Manipulation des stocks par les MM. Cet article est très instructif sur la façon dont les MM's manipulent les transactions.
Quant à Nesbitt, ils agissent en pépère, du moins à Sherbrooke. J'en ai eu plusieurs fois la preuve. On dirait qu'ils n'y a que de gros stocks avec eux. Ils font des ordres au marché pour des stocks du type DELL, CSCO, etc. mais quand on arrive et on veut transiger très rapidement un stock pour une passe rapide, ils ont un doigt dans le nez et l'autre dans le c...!
Armand
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info about stock manipulation.....
This is for informational purposes only...... does not imply
anything with this stock use the information as you see fit too
or dont use it.
info on how pump n dumps are done..
George Chelekis' HOT STOCKS REVIEW ## Copyright 1996
HOT STOCKS CONFIDENTIAL ESSAY
By George Chelekis * April 21, 1996
TEL: (813) 251-0030 * FAX: (813) 254-4677
NOTE: I believe this may be one of the most important essays on
the financial markets which you will ever read. This essay will
be the lead article in Hot Stocks Review, Spring 1996 (Part Two).
Up until recently, I knew that I was missing something, but I
could not quite put my finger on it. Now I know what it is. The
data which follows is only as good as you can actually use it.
These are the cold, savage and ruthless facts of market
manipulation. I have not made these up, but have dug them up out
of out-dated, generally unavailable books on Canadian market
manipulations, and pieced the rest together from observations,
personal experiences and conversations with market professionals
and insiders. While the books are out of date, the manipulations
have been passed down from one generation to another. The only
thing missing was someone
to supply you with what those tricks were so you can become a
more educated speculator. Many thanks to Robert Shore and Vern
Flannery, of Market News Publishing, for finding and sending me a
copy of the book, "The Story Behind Canadian Mining Speculation"
by T. H. Mitchell, first published in 1957 by George J. McLeod
Limited; also Ivan Shaffer's book, "The Stock Promotion Game." I
have been told that many of these tricks are now illegal. If so,
would someone please tell that to the market manipulators.
THE DEADLY ART OF STOCK MANIPULATION....
In every profession, there are probably a dozen or two major
rules. Knowing them cold is what separates the professional from
the
amateur. Not knowing them at all? Well, let's put it this way:
How safe would you feel if you suddenly found yourself piloting
(solo) a Boeing 747 as it were landing on an airstrip? Unless you
are a professional pilot, you would probably be frightened out of
your wits and would soil your underwear. Hold that thought as you
read this essay because I will explain to you how market
manipulation works.
In order to successfully speculate, one should presume the
following: THE SMALL CAP STOCK MARKETS PRIMARILY EXIST TO FLEECE
YOU! I'm talking about Vancouver, Alberta, the Canadian Dealing
Network and the US Over-the Counter markets (Pink Sheets,
Bulletin Board, etc.). One could also stretch this, with many
stocks, to include the world's senior stock markets, including
Toronto, New York, NASDAQ, London, etc. The average investor or
speculator is not very likely to have much success in the small
cap crapshoots. I guess
that is what attracted ME to these markets. I have been trying,
for quite some time, to answer this question, "How come?" Now, I
know. And you should, too!
By the way, the premise of these books is uniformly: "While these
speculative companies do not actually make any money, one can
profit by speculating in these companies." THAT is the premise on
how these markets are run, by both the stock promoters, insiders,
brokers, analysts and others in this industry. That logic is
flawed in that it presumes "someone else" is going to end up
holding the dirty bag. Follow this premise all the way through
and you will realize the insane conclusion: For these markets to
continue along that route, new suckers have to continue coming
into the marketplace. The conclusion is insane in that such mad
activity can only be short-lived. I disagree with this premise
and propose another solution (see my earlier essay: A Modest
Proposal) at the end of this essay.
What the professionals and the securities regulators know and
understand, which the rest of us do not, is this.
"RULE NUMBER ONE: ALL SHARP PRICE MOVEMENTS -- WHETHER UP OR DOWN
-- ARE THE RESULT OF ONE OR MORE (USUALLY A GROUP OF)
PROFESSIONALS MANIPULATING THE SHARE PRICE."
This should explain why a mining company finds something good and
"nothing happens" or the stock goes down. At the same time, for
NO apparent reason, a stock suddenly takes off for the sky! On
little volume! Someone is manipulating that stock, often with an
unfounded rumor.
In order to make these market manipulations work, the
professionals assume: (a) The Public is STUPID and (b) The Public
will mainly buy at the HIGH and (c) The Public will sell at the
LOW. Therefore, as long as the market manipulator can run crowd
control, he can be successful.
Let's face it: The reason you speculate in such markets is that
you are greedy AND optimistic. You believe in a better tomorrow
and
NEED to make money quickly. It is this sentiment which is
exploited by the market manipulator. He controls YOUR greed and
fear about a particular stock. If he wants you to buy, the
company's prospects look like the next Microsoft. If the
manipulator wants you to desert the sinking ship, he suddenly
becomes very guarded in his remarks about the company, isn't
around to glowingly answer questions about the company and/or
GETS issued very bad news about the company. Which brings us to
the next important rule.
"RULE NUMBER TWO: IF THE MARKET MANIPULATOR WANTS TO DISTRIBUTE
(DUMP) HIS SHARES, HE WILL START A GOOD NEWS PROMOTIONAL
CAMPAIGN."
Ever wonder why a particular company is made to look like the
greatest thing since sliced bread? That sentiment is
manufactured. Newsletter writers are hired -- either secretly or
not -- to cheerlead a stock. PR firms are hired and let loose
upon an unsuspecting public. Contracts to appear on radio talk
shows are signed and implemented. Stockbrokers get "cheap" stock
to recommend the company to their "book" (that means YOU, the
client in his book). An advertising campaign is rolled out
(television ads, newspaper ads, card deck mailings). The company
signs up to exhibit at "investment conferences" and "gold shows"
(mainly so they can get a little "podium time" to hype you on
their stock and tell you how "their company is really different"
and "not a stock promotion.") Funny little "hype" messages are
posted on Internet newsgroups by the same cast of usual suspects.
The more, the merrier. And a little "juice" can go a long way
toward running up the stock price.
The HYPE is on. The more clever a stock promoter, the better his
knowledge of the advertising business. Little gimmicks like
"positioning" are used. Example: Make a completely unknown
company look warm and fuzzy and appealing to you by comparing it
to a recent success story, Diamond Fields or Bre-X Minerals. That
is the POSITIONING gospel, authored by Ries and Trout (famous for
"Avis: We Want To Be #1" and "We Try Harder" and other such
slogans). These advertising/PR executives must have stumbled onto
this formula after losing their shirts speculating in a few
Canadian stock promotions! The only reason you have been invited
to this seemingly incredible banquet is that YOU are the main
course. After the market manipulator has suckered you into "his
investment," exchanging HIS paper for YOUR cash, the walls begin
to close in on you. Why is that?
"RULE NUMBER THREE: AS SOON AS THE MARKET MANIPULATOR HAS
COMPLETED HIS DISTRIBUTION (DUMPING) OF SHARES, HE WILL START A
BAD NEWS OR NO NEWS CAMPAIGN."
Your favorite home-run stock has just stalled or retreated a bit
from its high. Suddenly, there is a news VACUUM. Either NO news
or BAD rumors. I discovered this with quite a few stocks. I would
get LOADS of information and "hot tips." All of a sudden, my
pipeline was shut-off. Some companies would even issue a news
release CONDEMNING me ("We don't need 'that kind of hype'
referring to me!). Cute, huh? When the company wanted fantastic
hype circulated hither and yon, there would be someone there to
spoon-feed me. The second the distribution phase was
DONE....ooops! Sorry, no more news. Or, "I'm sorry. He's not in
the office." Or, "He won't be back until Monday."
The really slick market manipulators would even seed the Internet
news groups or other journalists to plant negative stories about
that company. Or start a propaganda campaign of negative rumors
on all available communication vehicles. Even hiring a
"contrarian" or "special PR firm" to drive down the price. Even
hiring someone to attack the guy who had earlier written
glowingly about the company. (This is not a game for the
faint-hearted!)
You'll also see the stock drifting endlessly. You may even
experience a helpless feeling, as if you were floating in outer
space without a lifeline. That is exactly HOW the market
manipulator wants you to feel. See Rule Number Five below. He may
also be doing this to avoid the severe disappointment of a "dry
hole" or a "failed deal." You'll hear that oft-cried refrain, "Oh
well, that's the junior minerals exploration business... very
risky!" Or the oft-quoted statistic, "Nine out of 10 businesses
fail each year and this IS a Venture Capital Startup stock
exchange." Don't think it wasn't contrived. If a geologist at a
junior mining company wasn't optimistic and rosy in his promise
of exploration success, he would be replaced by someone who was!
Ditto for the high-tech deal, in a world awash with PhD's.
So, how do you know when you are being taken? Look again at Rule
#1. Inside that rule, a few other rules unfold which explain how
a stock price is manipulated.
"RULE NUMBER FOUR: ANY STOCK THAT TRADES HUGE VOLUME AT HIGHER
PRICES SIGNALS THE DISTRIBUTION PHASE."
When there was less volume, the price was lower. Professionals
were accumulating. After the price runs, the volume increases.
The professionals bought low and sold high. The amateurs bought
high (and will soon enough sell low). In older books about market
manipulation and stock promotion, which I've recently studied,
the markup price referred to THREE times higher than the floor.
The floor is the launchpad for the stock. For example, if one
looks at the stock price and finds a steady flatline on the
stock's chart of around 10 cents, then that range is the FLOOR.
Basically, the markup phase can go as high as the market
manipulator is capable of taking it. From my observations, a good
markup should be able to run about five to ten times higher than
the floor, with six to seven being common. The market manipulator
will do everything in his power to keep you OUT OF THE STOCK
until the share price has been marked up by at least two-three
times, sometimes resorting to "shaking you out" until after he
has accumulated enough shares. Once the markup has begun, the
stock chart will show you one or more spikes in the volume -- all
at much higher prices (marked up by the manipulator, of course).
That is DISTRIBUTION and nothing else.
Example: Look at Software Control Systems (Alberta:XVN), in which
I purchased shares after it had been marked up five times. There
were eight days of 500,000 (plus) shares trading hands, with one
day of 750,000 shares trading hands. Market manipulator(s)
dumping shares into the volume at higher prices. WHENEVER you see
HUGE volume after the stock has risen on a 75 degree angle, the
distribution phase has started and you are likely to be buying in
-- at or near the stock's peak price.
Example: Look at Diamond Fields (TSE:DFR), which never increased
at a 75 degree angle and did not have abnormal volume spikes, yet
in less than two years ran from C$4 to C$160/share.
Example: Look at Bre-X Minerals (Alberta:BXM), which did not
experience its first 75 degree angle, with huge volume until July
14th, 1995. The next two trading days, BXM went down and stayed
around C$12/share for two weeks. The volume had been 60% higher
nearly a month earlier, with only a slight price increase. Each
high volume and spectacular increase in BXM's share price was met
with a price retreat and leveling off. "Suddenly," BXM wasn't
trading at C$2/share; it was at C$170/share.... up 8500% in less
than a year!
In both of the above cases, major Canadian newspapers ran
extremely negative stories about both companies, at one time or
another. In each instance, just before another share price run
up, retail investors fled the stock! Just before both began yet
another run up! Successful short-term speculators generally exit
any stock run up when the volume soars; amateurs get greedy and
buy at those points.
"RULE NUMBER FIVE: THE MARKET MANIPULATOR WILL ALWAYS TRY TO GET
YOU TO BUY AT THE HIGHEST, AND SELL
AT THE LOWEST PRICE POSSIBLE."
Just as the manipulator will use every available means to invite
you to "the party," he will savagely and brutally drive you away
from "his stock" when he has fleeced you. The first falsehood you
assume is that the stock promoter WANTS you to make a bundle by
investing in his company. So begins a string of lies that run for
as long as your stomach can take it.
You will get the first clue that "you have been had" when the
stock stalls at the higher level. Somehow, it ran out of steam
and you are not sure why. Well, it ran out of steam because the
market manipulator stopped running it up. It's over inflated and
he can't convince more people to buy. The volume dries up while
the share price seems to stall. LOOK AT THE TRADING VOLUME, NOT
THE SHARE PRICE! When earlier, there may have been 500,000 shares
trading each day for eight out of 12 trading days (as in the case
of Software Control Systems), now the volume has slipped to
100,000 shares (or so) daily. There are some buyers there, enough
for the manipulator to continue dumping his paper, but only so
long as he can enlist one or more individuals/services to bang
his drum.
He may continue feeding the promo guys a string of "promises" and
"good news down the road." (Believe me, this HAS happened to me!)
But, when the news finally arrives, the stock price goes THUD!
This is entirely orchestrated by a market manipulator. You'll see
it in the trading volume, most of which is CONTRIVED. A market
manipulator will have various brokers buying and selling the
stock to give the APPEARANCE of increasing volume and price so
that YOU do start chasing it higher.
At some point during the stall stage, investors get fed up with
the non-performance of the stock. It drifts for a while, in a
steady retreat, with perhaps a short-lived spike in price and
volume (the final signal that the manipulator has finally
offloaded ALL of his paper). Then, the stock comes tumbling down
-- having lost ALL of the earlier share appreciation.
Sometimes, with the more cruel manipulators, they will throw in a
little false hope... giving you a little more rope so they can
better hang you. Just after a severe drop, there will be a
"bottom fishing" announcement which sends the share price up a
bit on high volume, rises a little more after that and then
continues to drift. Meanwhile, you keep getting "shaken out"
through a cruel drip-drip water torture of the share price's slow
retreat. Again, virtually every movement is completely
orchestrated.
"RULE NUMBER SIX: IF THIS IS A REAL DEAL, THEN YOU ARE LIKELY TO
BE THE LAST PERSON TO BE NOTIFIED OR WILL BE
DRIVEN OUT AT THE LOWER PRICES."
Like Jesse Livermore wrote, "If there's some easy money lying
around, no one is going to force it into your pocket." The same
concept can be more clearly understood by watching the tape. When
a market manipulator wants you into his stock, you will hear LOUD
noises of stock promotion and hype. If you are "in the loop," you
will be bombarded from many directions. Similarly, if he wants
you out of the stock, then there will be orchestrated rumors
being circulated, rapid-fired at you again from many directions.
Just as good news may come to you in waves, so will bad news.
You will see evidence of a VERY sharp drop in the share price
with HUGE volume. That is you and your buddies running for the
exits. If the deal is really for real, the market manipulator
wants to get ALL OF YOUR SHARES or as many as he can... and at
the lowest price he can. Whereas before, he wanted you IN his
market, so he could dump his shares to you at a higher price, NOW
when he sees that this deal IS for real, he wants to pay as
little as possible for those same shares... YOUR shares which he
wants to you part with, as quickly as possible.
The market manipulator will shake you out by DRIVING the price as
low as he can. Just as in the "accumulation" stage, he wants to
keep everything as quiet as possible so he can snap up as many of
the shares for himself, he will NOW turn down, or even turn off,
the volume so he can repeat the accumulation phase.
In the mining business, there seems to always be another "area
play" around the corner. Just as Voisey's Bay drifted into
oblivion, during the fourth quarter of 1995 and early into 1996,
the same Voisey Bay "wannabees" began striking deals in
Indonesia. Some even used new corporate entities. Same crooks,
different shingles. The accumulation phase was TOP SECRET. The
noise level was deadingly silent. As soon as the insiders
accumulated all their shares, they let YOU in on the secret.
"RULE NUMBER SEVEN: CONVERSELY, YOU WILL OFTEN BE THE LAST TO
KNOW WHEN THIS DEAL SHOWS SIGNS OF FAILURE."
Twenty-twenty hindsight will often show you that there was a
"little stumble" in the share price, just as the "assays were
delayed" or the "deal didn't go through." Manipulators were
peeling off their paper to START the downslide. And ACCELERATE
it. The quick slide down makes it improbable for your getting out
at more than what you originally paid for the stock... and gives
you a better reason for holding onto it "a little longer" in case
the price rebounds. Then, the drifting stage begins and fear
takes over. And unless you have serves of steel and can afford to
wait out the manipulator, you will more than likely end up
selling out at a cheap price.
For the insider, marketmaker or underwriter is obliged to buy
back all of your paper in order to keep his company alive and
maintain control of it. The less he has to pay for your paper,
the lower his cost will be to commence his stock promotion
again... at some future date. Even if his company has no
prospects AT ALL, his "shell" of a company has some value (only
in that others might want to use that structure so they can run
their own stock promotion). So, the manipulator WILL buy back his
paper. He just wants to make sure that he pays as little for
those shares as possible.
"RULE NUMBER EIGHT: THE MARKET MANIPULATOR WILL COMPEL YOU INTO
THE STOCK SO THAT YOU DRIVE UP ITS PRICE SHARES."
One can avoid market manipulation by not buying during the huge
price spikes and abnormal trading volumes, also known as chasing
the stock to a higher price.
"RULE NUMBER NINE: THE MARKET MANIPULATOR IS WELL AWARE OF THE
EMOTIONS YOU ARE EXPERIENCING DURING A RUN UP AND A COLLAPSE AND
WILL PLAY YOUR EMOTIONS LIKE A PIANO."
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