Bill, re <<do German investors have a penchant for picking worthless companies and driving their stocks through the roof?>>
Bill, stocks like these aren't bought. They are sold.
So I would phrase it a bit differently:
American stock promoters have a penchant for selling worthless shares to unsuspecting foreigners without the protection of US securities laws.
The selling is done by paid analyst reports from the likes of Jenssen/Meyers, placements of stories in the many investing magazines here, etc.
So how does the stock go up through the roof? These hucksters have found that by getting their clients a second listing here in Germany they can drive the stock up. Buy some shares in the US to send over here, and naturally the buying drives up the price of the shares in the US. The Germans think this is great because they are buying something that is going up. They have their own online forums to hype it up, too. That's the pump stage, anyway. Eventually you get to the dump stage, too, as one can easily see with PNDA.
In addition to PNDA and TRBD, which you listed, you might add HEB, which I reviewed elsewhere: Message 5454883
and subsequent posts.
BTW, HEB hasn't fallen in the last few days as everything else has done. It's still in the pump stage. There are a lot of shares that are due to come out of lockout very soon, so I'm betting this situation won't last. |
