Absolutely not. Pump-n-dumpers are fraudulent con-artists. There is a reason no one tries to pump-n-dump Ford, or GE, or Google...it's pretty much impossible. There are too many people watching those stocks and the volume traded would require tens of thousands, maybe millions of people to buy into the pumper's tale of great things to come. Instead, they promote penny-stocks with tiny floats that can be greatly influenced by the purchasing pattern of their following.
When you hear a pumper promoting a stock, it's easy to spot, usually. About a month before announcing the great find, the volume picks up a little bit. Trades happen more frequently: instead of once or twice a day having shares change hands, there are hundreds of shares, maybe thousands changing hands on an almost constant basis. This is when the pumper and his associates are buying up the stock. It also gives them the line that the stock is starting to trade more regularly, it's setting up a technical pattern to another stage higher, etc. Then when they announce the great find, they're selling, not buying.
It's a tough decision, but if you're looking for investing advice, stay away from the free newsletters. I'm even skeptical of the one's that charge a $400-500 annual fee (which seems to be the norm). I made the decision to go quality and outsource my stock research to PTTResearch. It's a chunk of change but it pays for itself, without question. Find them here: http://mbsy.co/6ftQv If nothing else, read the methodology reports you get even as a free subscriber (same quality analysis, just delayed a week or two).
There is nothing inherently illegal about promoting the stock of a business in order to bolster the price and foster confidence in the investment community. That's why CEO's are always appearing on CNBC and other media. When IPO's come out, the investment banker has a "road show" where they make presentations to analysts and others who can influence investors. Pump and dump involves some sort of deception, purposely inflating the potential of a stock way beyond reality, maybe throwing in some promises of big contracts of orders coming in that never materialize. And the pump is followed by selling of the stock by insiders at the higher price.
Nope - by definition, pumping and dumping is illegal since you pump by willfully passing on false information which artificially inflates the stock price. If you pass on information that is true, then you are not pumping.
Character is how we act when no one is watching (or we think no one is watching)
Be a pump and dumper and sooner or later you will lie to your "customer".
(but I would guess you can rationalize almost anything. Get elected to office and become a real con-man)
Like If you told them there is a risk in investing, and don't be surprised if you lose money?
