News & Media, page-626

Stop quoting *,

How the micro-cap sector is built on hot air

https://www.copyright link/business/how-the-microcap-sector-is-built-on-hot-air-20180904-h14xjc

I suggests people read the article above and how promotion websites work.

To quote from parts of the AFR article and I have some words bolded:

"Small companies are paying thousands of dollars a month to be spruiked to investors via paid content as a new breed of promoters cash in on traditional retail brokers exiting the space, a trend that has prompted increased regulatory action by the Australian Securities Exchange.

StocksDigital, a Melbourne-based firm, is offering a package that promises an "immediate effect on market", or what's known in the industry as a "sugar hit".

"As you have experienced, once these articles go live, clients see immediate effect on market," an email sent to a potential clients explained.


StocksDigital is one of about a dozen operators including *, Bulls N Bears and enduring online forum Hot Copper that are competing to promote micro and small cap stocks to retail investors. They are an increasingly important channel to help raise capital....."

........


"...ASX is very alert to promoters using various social and other media platforms to 'promote' or 'pump up' stocks to which they're connected. And we're also alive to the issue of 'independent' research funded by companies themselves...."