Can SI Members Really Manipulate Stocks? Message Board

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Pastimes : Can SI Members Really Manipulate Stocks?

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To: Jeffrey S. Mitchell who wrote (424)	3/31/2000 7:43:00 AM
From: Arcane Lore	Read Replies (3) of 461

It is often contended that message board posts have no impact on share prices unless the the stock is thinly traded. Lucent is the most widely held issue in the U.S. ( lucent.com ) and frequently ranks among the most heavily traded issues on the NYSE (for example, yesterday it was number 9 in volume on the NYSE: quote.yahoo.com ). The following suggests that no stock, no matter how heavily traded, is immune from the influence of message board posts (in this case, allegedly fraudulent posts). Day Trader Is Charged in Case Stemming From Lucent Hoax By STACY FORSTER THE WALL STREET JOURNAL INTERACTIVE EDITION A Houston man was arrested on federal securities-fraud charges for allegedly posting a phony news release about Lucent Technologies Inc. on an Internet message board and trading 6,000 shares of the company's stock as it reacted. Fred Moldofsky, 43 years old, Thursday was accused by U.S. prosecutors in New York of posting the release and other messages on a Yahoo! Inc. bulletin board March 22 and March 23. In his postings, the self-described day trader allegedly warned that Lucent expected profits in its second fiscal quarter to fall below analysts' estimates. The Murray Hill, N.J., company's shares initially fell 3.6% as the news spread among investors. The drop shaved $7.1 billion off the company's market value, prosecutors said, but the shares recovered after the company exposed the scheme. [...] interactive.wsj.com

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