Bill Wexler's Profits of DOOM Message Board

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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: James F. Hopkins who wrote (25)	2/22/1998 1:44:00 AM
From: Bill Wexler	Read Replies (2) of 4634

I thought about this quite a bit.... You're right that the stock is rigged. But history has shown that after the first major distribution has occurred in these sorts of scams, it is very difficult to regain control of the float - not only because it is "scattered" but because the bad news is now publicly available and it's hard to herd in the suckers a second time. That's why most of these pump and dump schemes usually have one major peak, a quick decline, and then fade off into oblivion (though there may be some short-lived rallies along the way). It is safest to short these stocks during this fade-off, even though the first major drop was missed. Interestingly, most professional short-sellers make the majority of their profits when a stock goes from 5 to 0...not from 50 to 5. Judging from the volume, I believe that most Biotime stock was distributed when it was trading in the mid-20's (i.e. that's when most small investors bought in). I am confident that it will eventually trade below 1, and that the chance of a squeeze or rally to its old highs is negligible.

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