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Microcap & Penny Stocks : BYWD - Baywood International
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To: Joe Copia who wrote (10)7/21/1998 4:50:00 PM
From: Marc Bertoglio  Read Replies (2) of 74
 
Oh come on guy's, we all know what's going on here.
A group chose a indeed very promising company with small float. Before releasing their pick, they bought about 300'000 shares and pumped the price up nearly 50%. The confused MM are holding a wide spread, so they can't sell it for this gain.

In this point of time the e-mail goes out and other buyers are coming in and the MM must rise the bid because they don't have enough shares for another big run. As soon as there are enough buyers around the so called "analyst group" start selling and make a big profit for doing their DD. Of course this is better than getting directly paid by the company (HVAR ??) for hyping BS, but also not legal.

However, the problem on this whole Newsletter-pump&dump-Game is that it doesn't work! The so called members seldom can sell with a huge profit and most of them are losing money on it, at least in the short term.

By the time MM start selling the stock to the buyers without having it. After reaching the peak (sells are coming in -especially from the "Letter-Group") they take back the Bid and cause a small panic. More people sell for not being the last and so the price is tumbling down within a short time. Because the MM sold short, the stock price goes down under where it has started. That's the point where the real, convinced investor should buy this stock.

Time will show if the DD they made is correct and the company can generate value for seeing this peak again.

Good luck
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