To all who regret the demise of the old Yahoo board, this post from the Parametric Tech thread might be of interest. It purports to explain how "Short and Distort" schemes work, and includes trashing bulletin boards where shareholders exchange info, provide mutual support, etc. Makes a plausible case that Jopeza/Attycpa and friends are part of an organized short campaign.
from the article: "Above all control the message boards. The group clutters the message boards so no positive information can be readily found."
dimgroup.com
here's a longer excerpt:
- Shorts on Message Boards
An Investor explains why he feels message boards are used by shorts to manipulate the price of stocks.
The Stages of a Pump & Dump Scheme vs a Short & Distort Scheme.
Stage I: Monitoring
In stage I of a Short & Distort scheme Short groups Monitor spikes in volumes on stocks with no rumors.
Stage 2: Flagging
Shorts Flag stocks that run up then sits back and wait
patiently for their time.
Stage 3: Preparation
The Shorters research the company and develop their
Distortion of the rumors to be used later.
Stage 4: Actual Shorting
The shorts step in selling on every possible up tick. This is the Reverse of front loading. Preparations are made to attack the guy who had earlier written positively about the company and take out, discredit, any new long-term champions or messengers.
Stage 5: Distortion Campaign
The shorts step in and increase selling on every possible up tick. Just as with the pump, newsletters, e-mail, PR firms against P & D, etc. are simulated. Expertise in the field is recruited for credibility. Any possible twist using POS (Purposely Omitted Syntax) and PAS (Purposely Added Syntax) is conveniently used on every possible angle. If the
POS/PAS is discovered then attack the messenger. Above all
control the message boards. The group clutters the message boards so no positive information can be readily found. Justification is the Value of the Company in the market. Projections of $0.00 worth and loss projections of 100%
Note: The market manipulator will do everything in his/her
power to keep buyers OUT OF THE STOCK. Cut your losses is
touted to stimulate fear. You bought higher but now they need
you to sell lower.
Stage 6: Pressure
The shorts have taken it too far. The volume is increasing and the price is not effectively dropping. A stalemate occurs. Personal attacks increase. Threats of legal action, SEC involvement, and yes even death threats increase. Increased secret IDs are employed to increase the cluttering, personal attacks and the distortion. So begins a string of lies that run for as long as one's stomach can take it. Desperately playing on the "you have been had" scenario. Any new news will be hit it hard by shorters to kill any interest.
Note: Watch the volume not the share price. A market
manipulator will have various brokers buying and selling the
stock to give the APPEARANCE of increasing volume but the
price goes down. Thus stimulating the story the company is
selling or an off shore reg S or other convenient scenario.
Watch for large blocks that show up but have a MM special
code, cross overs, etc.
Stage 7: The Cover
Without warning the buying pressure is too much and the
short begins to cover. Short covering combined with new
investors buying into the stock causes the stock to go up.
Often the whole thing starts again. Just a vicious cycle
sometimes.
Note: Pump & Dump schemes I have seen are investigated by the SEC most of the time, however the Short & Distort scheme is not apparently high on the SEC's agenda. The shorts, unlike the dumper though, has an unlimited loss factor should the stock price go up.
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