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Pastimes : Can SI Members Really Manipulate Stocks? -- Ignore unavailable to you. Want to Upgrade?

To: akom who wrote (421)	3/20/2000 11:06:00 PM
From: Arcane Lore	Read Replies (1) \| Respond to of 461

akom: You raise several interesting issues. Let me give my opinions on them one by one. I think these kinds of scams are small potatoes compared to the news that some big time investors put out--don't you?? Have you ever heard a company officer give reasons not to invest in their company? Or have you ever heard a fund manager tell how he's stupidly bought up a bunch of a given company's stock? Have you ever seen a company's stock go through the roof in a few hours and stay there? I would certainly agree that you don't see these events frequently - but they do occur (for example, Steve Balmer's comments last spring(?) indicating that he thought tech stocks were overpriced including MSFT. In addition, analysts being interviewed by CNBC occasionally do admit that they made a mistake in their prior picks - though usually only when confronted with the mistake. I don't recall ever hearing the word "stupid" being used even under such circumstances<g>.) I would certainly agree that generally company personnel and analysts employed by investment banks may not be the most objective source of information. Furthermore if they move beyond simple bias to outright lies designed to manipulate the market for profit, then I believe such behavior falls in the same category as some of the alleged manipulations highlighted in this thread. It certainly deserves regulatory attention. I think all investors are looking to be in on the pump and dump whether it be day trading or long term. Isn't it all just the nature of the animal?---creating an illusion of demand regardless of the fundementals? I may be wrong but that's my perception. I disagree. If you had phrased the first sentence as: All investors are looking to make a profit whether they are day trading or long term investors (or swing/position traders) I think it would come closer to the truth* However, some, while seeking profit, will not buy a pump and dump stock based on moral/ethical considerations. Others will not buy based on the pragmatic consideration that in that particular game of musical chairs they may end up a loser (sometimes also known as a "accidental long term investor"). Even among those that will buy a pump and dump stock in the hope or expectation that a bigger fool will come along to buy their stock at a higher price, few are willing to hype it while selling into their own hype. I could be wrong but I suspect most hold the last type of individual (the active, hypocritical pump n' dumper) in very low regard. As you probably have guessed, I share this view. * There is a book published many years ago about Bernie Cornfeld which used one of Cornfeld's catch phrases as a title: "Do you sincerely want to be rich?" The author argues persuasively (IMO) that in many cases the true answer is "No" - at least in the sense that the investor in question often has something else other than wealth as his/her primary objective when investing.