* GEORGE
CHELEKIS'
HOT STOCKS FLASH
22 May 1996
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COPYRIGHT (c) 1996 by George Chelekis. ALL RIGHTS RESERVED.
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(For Circulation & Corporate Profile Advertising Sales ONLY):
****************************************************************** --TWO-PART SERIES ON MARKET MANIPULATIONS......
Many of you still don't understand how to avoid a market
manipulation. So I thought I would give you some REAL-LIFE recent examples
of such market manipulations. Today's is ADVR; tomorrow's article is on
Western Premium and Brian Smith (yes, HIM again!)
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--FEAR & LOATHING AT ADVANCED VIRAL RESEARCH....
of Stock Manipulation," we saw a textbook example of such a manipulation.
One of the participants in this manipulation was, Elliott Bauer, a
gentleman whom ABC-TV's 20/20 referred to (in January 1995) as "the Button
King." Boy, he may have buttoned down some suckers on the recent run up in
Advanced Viral Research (OTC BB:ADVR). Unfortunately for Mr. Bauer, I
tape-recorded him during a telephone conversation we had on April 12th 1996, whereupon he clued me in that ADVR was going to go "a LOT higher." That tape is in a safe place and will be turned over the authorities at the appropriate time.
I have followed ADVR since February 1995, when Elliott Bauer of
CURE Pharmaceuticals approached me about reviewing ADVR. His company,
1. CURE, paid $8800 for a review on ADVR, which I thought, at the time, was a bit odd. But, I continued reviewing ADVR, and mentioning ADVR in Whispers or
FLASH or Confidential, because of the numerous letters I got from ADVR
shareholders, most of whom had friends or relatives who had died of AIDS. I
stopped doing so when I realized that the ADVR push was a "hype job" on the part of a very few large shareholders, including Mr. Bauer. chuckled at their attempts to get me to hype ADVR as I would pick up messages from my 2. recorded hotline -- in a falsetto voice, someone would just repeat "ADVR,
ADVR, ADVR...." I even got an "anonymous email message" about the ADVR run
up, a few days before it happened. Cute, eh? 3. There were no less than TEN news items on the wire services between April 18th and May 5th, mostly reportage by Kevin Shinkle of Tampa, Florida on the Bloomberg news service. (By the way, although we work in the same
city, I have never met and never spoken or corresponded with Mr. Shinkle,
nor do I know who he is.) One has to wonder what crock Mr. Shinkle was
being fed... and by whom! I have my suspicions. One has to wonder, also,
why the SEC did not step in DURING the run up, but INSTEAD waited until
after the run up had peaked and ADVR began quickly retreating.....
NOT UNTIL AFTER THE MAJOR COLLAPSE IN ADVR SHARES, WAS THERE A COMMENT MADE BY THE US SEC COMMISSIONER! That was May 10th, 1996. ADVR had already traded above $1/share for four days, after having previously been run up for SEVEN trading days, and then had been rundown ANOTHER SEVEN trading days -- still well before its May 20th collapse..... before the SEC Commissioner made any statement at all! Absolutely amazing! FIFTEEN TRADING DAYS OF SILENCE! AND ONLY AFTER THE DAMAGE WAS DONE! And, believe me, I know, from personal experience, that the SEC had been watching ADVR -- 4. with one SEC investigator having interviewed MR. BAUER in either March or early April..... before the ADVR run up began.
You know, I could have made a TON of money on this one as a trader.
But, I completely stayed away from it. I did so, because this past summer,
5 .Elliott Bauer informed me that he had a group of investors who were "into running up stocks." I wasn't interested in playing in THAT sandbox! So I
didn't....
For those wishing to contact Mr. Elliott Bauer, he may be reached
at work at 212-921-8265 (or fax him at 212-921-4086). Heck, even phone him
at home at 908-679-7713. If you wish to write him, his home address is: 1
Firethorne Road, Oldbridge, New Jersey 08857.
I don't think Mr. Bauer acted alone in running up the shares of
ADVR. I DO know that he met with Dr. Hirschman of Mt. Sinai over a year ago
and was 6. instrumental in enlisting Dr. Hirschman's support of reticulose. I am also aware that Mr. Bauer had a very substantial position in ADVR and quite possibly may have reaped millions of dollars in trading profits during this recent run up.
Barron's -- in its wonderful wisdom and with incredible timing --
SAID NOTHING about ADVR until AFTER THE FACT! Instead of reporting on ADVR
in their May 13th issue -- so that the small, innocent investors had half a
chance to get the hell out of the stock, Barron's waited until their May
20th issue.... after ADVR had collapsed from an intra-day trading high of
$2/share to last Friday's close of 79 cents!
If one closely followed CNN and CNBC-TV and read the financial
dailies, one could see that there was an "orchestrated media attempt" to
BRING DOWN THE SHARES OF ADVR! All of that actually failed last week and
ADVR still closed UP on Friday, May 17th. It was not until Barron's -- the
shortsellers' weekly rag -- came out with a scathing hatchet job on ADVR,
did the share prices collapse. You can even see the HIGH VOLUME (5.9
million shares traded) with Tuesday's brief run up in ADVR to an intraday
trading high of 47 cents -- those were the shortsellers COVERING their
positions!
What is so absolutely amazing about ADVR's entire "market
manipulation" is this: News of the research and "supposition" by Dr.
Shalom Z. Hirschman, Director of Infectious Diseases at Mt. Sinai Medical
Center in New York City was released....... on February 13th, 1995. It had
practically NO impact on the share price of ADVR -- in either volume or
share price appreciation. His actual "breakthrough" WAS the BIG EVENT...
yet ADVR shares hardly budged at all. NO ONE WAS INTERESTED in a
"potential AIDS cure," eh? If one had bothered to read my RECENT essays on market
manipulations, one would have looked at the ADVR stock chart and discovered
that -- lo and behold -- on April 5th, there was a VOLUME spike with a 45
degree angle. (That was nearly two months AFTER Dr. Hischman's
breakthrough!) Somehow, someone KNEW that there was: (a) Going to be a
paper presented about ADVR and AIDS at some medico conference; (b) They
told their friends and family about it, who accumulated cheap shares in
ADVR like bandits; (d) They knew this and accumulated IN DROVES, three
weeks before the run up.
Similarly, one should, by now, realize that ANY stock which has a
75-90 degree angle WITH HIGH VOLUME is not a speculation which you should
chase. In fact, it is one to be instantly SOLD.... which is exactly what
the insiders, professionals and manipulators were doing with ADVR. Its
stock chart was so cooked that Roman candles and M- 80's were going off by
the bushel!
For those you who still believe the financial markets are a warm, fuzzy place to picnic, I hope the above example opens your eyes a bit. |
