. . . . Capitulation Prerequisites . . . . .
This memo fell out of the pants pocket of a Wall Street Insider, while doing what they are known to do best. >wink<
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INTRA-OFFICE MEMO TO ALL BROKER/DIRECTORS
DATE: MARCH 4, 2000
SECURITY: LEVEL III CONFIDENTIAL
RE: INVESTOR CAPITULATION
PROJECT: UNCLE
1. The retail tech investor must be fully capitulated before we move ahead with plans. He must give up completely on tech stocks, sell his positions and run to gold or real estate as a safe haven to what surely must be "a total collapse of the U.S. Economy". Our P.R. staff has been doing an excellent job getting the word out.
2. There can be no remaining trace of confidence in technology. The more CEO appearances saying "woe is me" the better. Get it arranged.
3. There can be no hope that technology stocks will ever bounce back from this. Bring out the big guns to discredit all moves into technology. And shame all who ever participated in investing in technology. Glorify those who stayed completely out of techs all along. . . and who "saw it all coming" as the true gurus of Wall Street.
4. The U.S. Economy must be seen as growing weaker. At any signs of strength from economic reports, we need to take the markets lower to reduce consumer confidence. As consumer confidence decreases, investors approach the total capitulation point.
5. Continue extending as much margin as you can during the downtrend. Go beyond the limits prescribed; all the way to 10% equity if we must. If any complaints come in, just claim it was a computer glitch. Each time an investor finally capitulates and sells, cut off all margin so they cannot buy anything back without coming up with fresh money.
6. Make sure that once the tech market does turn, there is no buying by individual investors, only by our brokers.
7. The individual investor was allowed to participate in these markets during our DotCom run. We allowed them to make plenty of money. They quickly gave back much of it to us through our IPOs. But we want all of it back and then some. No tech investment is to be considered "safe".
8. Watch for the warning signs of capitulation by the individual investor:
a. The drop of posting activity online.
b. The shutting down of top investment communities [even if we have to buy them ourselves]
c. The disconnection of all individual investors, one from another. The flow of information must be broken using whatever means necessary.
d. The discrediting of all individual gurus, leaders and those who would work to ban together individual investors.
e. High profile investors in trouble with the SEC. NOTE: Unlimited Funds are approved for Legal Representation. Plenty of media coverage to show that individuals were wrong about all their tech choices and that the blame goes to other individuals for hyping the tech markets.
f. The traditional capitulation signs: liquidation, desperate attempts at consolidation of holdings, drop in consumer confidence, rise in odd-lot short-interest, etc.
It is important not to see any activity toward the tech market by the individual investor, if we are to have total capitulation. We will test this by releasing takeover rumors and upgrades of the top selling tech stocks. If the individual investors refuse to take the bait, we'll know they have capitulated.
Our Sales Director reports that for every total liquidation, we have 4 newly funded accounts. When that figure reaches 7 we'll know that we are ready for the next wave. There are plenty more downgrades coming to force more liquidation, so this figure should grow rapidly.
We have 14 IPOs slated for release this year. So have your manager/brokers ready to move quickly and with little advance notice. The IPO market will be more difficult this year, but we have some breakthrough technology which will be impossible to resist. And with 175 IPOs scheduled for this year, the market could get saturated quickly. So we are going to try to be first to market with as many offerings as we are able.
We are raising the minimum trading balance required for gaining access to our IPOs. This will keep 95% of individual investors from getting in ahead of going public. And this should keep levels down as we get our largest customers in ahead of the masses. This year we have arranged some irresistible post-IPO rumors that will continue fueling sales during the quiet period.
But it is imperative that the dotcom individual investors not take part of this next wave. We have plenty of new investor blood ready to jump in head first. We'll call them "Generation M" for Mobile. We don't need to confuse matters with "more experienced" investors trying to keep our new marks from making "the same mistakes" they made. So we will not move ahead without "total capitulation" of the dotcom generation, and a complete cutoff of information to new investors.
As usual, report any irregularities to the Strategic Service for investigation. We've had reports of some factions attempting to better organize. Anything that you hear along these lines should be immediately reported to the SS.
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The second page of this memo had fallen into a liquid of sorts and was obliterated. Looking over the Hot Subjects on SI, it appears that efforts have begun to take down the leaders. Look for more of this. And I've heard that another fictitious memo like this one was found, proposing ways to shield analysts from being targeted by investor lawsuits.
Best wishes,
Rande Is |
