Investor Alert: MSC Warns of Aggressive Stock Promotion Exploiting COVID Recession Fears
FOR IMMEDIATE RELEASE
April 9, 2020
MSC Warns of Aggressive Stock Promotion Exploiting COVID Recession Fears
Winnipeg - The Manitoba Securities Commission (MSC) is issuing an investor alert warning the public to exercise extreme caution about aggressive promotion of Crestview Exploration Inc., a British Columbia gold mining company.
A mailing sent this week from a “stock analyst and geologist” to residents of Manitoba, Saskatchewan, B.C., and Alberta makes exaggerated claims about Crestview, predicting that its stock price “will soar as the recession hits.” The letter comes in an envelope, without a return address, that says in bold red letters, “CORONAVIRUS AFFECTING MARKETS: READ NOW.”
MSC has received several complaints about the letter in just a few days, which makes unsubstantiated and unrealistic claims concerning returns.
Crestview, listed on the Canadian Securities Exchange and the Frankfurt Stock Exchange, issued a statement April 8 stating that it was not responsible for the promotion, and said the letter contained “unfounded forward-looking statements.” The company urged investors and potential investors to verify any statements, and the source of such statements, contained in buy recommendations.
MSC strongly advises investors to exercise caution when considering aggressive promotions as a basis for investment decisions, as these promotions may make false claims of large profits and baseless stock price projections. Most aggressive stock promotions in recent years have been done through unsolicited email or social media, but promotions delivered through the mail carry the same risks.
“We’ve unfortunately seen a steep increase in marketing that exploits people’s anxiety about the pandemic and their investments,” says Jason Roy, Senior Investigator with the MSC. “Investors need to be extremely vigilant when making decisions in this environment.”
Anyone who is considering buying or selling an investment to do research or talk to their registered investment advisor to ensure it is an appropriate decision. For helpful, unbiased information on becoming a better informed investor, visit moneysmartmanitoba.ca
The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.
Jason Booth, Communications Coordinator, MSC | 204.945.1660 | email@example.com