Interesting posts from an IHub poster. Placed here for informational purposes, not verified and no opinion rendered as to substance, particularly any claims that relate to penny pinkies.
siliconinvestor.com
Posted by: sometimes_right Date: Thursday, August 28, 2008 3:36:40 AM
In reply to: Stevenvegas who wrote msg# 116510 Post # of 116732
"Compensated" bashers are for REAL... I was approached (PMed) by a person whom identified himself as a hedge fund manager and asked if I cared to join their group and "exchange trading strategies." He immediately wanted me to discuss everything via Yahoo chat, which their group uses to discuss "strategies" independent of Ihub's electronic facilities (no activity trace), and then each posting their predetermined messages on whichever MB they are "working" at that point in time...
I had immediately contacted westeffer about this offer, and he wisely told me to stear clear of such activity because it was illegal. (thanks again westeffer for the sage advice to a rookie)
In this particular case, the "compensation" apparently was the awareness of the group's plan of attack on a given stock, and positioning one's on holdings of that stock to advantageously profit from the "pump" or "bash" and/or "pump & dump" plan they decided upon...
Seeing how it's much easier to bash a pinkie/penny stock posting many forms of negativism's... whether it be truths; shaded truths; fictitious facts; rumors or downright lies to cause a given stock's PPS to drop rather than attempt to pump a penny stock's PPS upward using superlatives... the group probably bashes more than pumping... BUT I'd imagine the ring leader front loads the stock & attempts to pump it as high as possible, before flipping around and shorting the stock.
Which addresses some people's doubts whether pinkies/penny stocks are shorted, because it's "too expensive" to do so... Which is true if you are talking about the average retail traders'/investors' financial capabilities and market-technicality awareness & abilities... but for an off-shore hedge fund it's a piece of cake...
Especially since most pinkie/peny stocks have relatively small investors pool & limited liquidity, which allows for easy manipulation of trading... and which the hedge funds (and other larger players would I assume) take advantage of... knowing beforehand that their group is pumping (and helping to pump if there are promoters independently & unilaterally involved with a stock) to a certain level when MOMO seems to wane (usually at a surprisingly high PPS which is why retail stops purchasing)... then to crush the stock with shorts and perhaps even naked shorts, depending upon how "weak" the target company is...
AND the reason that some "paid bashers" continue to attack a seemingly worthless sub-penny stock is most likely their ring leader started shorting & naked shorting the stock at much higher PPS levels and wants to prevent ever from having to cover those shorts.
As far as Matt working to invite/force "paid promoters & paid demoters" to provide disclosures and pay a higher commercial rate to utilize Ihub's facilities - I have no problem with THAT as long as it includes BOTH "paid promoters & paid demoters"...
BTW: naturally I turned down that hedge fund manager's offer because his team's orchestrated trading activity and investor sentiment manipulation is ILLEGAL!
DISCLOSURE: I am and always have been just & only a retail investor - without any "professional market affiliation."
siliconinvestor.com
Posted by: sometimes_right Date: Thursday, August 28, 2008 6:59:43 AM
In reply to: rover_az who wrote msg# 116626 Post # of 116732
No matter-FACT is Hedge Funds are illegally manipulating some if not many pinkie/penny stocks with the help of people they recruit from the message boards, such as Ihub... Whether they are disgruntled investors that lost money or individuals lacking moral compass looking to make quick "easy money"... it's all the same - ILLEGAL ORCHESTRATED TRADING & STOCK MANIPULATION... (and very likely conducted by others besides hedge funds)...
AND anyone dismissing or diminishing such illegal activities should be investigated themselves for trading improprieties (imo)
I say fine, revoke license and lock-up ALL market "professionals" that are not adhering to the letter and intent of the law... and it's OBVIOUS there are many crooks in the industry abusing their "professional" power & positions. I've never experienced such levels of systemic criminality until I began investing in the stock market.
Should have heeded the advice that several licensed Nevada Gaming Operators gave me - the stock markets provide worse odds for the average individuals than casino gambling because of the lax enforcement of regulations (among other points). |
