Strange outbound links- what am I seeing here??

spruitje

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I just came across a site that had some nice rankings but almost no backlinks, ofcourse I had to take a closer look to see what they had done.
On the homepage I saw that they had a number of intext links, with no meaningful anchor texts (completely random 8 words etc.) but when I took a closer look I saw that they were all in the following format:

Htp://homepage.com/"htp://wikipedia.org/randompage/"

Basically the first part was the site that I was on and then there was the second part which were all high pr/ high authority sites.
All these links gave a 404 error.

Can anyone shed some light on this? Is this meant to transfer authority or perhaps trustrank in the eyes of g00gle?
 
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