Even this tout site doesn't believe it. LOL!
otcnn.com
Strange Press Release in
OTCBB land
By Giando Argentina
Published by OTCNN.com
09/14/2000 09:03 AM EST
I came across some strange news today from Global
Online India (OTCBB: GOLX) relating to Market
Maker manipulation of their stock. A few companies
seem to be taking a stand on the manipulation of
share prices lately, whether it is by the so-called
bashers, by media or by Market Makers themselves.
I would like to point out that I have never traded this
stock and I have no plans to trade the stock.
I do want to point out though, that in this particular
case, the press release seemed a little odd. It states:
"Although the GOLX stock has been up over 1200%
in the last six weeks, following a recent merger and a
200% stock dividend, the company claims that
mysterious "block trades" have possibly been
"crossed " or "washed" by some of the stocks'
market makers with the intent of artificially moving
the stock price lower to protect the market maker's
position in the stock. "
Yes you did read that right, over 1200% in the last
six weeks. Maybe they feel a 1200% return in six
weeks did not reflect the true value of the company.
About the block trades, I wonder what the amount of
shares in these block trades was; the company
traded 3,800 shares yesterday and good trading days
seem to be around the 20,000-share mark.
I am not trying to be cynical here, but maybe the
Market Maker manipulation issue would be best
suited for a company that is heading down as
opposed to one being up 1200% in six weeks
according to their press release. I am sure the
company does a fine job in their line of work and
they would obviously have more knowledge about
manipulation of their stock than I do, but it did strike
me as odd.
The company also stated that: "today (they) asked
the United States Securities and Exchange
Commission (SEC) to immediately start an
investigation into possible market manipulation and
potential fraud concerning the trading of the
company's stock by OTCBB market makers." We
will have to see how that pans out. It should be
interesting either way if the SEC gets involved.
The press release goes on to say: "The market
makers’ artificial downward manipulation of this new
stock may very well be illegal." I would imagine
manipulation of stocks in the matter described in the
press release does get the attention of the conspiracy
theorists, but again I am trying to find the downward
manipulation of a stock with such a return in such a
short time and for such a new company. If the SEC
starts an investigation, I will be sure to cover the rest
of the story, as it pertains to all participants in the
OTCBB and could set some precedents for future
investigations. But again, it just seems odd. |
