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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Gabriel who wrote (49062)	1/9/2000 12:35:00 AM
From: thegreaterfool	Read Replies (1) \| Respond to of 122087

Gabriel,There is Pump&Dump, the flipside is called "Bash for Cash" It works like this. 1. Once a stock begins to spike in price, "Bash for Cash" shorts will go make a "call" that the stock is to high priced. "Its junk" "Bad bad stock" They may even take a small short position, or simply claim they do so. At this point it relatively tame posting or calling. 2. The same shorters will then attempt to inflate the price of the shares, giving the stock artificial strength. (This is done completely behind the scenes, nothing posted publicly) This has a high price for some newbie shorters. The "Bash for Cash" short will literally "eat their own" and execute a "short squeeze" This will cause a temporary day or 2 day blip in the stock price, far in excess of normal rational levels. Small shorts and those without good discipline will be forced to cover. recent examples include JWEB, XING, and likely on Friday, a stock called PLUG) 3. When the smaller shorts are getting forced buyins, and the stock has reach incredible heights, the "Bash for Cash" short, exits all there long shares used for squeezing and riding the updraft, and puts out the "REAL" short position. The bodies of the broke shorts and mo-mo players finally allow the Basher to cash out by selling in the nose bleed levels. The short is not going to be all at the top, no one can get all the shares off at the top. At some point it happens…everyone has the same idea…sell…and everyone mo-mos, shorts, "Bash for Cash" shorts, and Longs start to sell. The rest is predicatble a stair case downward leveled mostly by shorts covering. This is referred to a a broken down stock, or the stock has broken. 4. If the play is real strong and has hit very high levels, especially in this market other things will happen. This is where the BASH comes in. "Bash for Cash" Posters will then instruct, intimidated, and ridicule Long holders of the shares to sell there stocks. This is critical. The Bashers need the stock to dump promptly, not slowly. The message board fill with "official" sells recommendations and the like, and profain posting at times Certainly not all shorters work like this, and there is nothing wrong with shorting in general. But "Bash for Cash" shorters hurt investors out of there own greed. The harms and negative effects are exactly equal to those of a Pump and Dump. Sometimes it is hard to bring people out of the reality they have crafted for themselves to believe. Sort of telling people about Santa. :thegreaterfool