You do seem to like quoting me out of context. Why didn't you post a link to that message, Message 5494778 so people could read the whole thing?
Because I was trying to protect you and not reveal the advice and strategy you proposed in public for being an illegal shorter. In case you didn't realize it, what you are advocating -- the shorting of BB stocks by an individual U.S. citizen is illegal. The SEC does not like that.
But if you insist, I will do even better. I will repost the entire message rather than just a link. OK, folks, read the following message and you will see Paul McGinnis' true motives for posting on the DGIV thread. But I would not advocate doing this if you are a U.S. citizen, because it is illegal:
Perhaps, the thing to do is act in a cynical fashion and exploit those stocks that the gullible masses buy on the OTC BB. Some tips you could use to pursue such a goal are:
(1) Look for stocks that are being hyped here, or on other places like ragingbull.com . You could also check out the monthly updates of the 100 most active OTC stocks posted on otcbb.com , although with the top 100 you want to look for highest average daily dollar volume, not share volume. Look for companies that don't file with the SEC, by checking the EDGAR database at sec.gov . Basically, you're looking for the biggest hyping with the least tangible value. Another thing to watch for is when the average daily volume keeps increasing, which shows more interest in your target stock. (Presumably, some "financial advisor" or broker is hyping the stock online or by putting people on the phone to push the stock.)
(2) Buy the stock and ride it up. If the price doubles, you might want to sell half your shares, so you essentially have free shares to play with. Don't sell until the stock inevitably starts going down, then dump your shares.
(3) If the stock makes it above 5 dollars per share, you can easily short it. That way you can short it as it inevitably falls, and make a profit twice. If you're worried about a short squeeze, you could always short those shares that didn't cost you anything from step (2).
(4) Don't bash or hype the stock on a public forum, so you won't have anything to worry about if the SEC decides to take a closer look at what happened.
Paul M.
There, Paul, you happy now? |
