Every now & again I’d get e-mail offers asking whether I wanted to take advantage of a special chance to buy shares in ‘crackpot technologies’ before everyone else.
Generally if you then tracked that share it would start trading, perhaps rise briefly before plummeting without a trace.
Pump & dump. Classic scammer activity.
@ the OP – sounds like your friends are investing in AIM-listed stocks, and most likely natural resources-focused ones. There’s been a plethora of them doing quite well recently – Rockhopper, Xcite Energy, Desire (although it’s been up and down heavily), Victoria Oil & Gas and Beowulf to name a few. And on that evidence it’s easy to be drawn in to what seems like “easy” money, but these are incredibly volatile stocks and you need to be prepared to lose all your money if the speculation ramping up the prices doesn’t come true when the company issues an official statement. “Shares can fall as well as rise and you may get less back than you invested” is is every uk stockbroker’s T&Cs somewhere.
If your risk appetite is such that you’re happy at the possibility of losing everything invested for the propect of triple digit percentage gains, then go for it. The message boards of http://www.lse.co.uk can be a source of inspiration aswell as those on iii, although you have to work out which posters are ramping up the share price for their gain (see pump & dump above) and which are giving real insight.
Personally, the majority of my portfolio is made up of “safer” mutual funds, with the odd speculative £1k in dodgy AIM stocks when I see an opportunity.