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Strategies & Market Trends : IPO and Other Stock Plays
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From: MLD383/27/2007 1:01:07 PM
   of 13331
 
(OT) Manipulating low-float MicroCaps:

Cramer Comments Hurt Self, Image of Hedge Funds
March 26, 2007, By Jonathan Hoenig ( managing member at Capitalistpig Hedge Fund LLC )
smartmoney.com

Includes the following re Manipulating low-float MicroCaps :

..."And you don't need $15 million to $20 million to make a stock move. There are literally hundreds of low-float microcap stocks that anybody with a few thousands dollars and an Ameritrade account can jump.

Do you want to manipulate a stock? Go find a name with a $10 million market cap that trades fewer than a couple thousand shares a day. Put in an order to buy a few thousand dollars at the market and I'll guarantee you'll push it 5% to 10% higher. Or, perhaps even more effectively, simultaneously give both market orders as well as preplaced buy-stop orders to a few different brokers and you'll likely be able to push it even higher. From where I stand, there's nothing illegal in buying or selling a stock aggressively, even if it does move the price higher.

But nobody is bigger than the market. In trying to bully a stock up, one usually succeeds only in sinking a large chunk of money into a name at artificially high prices. After your heavy buying is done, what inevitably ends up happening is that you attempt to dump the shares and the stock quickly falls back to near or even below your purchase price. This is as true playing with $5,000 as it is with $5 million or even $500 million.

The nefarious conduct comes, in my opinion, when one crosses the line into deliberately spreading falsehoods either to reporters or the public at large in an attempt to push the market a certain way."...
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