OT>>
EC, it is like the large brokerage firms, on a small scale. For instance, before or after a large firm takes a position in a stock, through IPO, Private Placement,or purchase, they trot out an analyst report that tells the world how good it is. Then they sell it to the suc..oops the customers that believe the brokers that sell it to them. In the case of an IPO, the introducing firm can sell short or buy long to "stabilize the market" as they call it. After a "respectable" period of time, the firm offloads the stock, and shortly after or concurrently, issues a downgrade or hold..which is about as bad. Then if they wish to repurchase, the firm can pick it up cheaper.
Point being, brokerage houses are influential through their "opinions" This you probably already knew.
....So, on these boards, there are now many types of folks, some want to put out news and opinions to educate, some to try to influence the price higher, and some to influence it lower. Literally millions of people read these boards, and the number is growing. The influence of various posters cannot be denied. Of course, you just met some of all three types. I neglected to mention, interspersed amongst the investors, are PR people, insiders, crooks, and just plain antagonistic people, in there just to create havoc for fun or because they don't have a dog to kick.
A lengthy response, but an interesting phenomenon.
Best, Savant |
