To All Re: MM's and Short Sellers Strategy (from RB)
By: JesseLivermore
Reply To: None Thursday, 29 Jul 1999 at 6:58 PM EDT
Post # of 57365
Message to the board from an friend who will remain anonymous....
Dear Jesse;
My observation of the RB WAVX board of late is that the long term holders of WAVX have lost perspective and control. This is causing a significant problem in that the Market Makers are manipulating the psyche of these
holders.
It is my view that the attack has been structured since prior to relisting to accomplish this. Unlike may traded stocks, WAVX has a significant amount of shares in the hands of relatively unsophisticated (in the SEC version of the term) investors. I would guess at re-listing many many
millions of shares were in the hands of these players. They purchased them in the pennies and low dollars and held a big chunk of the company. If you couple this with the rise of RB as a forum and WAVX as one of the first and
most dominant board they have grown into a unique position of controlling a significant portion of this company in an active public forum.
Now if I was a Market Maker and I was looking to get shares in this rising star company I have a situation that is ripe for the picking. I can attack the psychological base of the major shareholders of the stock and gauge
almost immediately the reaction of the shareholders. And this, in my opinion, is exactly what is going on. You and I both know that coordinated attacks by the houses is a regular occurrence and well within the rules of engagement so to speak.
So here is what has and is happening, They are manipulating the price in a manner to effect the psyche of the shareholders who own the majority of shares, and have succeeded in shaking many lose. They drop the price then
let it recover then slap it down again in a repeating pattern. And they are getting instant feedback through the RB board. Few, if any, other stocks are susceptible to this.
Since the latest attack Monday many of the long shares hove either sold out or taken profits. The good news is there appears to be little to gain from further psychological and price actions. Not much left to fall out as evident but the lack of panic selling in the face of some aggressive price drops this morning.
Another point! It is my observation that the short interest that is consuming the majority of posters is simply a smoke screen for the true play and these players are naive in it's continuing consideration.
The danger to WAVX at this point is the remaining large block holders. If they continue to show panic and consumption by the concern over the shorts the MMs will continue to get these cheap shares. Face it, that is
exactly what you and I would do should we command such power.
I trust you will understand my need not to have my identity disclosed. Feel free to share this analysis with others if you feel it will help them understand.
Fortunately I think the largest battles are near over at
this point, but unfortunately for many of these truly lucky individuals who found WAVX and RB at the right time, they have already suffered their casualty and lost their shares to the Smart Money players. It is a shame that it is so easy to see the emotionality of such a large block of shares held in the hands of the nice amateur traders on the RB WAVX board.
You know who!
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