Cyril:
Many have heard of this Mcdo Internet Club and many have not. IMO it would be a good idea for all to have some DD on this subject.
I short, here is a collection of three e-mails that have been forwarded to me.
The first two will explain what this "club" offers to its members and the last one, I believe is the one that you are referring to as "Were there anymore suckers besides myself that got taken in today on the mcdo HOT Pick???????".
#1 MCDO CLUB RULES
Subject: Club Rules. Sunday May 17.1998 Date: Sun, 17 May 1998
From: mcdo <McDo@cnx.net> To: YYM D <McDo@cnx.net> Sunday May 17,1998
This is for all the new members who signed up over the last two days... membership is surging....this club is getting HUGE... Bravo to all members..... keep spreading the word. For the members who have already received this, please disregard ,it is identical to previous Club Rules.
McDo Investment Club.~~~~~~Club Rules ~~~~~~~~.
{This is a supplement to the "McDo Investment Club" - Invitation.}
This is how we (suggest) it should be done......
I am detailing the following, so that all members get the feel for what this club will be doing.
We will be doing momentum trading / day trading, we as individual investors are at the mercy of the big institutions and market makers. They pump and dump on us all the time. We will be doing penny stocks, since they are easy to bounce with momentum trading. We select only quality Companies. We will be writing the charts instead of following them, we will be creating the need for other investors to buy in.
We (Club Members) invest our $3,000.(Suggested) each, or more, whatever you are accustomed to investing, and with our combined buying power, no matter what is going on in the market that day. The volume will push up the price of the stock selected.
THIS IS THE MOST IMPORTANT ITEM: ***** We all invest together ,the same morning. The "Pick" will be sent out at 4:00 p.m. P.S.Time. That will give the club the time it needs to complete all phone calls & meetings with respective company Directors & Investment Reps to
finalize all pertinent news. We want to move hundreds of thousands
of shares , if not millions of shares in the companies that we select.
We suggest that each member invest the $3,000 minimum, (Suggested) (if you are unsure, invest nothing, in the end it is your decision) rest assured that many of our members invest substantially more. How Accumulation / Momentum occurs. Since we only invest in good
companies, usually what members do is after the investment increases in value, members take out there initial investment (momentum), to be used again on the next pick) and than they are left with their profit in shares which they can keep in their portfolios (Accumulate), or sell at a future date for profit. We anticipate at least 25% increase in value - Of course we will accept MORE.
Only invest what you are able to loose, this is the stock market after all. Depending on your risk tolerance level. You do want to be able to sleep at night.
*********************************************************************
WHEN ALL CLUB MEMBERS BUY AT THE SAME TIME, THE SAME MORNING, CREATING A MASS OF BUY ORDERS WITHIN A 15 MINUTE TIME FRAME, THIS ACTION WILL DEFINITELY MAKE THE SHARE VALUE RISE.
*********************************************************************
With the sort of buying volume, that this club can generate, we alert the Large Financials and Institutions. They then invest there millions and move the stock up further. No one gets hurt, because the big
investors do not invest their millions without doing their own extensive Due Diligence, in effect we are simply alerting the BIG BOYS to the existence of this quality stock.
Remember that any profit, no matter how small is still a profit, more than you had at the outset. Do NOT be greedy, (Suggestion / Tip), use tight Limit - "On Stop / Stop loss", orders to lock in for maximum profit. Regards McDo.
#2 Mcdo's advice
Subject: Stop Loss Sell Orders.... Date: Mon, 18 May 1998
From: mcdo <McDo@cnx.net> To: YMM D <McDo@cnx.net>
Hi,
Just a short note of an explanation about something I wrote in an earlier Email sent to all members.
Some members have Emailed me asking for more details.... I have compiled this (below) for your info....
Thanks
McDo
Explanation:
Stop Loss SELL or On Stop Order....(same)
An order to either sell or buy securities if the price falls or rises unexpectantly. On Canadian exchanges an On Stop / Stop Loss order becomes a market order to buy or sell when one board lot of the security trades at or through the "stop" price you specified.
An On Stop SELL order can only be entered below the current market price. It is used to prevent or reduce a loss that may be caused by a drop in the price of your security.
Example:
You buy 10,000 shares @ .18› of XYZ Inc. You are monitoring the stock and it increases in value to .24›. The bid is .24› & The ask is .25› You would enter an On Stop Limit SELL order @ say .22› in order
to protect any large loss. You continue to do this (put in new HIGHER Stop Loss limit orders) as the share value keeps rising in price, do not put the limit to close to the actual current price ,because if the
current price trades through your set limit price, your sell order will be executed.
This way, you will come away with a nice profit.
If you place your order in the morning and then do not monitor it, it could possibly rise in value , say from .20› to .40› and than come back down to .25›.. if you had placed a stop loss / on stop SELL limit order @ say .35› , as the price comes back down, your sell order
will be executed at the .35› you had specified and you come away with a nice .15› per share profit. T.D. Greenline offers this feature.... some brokers (discount) do not offer this feature, please verify
with your broker to make certain.
Regards,
McDo
PS... The pick will be out at 4pm PST this afternoon.
#3 HOT PICK THAT WENT COLD
Subject: -We have been had- Date: Mon, 22 Jun 1998 14:34:51
From: mcdo <McDo@cnx.net> To: YYM D <McDo@cnx.net>
To all members,
I must apologize to all members who participated today in the buying of SGU.V I obviously grossly underestimated the amount of selling pressure that was out there. Selling today came from practically every House in the land. I was under the impression that there was to be
buying support - instead we got hit with selling and shorting.
There was not a whole lot of short selling out there in the market today, there was a lot of selling, period. Pull any and all bids that you may have on the books. Do not feed the sellers any more club cash.
I am holding onto my shares, I have not sold any shares. I have not shorted any shares. I will wait for any news that the company will put out.
My strategy of posting the pick over night or over a weekend is faulty. On the one hand, I want to give club members enough time to do their own due diligence and on the other hand it gives to much time for current shareholders to line up to sell. It also gives to much
time to the troublemakers to post on the internet, what our pick will be.
The element of surprise is what we are after, no surprise, we get what happened today.
I realize that my credibility is at stake. I am not here doing this to cause anybody any grief. I truly believe that my idea ( re: this club) is a sound idea, I want members to make money.
MY NEXT PICK WILL BE RELEASED TO MEMBERS SOON. NO ONE WILL KNOW BEFORE MEMBERS KNOW. THIS ONE WILL NOT BE POSTED ON THE NET BEFORE WE CAN ACT. WE WILL NOT BE UNDERMINED THIS TIME.
I have another company lined up for the club. This company is a class act. The share float is very, very low. I will Email the next pick 15 minutes after the markets open, so as not to give the troublemakers any time to act.
Late tomorrow I will bring you more news on my next pick. regards mcdo
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