next stop 4c+ !, page-60

Hi Bregitta

yes the pump you refer to happens mainly in penny stocks like RTL here where the company is essentially a shell with no viable business. In these cases you have to ask yourself who are the so called sophisticated inVestors who will take up the placement shares in a company that produces no income and pays no dividend. If you are a sensible sophisticated investor you wont touch it with a 50 foot pole.

However, if the penny stock offers incredible capital gain ( buy for 0.5c and its instantly worth 2.4c on the market) then that will entice the so called sophisticated investors. That is why these shares have to be pumped up so prior to massive placements to give value to the "sophisticated investors".

Hope this answers your question.