.

It's a characteristic of this type of pump-and-dump spam that the spam emails start almost immediately after trading closes, probably to try to persuade people to put in automated buys on Monday morning when the scammers will try to offload stock at an inflated price. Here are some of the spams being sent:

Subject: We release the Titan!
Was A Bust Today! This Company is Our Private Pick!!!

To buy: A_L A-N
Last Trade: $.6399
Target Price: $3.55
Trading Date: September, 16th

Our Watchlist was a WINNER! It Will Be Featured In The Wall Street
Journal Tomorrow.

Subject: We Were on The Money with This Stock
I would love it to fill in gap... I hope you own it!!!

Stock: A L A-N
At this time: $0.64
Long Term Target: $1.90
Date: Mon, Sep 16th, 2013

It Speaks For Itself. No Better Way To Kickstart This Week! CORRECTION!

Subject: Most Active
Online Trading Account!!! This Company Looks Ready To Bounce!

Stock Symbol: ALA_N
Currently traded: .6399
Target: $1.90
Trade Date: Mon, September 16th, 2013

It is going to make you happy smile!!! I hope you own it.

Subject: Your stock
This Stock Could Make A Huge Come Back! Small Cap Source.

Sym: AL_AN
Current Price: $.6399
Company: Alanco Technologies, Inc.
Long Term Target Price: $1.20
Trade Date: Sep 16th

Call your Broker Directly to Place an Order. It is Showing
signs of a break out!

Subject: It is Showing signs of a break out
Are you watching this? This stock is very fast becoming one of our

Symbol traded: A L_AN
Latest Pricing: .6399
Short Term Target: 2.65
Trade Date: Mon, September 16th, 2013

This Company Shows Gains!!! It could be the next 10x winner!

Subject: This Company Could be Acquisition Target
you need to buy this.

Symbol to buy: A LA N
Closed at: $0.64
Name: Alanco Technologies, Corp.
Target: $2.50
Trading Date: Monday, Sep 16th, 2013

More Momentum Coming!!! What an amazing day!!!

Subject: Just a few minutes left to buy it before the end of the day!
A New Bonus Technical Report Tomorrow @ the Market Open!!! Shocking
Discovery Revealed Tomorrow!

Stock Symbol: A_LA N
Latest Pricing: $0.6399
Long Term Target: $3.80
Trading Date: September 16

Don`t Miss this Easy One. It is ready to explode in price and volume!!!

Subject: My new #1 pick!
This Stock Runs to Gain this Morning! We Want More! Details Inside!
This Company just released HUGE news!

To buy: A LA N
Today Price: $0.64
Name: Alanco Technologies, Corp
Target: 1.20
Date: Mon, September 16

Expect a new rally! This Company Moves Forward.
So.. just how do these pump-and-dump advertised stocks run? The answer is.. badly. Recently promoted stock MONK fell from around $0.23 to $0.047 (an 80% loss), BLDW has been rather flat overall going from $0.044 to $0.048 (a 9% increase), HAIR dropped from $0.36 to $0.0378 (a 90% loss) and NOST from $0.0074 to $0.0030 (a 59% loss). So if you are tempted to follow the spam and buy ALAN, then these recent figures would indicate that it's highly risky with a limited chance of reward.


Paul Moore said...

I have an idea what the SEC and markets should do when this happens. Suspend trading in the stock for 2-3 days immediately after the spams start coming out. That way those who are gullible enough to invest cannot and will not lose their money. After a few days they will realize what happens and will not invest. they will also ignore the rest of the spams that come out. (Like I do, except for entertainment)

As for those who spammers bought the stock trying to make a killing, after a few times like this when they lose their shirt, they hopefully will give up on this game. Unfortunately, they will come up with another scheme.

Jan said...

This new campaign is coming in, but extremely low volume so far compared to the run rates for things like MONK & BLDW.

Almost as many NDR hits as real ones.

Wonder if this spammer progresses alphabetically through his list, in which case it should pick up after he reaches us :-\