ZeeV: I would have to say your post makes much sense compare to other discussion in this thread. You confirmed some of my thought. Here is another e-mail I had received. I feel it fit into "DWSC" case well. Just FYI to those who are not familar the Reg S
e-mail enclosed:
=== There you are, Jan. Thought you'd never ask <g>. 'Pumping and dumping'
simply means that somebody --- an insider, an IR firm, a brokerage, or even
an overseas recipient of Reg S stock which the SEC under our laws does not
require the company to tell you about until too late (!!) --- has some stock
to get rid of so they 'promote' the stock by calling around and saying it's
going to go up in price, of some kind of news is coming soon ... then they
might even buy a block to make it 'look' like there's real activity.
That's churning, and illegal, but so is shorting a bb stock, and both go on
all the time. So then, you, and even some of the professionals start
buying, and they use that volume to sell their stock to you. Often you will
see large volumes of stock in a company and there is absolutely no price
movement ... trading sideways or taking a step forward and two steps backward.
If you were watching the 'bizarre' happenings in GIFS, you will recall that
'Mr. Smart Investor' was posting all kinds of rosy predictions about big
contracts, all kinds of crap, on the Silly Con Investor thread only a couple
of days before the State came in. What the SEC apparently thinks (good
thinking) is that this gentleman who had once lurked on our forum as well,
had received 'insider' word from someone in the State of Tennessee Dept. of
Insurance and we understand an internal investigation at that Dept. is going
on and that the State's Attorneys General have taken this aspect seriously),
while the same gentleman was doing a round of calls to others on the SI
thread (three of whom provided this Forum with a written statement and
participated in a conference call all verifying this call to them from the
gentleman) asking them to 'pump' the stock at a specified time and day so
the Street and others would jump in so they could all sell. To their
credit, even though one lost quite a bit of money which I understand was his
sole education fund for a medical degree, none of them would do that and
they alerted Waaco and we alerted our list to this 'disinformation'.
Rarely does it happen like that ... where someone is so blatant ... but
anytime you see big volume and trading sideways, beware ... if you have
money in the stock, think about taking it right back out and eating your
commissions. |
