CONFESSION OF A HYPSTER...
Its time for me to come clean with the OTC:BB investing community. There is a campaign going on to try and
convince investors that the MMs are the blame for a low stock price. You see, we are paid free shares by the
companies we represent in order to keep the share price as high as possible while providing liquidity for insiders to
dump shares into the float. The way it normally works is we agree to post at least five times a day. A price is set and
we must keep the price above the set price. For each day we can keep the price above the target we recieve shares
from the company. The number of shares is based on the size of the O/S. When you see an SEC filing that shows shares given to a certain entity in exchange for services performed as "consultants", usually those are the people
hyping a stock. We as a group decided that the best way to keep a stock price up was to convince the loyal shareholders not to sell and, in fact, to accumulate when the price would drop. The most effective way we found was
to make up a scenario where the MMs were shorting the stock. That created an "us" against "them" mentality, which
caused the investors to "dig in" and fight instead of cutting their losses and moving on. For a textbook example of this, check out the PCBME thread. We have been working that one overtime. The truth is the MMs only short a stock
when there is a huge demand that exceeds their supply. This occurs on a runner, a stock whos price is rising very
quickly. MMs DO NOT SHORT STOCKS THAT ARE DROPPING. They dont have to because they are dropping for a reason. SOMEONE IS SELLING LARGE BLOCKS. When you see trades on level 2 going through at the ask it doesnt necessarily mean that trade was a buy. If someone has a large enough block to sell they can make arrangements with a MM to sell to that MM at the ask. We were so convincing that a group on RB started emailing SEC representatives complaining about the criminal tactics of MMs naked shorting. This was all made up by our group. MMs are required to balance the books monthly. They cant be short non existant shares. Its a myth. We laughed so hard when we found out about the emails to Mr Levitt at the SEC. Its a simple case of amateur investors who lost money on questionable companies with more questionable management, and they needed to place blame somewhere so we gave them a place. The MMs. I suggest you do two things when you see your investment shrinking.
Check the latest 10q filed by the company and compare it to the previous one. Look near the top for the O/S. Check
the difference in O/S between the current filing and the previous one. That will show you how many shares have been
added in that three month period. Then watch the volume. If the volume increases in relation to the added shares then
you can be sure we are dumping shares. Another way we create liquidity is through carefully worded PRs. These are
designed to create interest in the stock so we can liqui- date our shares more easily. These Prs will usually contain
catch phrases like "NEGOTIATIONS" , "INTENT", "AGREEMENT", etc. Or they will do like PCBME did and announce a deal with another company without disclosing terms. All of these things are designed to get the loyal investor to help in the pump and dump. It generates enough excitement to cause spamming on other boards along with news alerts being generated. Its just a way to get eyes directed to the stock. I apologize to all who i may have hurt financially through these tactics. I was forced to create this identity to hide my true alias. Its for my own protection.
Please, from now on if youre going to invest your money in a penny stock, dont believe ANYTHING you hear from ANYONE. The only information that you can depend on is in the SEC filings. If you cant find it there then dont believe it. Even if you hear it from the CEO himself. The only lies that will be prosecuted through the SEC are lies on docu- ments filed with the SEC. Every CEO of a penny stock company knows this. What they tell you off the record will
never be enforced. So learn to read the filings and use them. Whatever you do, DONT BELIEVE ANYTHING YOU READ ON A MESSAGE BOARD, PRO OR CON.
Reprint from CAOL board on RB |
