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Pastimes : MANIPULATION IS RAMPANT --- Can We Stop It? -- Ignore unavailable to you. Want to Upgrade?

To: TheStockStalker who wrote (386)	6/18/2002 11:01:31 PM
From: Dave Gore	Read Replies (3) \| Respond to of 589

No, the main point of this thread is Manipulation (and the hope for fairer markets). Just because you don't mind seeing a powerful shorting group manipulate a fundamentally good stock with untrue rumors, some may have an ethical problem with it. But there's another reason to stop manipulation (read on...) Not all people are daytraders who can follow all the shenangigans. You said there was a double top, but just because that is somewhat true (actually there was a recent high of $25) that doesn't mean a stock should fall 40% after an already low PE company, in a very healthy niche, beats earnings by 10 cents. That, in fact, cheapens the very idea of fairness in the Markets and those who try to do fundamental research Sure, you may benefit by buying stocks cheap when other traders are panicked out near the lows. But not's not what fairness in the Markets is really all about and this is a much bigger issue than one stock. Some like you perhaps might say, "Let the buyer beware?". Well, maybe, but if 99%+ of all Americans work and can't daytrade, and this can happen to a very healthy stock, it may further drive investors out of the Markets. Maybe those spreading rumors to tank stocks will eventually have to start cheating each other. One thing is for sure --- not many shareholders expect their stock to drop 40% after they beat earnings by 10 cents. And I know I certainly don't tolerate untrue rumors tanking stocks. If you want the Market to remain an active place, you better hope that this huge group of shareholders who can't daytrade doesn't get totally fed up. You better hope the guy that's counted on to panic doesn't leave the Markets so you can pick up your stock cheaper. Try reading the recent "Business Week" issue devoted to "How Corrupt is Wall Street". That's exactly what is happening. Want to see an even more manipulated stock? Have a look at AGM. That stock tanked from $46 in late April to $23 a couple weeks ago intraday. Farmac Mac has had incredibly strong and stable earnings growth. It turned out a NY Times article blasted the company, but had 19 glaring errors in it. Stock is now $32 again but there's probably a lot of real people who got stressed out over this. Many obviously panicked and sold ---- due mostly to a calculated smear campaign. A drop like this never should have happened. And why was it so successful? Because this group preyed on already existing fears out there and knew that they could probably get away "Scot free" with spreading rumors or perhaps hiring a NY Times author. Kind of a sick way to win, isn't it? Again, the main point is not that you or I can buy the stock cheap and take advantage, but that probably a huge number of shareholders who work everyday and can't follow their stocks, got hurt unfairly. That's not right, and shame on people like you for thinking it is. You Said: "Do you see how it works???? The market tried to do you a favor and give you an even better price but when you did not get what you wanted and when you want it, you did not make yourself available to an even better entry. The moral of the story is, keep your stop losses tight when you are buying a two year high double top and even more so in a bear market."