<re: registered analysts & brokerages have always pumped and dumped>
An alternative opinion (JMO) -- I don't see it as the same thing. Sure, the brokerages sometimes are seen as having an "agenda" in a stock, and their research can be slanted in that direction. But these are people who create legitimate value in their research and analyis (well, occasionally), are in most cases committed professionals who play by the rules - like committing their careers to the industry, building their reputations, etc.
Is that the same thing as having a 20-year old in your face, unsolicited, yelling at you in capital letters to buy his favorite piece of junk? I don't think so. That is the same thing as these "boiler room" guys who are incessantly calling me pumping their small-caps as an "investment opportunity" that I just can't live without. Usually, they are so aggressive they refuse to stop talking or to hang up, so I've taken to asking for their number so I can call them back "right away" and things like that (usually they refuse, and still refuse to stop talking/pumping their stock...). They, and the lower forms of their web-site brethen, are just the borderline criminals and hucksters of this industry. Not the same thing at all!
I offer this in the spirit of debate/opinion on the topic, not so much to disagree. I would find it hard to completely disagree with your point... obviously there is some major market manipulation conducted in most all stocks, on a routine basis, by the brokerage firms. Has been, always will be.
By the way, I should note (timely) it was brought to my attention today that the author/owner of "Trader's Faxline" (Florida), who writes a decent stock trade/OEX newsletter but who also (sideline) has been one of the notorious small-cap hucksters for the past nine years, has now had to close that down and move his operation to Spain, apparently to avoid the long arm of U.S. authorities. He has admitted receiving "payment for order flow" for his hyping of these small-caps... directly from the "management" of the companies involved.
Good trading, -Steve |
