Time for a little REALITY CHECK. This is a small part of my portfolio. I can't keep up with all the people in every stock I am long. I try to avoid the personalities, pumpers and bashers, but I like the posters here and on the other board. I don't really care about histories or crazed allegations. I read these boards for information and to get an approximate feel for sentiment.
Many posters, both long and short, throw around allegations about the SEC being or getting involved. Reality check - the SEC is extremely under staffed and can't handle even the worst manipulative behavior. Anyone who thinks this is otherwise is in la la land. Anyone posting to the contrary may be just trying to manipulate and scare.
The SEC gets 1000's of notes a week from longs or shorts claiming quite moronically that some poster lied on a message board. I defy anyone to come up with a case that the SEC has gone after a single poster for just that.
Seriously, get a REALITY CHECK!!!!
Even if they had the manpower, has anyone here ever read cases and commentary interpreting the anti-manipulation regs such as 10(b)-5?
Saying "to the moon, $1 tomorrow. Will buy a corvette." are not violations of anything. A reasonable person knows it's all BS. Similarly, "I have 3 bazillion shares I bought at .03 and I am never selling, never, ever, even when they hit $1000 a share." It's all BS and I am amazed at the time people spend being critical. I say "wow" "good luck to you." Imaginary traders are legendary on message boards. Only the gurus were right 100% of the time and they had access to FBI information and extorted.
People and companies sue message board posters and most lose. Read some of the boards here and you will see that. I find it funny that some of the shorts want to sue or get the SEC after message board posters. Yet, they are the first to run for the 1st amendment. It's quite hypocritical and totally unrealistic.
But that really doesn't matter. THE REALITY CHECK is that the SEC does not go after posters IF it's not part of a pattern of manipulative behavior, e.g., the recent guru case.
A case could be made if someone posts something like what I will post in the next paragraph. These are inside information, if true, and manipulation, if false.
"Tomorrow there is to be an announcement of a well that has hit and gives us 1000 barrels a day."
OR
"I have information that the company is a scam. The SEC is going to shut it down. The principles are being served with a subpoena."
These types of posts are actionable. Even this blatant an attempt to manipulate would be difficult to prove. Again, the SEC has few resources. The company is best ignoring the poster. However, if a company or the SEC decided to go after a post with very specific factual content, which post is intended to manipulate, and, in fact did lead to manipulation, then that poster could face some serious consequences. Again, how badly does the SEC want this poster or how badly does a company want to shut a poster down?
We saw the recent trial of the convicted SI guru. We saw extortion, we saw front running, we saw manipulative posting. There was a very strong pattern and it was a big case with lots of ramifications.
So - all the crap about "to the moon" even "proven reserves" are really just wild arsed opinion that a reasonable person would not be deceived or fall prey to manipulation. REALITY CHECK.
I've asked someone here who claims to have knowledge of actual criminal or manipulative information, factual based, to explain or post that information. Withholding material information or alleging it, even with CYA words (e.g. rumor), can lead to possible problems. In other words, claiming to have factual information that would lead to an SEC shutdown is as bad as saying the actual facts of what constitutes the manipulation, perhaps even worse.
I'm not just a one-sided cheerleader. I've posted a couple of lengthy suggestions to management as to how to establish credibility, how to foster a strong shareholder base, all of which involves sacrifice by management, not taking the easy free pennies that can be scammed in the early pinkie world. I'm hoping that they read some of my suggestions.
Those who post here about lack of information and generic bash really haven't gambled on a pinkie before. By definition, it is non-filing, should only be gambling money, etc. HISC took some major steps the past week, including sacrificing management shares, cutting its o/s in half, insider buying and steps to get on to OTC BB. I'd like to see SPRL do something like that. Alternatively, they need to give specifics on both sides of the operational equation. I.e., we have a well, but it will cost $x or we have to give up Y% of the working interest.
That way, a shareholder can evaluate the potential, put a price on it. The company is, at that point, less open to manipulation by those on both sides, e.g., those who would claim to the moon tomorrow or those who would lie about the company going bankrupt tomorrow or that everything is a scam.
Given all that, I would be very careful in posting a claim that a company will be filing bankruptcy, is being shut down by the SEC, is run by crooks. Truth is a defense to defamation but is not necessarily a defense to manipulation. Claiming that "I send everything to the SEC," could be considered akin to a factual claim that the company has violated SEC acts or regulations thereunder. One needs to be very careful in this regard or the many complaints could conceivably backfire onto the party filing the complaints.
Above are all general comments. They are worthless without specific factual evidence. The reality is, as I posted, that the SEC does not have the manpower. I always find it funny when a poster, posts the SEC computer answer "we will look into your complaint," as something. It's a computer answer that everyone gets.
However, when someone or some company has a pattern of behavior, intended to manipulate, which does, in fact, become manipulative, then that party or company can have problems. Spreading manure can lead to a smell that sticks with you. |
