From the Undervalued Dog
Q: Some people are questioning FAMH on SI board. Can you go through posts and answer some questions? Why are some people spending so much time on bashing a stock without any rationale?
A: No, we can't. We went through some posts on SI board about FAMH. We really don't see a lot of useful information regarding FAMH. Basically, two types of people are often bashing a stock without any rationale. We need to be very careful. First, as the Internet has become very popular in exchanging information among individual investors. Some MMs are taking advantage of it by hiring Internet representatives in order to mislead investors. We call "dump and pump" on the Street ("pump and dump" means paid brokers and MMs manipulate stock price, currently it has been banned by the SEC). They target some profitable OTC BB companies (less than 2.5% of OTC BB companies are profitable), as they know the price will go up anyway. These Internet representatives disseminate baseless rumors about a company, twist facts about a stock, or confuse investors by asking some questions that nobody understands. THEY ARE SPENDING SEVERAL HOURS A DAY BASHING A STOCK. [caps added] They often use some works very often like scam, mob, unknown number of issued shares, Reg S, personal attack, non-reporting, and so on to scare some investors. Then, MMs short the stock, drop the tick, and cause panic selling. Thus, they can cover their shorting positions and increase their inventories for the uprising price. When we read some posts by several people, we found they just don't know what they are talking. It is so amusing that they act like a pro or investor! They stated something like "EPS is meaningless if we don't know the outstanding shares". EPS means earnings per share, it doesn't matter how many outstanding shares there are. The SEC is investigating this kind of practice and will have a ruling on it. If you know these people, please send us their e-mail addressed or where they show up, we will track them down and file a list for the SEC investigation. Also, we need it in case we may want to file a class lawsuit against their MMs and their Internet representatives after the SEC ruling.
Second, we heard that a head of a group of daytraders requested some information about when FAMH will release news regarding closing Myriad deal when he interviewed Mr. Monas. When Mr. Monas refused to do, so as required by the SEC rules, He cried for a foul. Since then he called FAMH a scam, though he even made some money on FAMH. His members have been going over the Internet, calling FAMH a scam. We advise our reader always do your own research, such as visiting company, calling management, and so on. Thus, you know what you are investing and won't be panic when stock price is down. Also, you would know when it's time to take some profits.
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