Here's an explicite example that may help
We go to lunch with Gordon, and he tells us
verbally that once the cats out of the bag,
his stock should be trading several dollars
higher. Now, imagine that Bear Stearns is
a market maker of TSIG. I can call my broker
and say that Gordon made these forward
looking statements verbally, and if the in
house market maker would call him to confirm
or deny these statements. It's completely
within my rights as a shareholder to make
such a request, and it's completely within
the Market Makers right to call Gordon for
comment. Now obviously this only works with
very big and influential client account, so
every Joe 6-pack can't pull this off or the
market makers would be calling this kind of
stuff in all day long, right? But amoung
the lurkers here are many influential traders
who could easially solitcite the a market
makers attention. Now, the Market Makers
get's Gordon on the phone and says "my
client Mr.A, and his associates Mr.B & Mr.C
claim you said this stock will be a 10 bagger
once all the news is out, presumably soon.
Gordon talking to the Market maker would
have to confirm, deny, or elaborate. As
soon as he does, whatever is said goes on
the Record to the brokerage house that
Market Maker works for. That Brockerage
house can elect to tell their clients
verbally, in a newletter, or even in a
press release, any significant forward
looking statements Gordon said. Either
way, we as shareholders win!
Now don't get me wrong, SEVL was a good
example of how forward looking statments
are made, and do help. When WAVO signed
up with SEVL it was the inferance by the
insiders of both companies that this could
have explosive impact on SEVL, and that
statement was again re-itereated the next
day (& I luckly made a bundle trading it)
But there was a tangible product association
made who's success could be judged by any
person hearing it. For TSIG to say that
announcement as yet unspecified will lift
the stock considerably is rarely done by
any insider, as no outsider hearing that
can draw any inferance whatsoever. If
Gordon said for example "when Yahoo signs
to use our service exclusively" that would
actually be a more responsible statement
assuming it can be comfirmed that TSIG
and YHOO were in negotiations, and would
raise no objections because an outsider
could arrive at his own decision. But to
say that some unknown, and unrelated news
beyond the actual web site launch, will
lift the stock into dollar trading range,
is simply unheard of. I've posed this
issue to several 30 year trading millionares
I know, and they are as amazed as I am
by the sentense: "He says they have significant
developments that, when announced, could literally
take this stock to a couple dollars overnight.
P.S. It's completely possible, (though even my
ego won't allow me to believe it) that somebody
already got an MM to call in, and confirm Gordon's
statements, which may be why we're finally having
some action in the stock on an otherwise down day. |
