To: rrufff who wrote (3316 ) 3/17/2000 2:47:00 PM From: rrufff Read Replies (1) | Respond to of 6847
Basher tactics courtesy of SCU8452 on the RB board. TO All XYBRs This is for when the Bashers arrive!!!!!! I got this from Swanson ANATOMY OF A BASHER... The Penny Stock Gazette Your Weekly Penny Stock Newletter December 11, 1999 Bashers by Dan Holtzclaw Bashers versus the hypsters, it is the eternal struggle on the penny stock message boards. While the hypster tries his hardest to make you buy a particular stock, the "basher" does his best to make you sell your hard-earned investment. How many times have you gone to your favorite board only to see some jerk making crazy posts such as, "SELL THIS DOG NOW!" or, "THIS STOCK WILL TANK TOMORROW!"? I see it all of the time, and the bashers never cease to amaze me with their wild and crazy posts. Many may wonder why a person would try to drive the price of a stock down. It's simple really; there are a few possible scenarios that motivate bashers. Scenario number one: the basher once owned the stock in question, sold it for a profit, and now he wants the price to dip so he can get back in again at a lower price. Scenario number two: the basher has lost money on the stock in question and is getting "revenge" by trying to tank the price. Some people just get their kicks by angering other investors; believe me, I've seen it happen. A guy who gets burned by a stock is more than happy to go and bad mouth it to all. Compared to the hypsters, the basher has a much simpler task at hand. It is much easier to scare someone into selling a stock than it is to convince someone to buy one. The basher will take any information he can find on a stock and twist it into a frightening message. For example, anytime a penny stock has a dip in price, the basher will claim that the stock is tanking. The basher conveniently forgets to mention that the same penny stock just had a 50% gain yesterday and that the current dip in the price is only 10% of the previous day's gain. Bashers, the good ones, often have very intimate knowledge of the stocks that they trash. These unscrupulous fellows will often take information out the company's 10K and 10QSB reports and use it to their advantage. The SEC 10K filing lists company financial data in addition to other information such as current pending lawsuits. As is the case with most beginning ventures the financial data for many penny stock companies is not what one would call stellar. These businesses tend to have large start up debt and minimal revenues. The bashers will use the financial data in the 10K to scare investors into selling. If the financials were so bad, why wouldn't you sell? Well, the answer is simple. When investing in penny stock companies you are taking a big risk. The risk you take is entrusting your hard-earned money to a company you hope will become profitable as their business develops. With penny stocks, as with large cap stocks, you are investing in the future value of the company. The key words here are future value. Bashers don't look to the future; they dwell on the past. Concerning lawsuits, remember that almost all businesses have lawsuits pending against them. The basher will use the pending legal proceedings from the 10K as ammunition for their trade. Lawsuits sound scary and the basher knows this. It is a simple fact that legal proceedings are a way of life for today?s business community. The basher doesn't tell you this, however, he only focuses on how the pending lawsuits will "bring the company down". A good basher can take totally legitimate information and use it to scare off the novice investor. Newbies, unfortunately, are the usual victims of the bashing community. A common practice in today's business world is using company shares as leverage in making purchases and acquisitions. An example of this is when Yahoo purchased Geocities for a combination of cash and company shares. The basher can take this totally benign information and use it scare off a newbie by claiming that the purchasing company is short on cash and is resorting to using their shares as a means to pay the bills. How can these guys get away with such dastardly tactics? Doesn't the SEC monitor guys like this? The sad truth is that these bashers are very smart folks. They know that the SEC is watching them like the proverbial big brother. So what does the basher do to avoid the long arm of the law? Words such as "possibly, could, may, and might" protect the basher from the law. These few little words change a basher's statements from fact to fiction. A smart basher would never say, "This company is a scam!" The smart basher, the one who stays out of prison, says "Caution! This company may be a scam!" Do you see the difference? . . . .