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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (3732)	8/29/2008 8:23:56 AM
From: rrufff	Respond to of 5034

Interesting posts from an IHub poster. Placed here for informational purposes, not verified and no opinion rendered as to substance, particularly any claims that relate to penny pinkies. siliconinvestor.com Posted by: sometimes_right Date: Thursday, August 28, 2008 3:36:40 AM In reply to: Stevenvegas who wrote msg# 116510 Post # of 116732 "Compensated" bashers are for REAL... I was approached (PMed) by a person whom identified himself as a hedge fund manager and asked if I cared to join their group and "exchange trading strategies." He immediately wanted me to discuss everything via Yahoo chat, which their group uses to discuss "strategies" independent of Ihub's electronic facilities (no activity trace), and then each posting their predetermined messages on whichever MB they are "working" at that point in time... I had immediately contacted westeffer about this offer, and he wisely told me to stear clear of such activity because it was illegal. (thanks again westeffer for the sage advice to a rookie) In this particular case, the "compensation" apparently was the awareness of the group's plan of attack on a given stock, and positioning one's on holdings of that stock to advantageously profit from the "pump" or "bash" and/or "pump & dump" plan they decided upon... Seeing how it's much easier to bash a pinkie/penny stock posting many forms of negativism's... whether it be truths; shaded truths; fictitious facts; rumors or downright lies to cause a given stock's PPS to drop rather than attempt to pump a penny stock's PPS upward using superlatives... the group probably bashes more than pumping... BUT I'd imagine the ring leader front loads the stock & attempts to pump it as high as possible, before flipping around and shorting the stock. Which addresses some people's doubts whether pinkies/penny stocks are shorted, because it's "too expensive" to do so... Which is true if you are talking about the average retail traders'/investors' financial capabilities and market-technicality awareness & abilities... but for an off-shore hedge fund it's a piece of cake... Especially since most pinkie/peny stocks have relatively small investors pool & limited liquidity, which allows for easy manipulation of trading... and which the hedge funds (and other larger players would I assume) take advantage of... knowing beforehand that their group is pumping (and helping to pump if there are promoters independently & unilaterally involved with a stock) to a certain level when MOMO seems to wane (usually at a surprisingly high PPS which is why retail stops purchasing)... then to crush the stock with shorts and perhaps even naked shorts, depending upon how "weak" the target company is... AND the reason that some "paid bashers" continue to attack a seemingly worthless sub-penny stock is most likely their ring leader started shorting & naked shorting the stock at much higher PPS levels and wants to prevent ever from having to cover those shorts. As far as Matt working to invite/force "paid promoters & paid demoters" to provide disclosures and pay a higher commercial rate to utilize Ihub's facilities - I have no problem with THAT as long as it includes BOTH "paid promoters & paid demoters"... BTW: naturally I turned down that hedge fund manager's offer because his team's orchestrated trading activity and investor sentiment manipulation is ILLEGAL! DISCLOSURE: I am and always have been just & only a retail investor - without any "professional market affiliation." siliconinvestor.com Posted by: sometimes_right Date: Thursday, August 28, 2008 6:59:43 AM In reply to: rover_az who wrote msg# 116626 Post # of 116732 No matter-FACT is Hedge Funds are illegally manipulating some if not many pinkie/penny stocks with the help of people they recruit from the message boards, such as Ihub... Whether they are disgruntled investors that lost money or individuals lacking moral compass looking to make quick "easy money"... it's all the same - ILLEGAL ORCHESTRATED TRADING & STOCK MANIPULATION... (and very likely conducted by others besides hedge funds)... AND anyone dismissing or diminishing such illegal activities should be investigated themselves for trading improprieties (imo) I say fine, revoke license and lock-up ALL market "professionals" that are not adhering to the letter and intent of the law... and it's OBVIOUS there are many crooks in the industry abusing their "professional" power & positions. I've never experienced such levels of systemic criminality until I began investing in the stock market. Should have heeded the advice that several licensed Nevada Gaming Operators gave me - the stock markets provide worse odds for the average individuals than casino gambling because of the lax enforcement of regulations (among other points).

To: rrufff who wrote (3732)	8/29/2008 9:01:07 AM
From: rrufff	Respond to of 5034

Another one from IHub of interest siliconinvestor.com Posted by: Woogster Date: Thursday, August 28, 2008 10:06:44 PM A long way from stinky pinkies and far far away from Missiouri, a whole bunch of bunch of much better heeled players prove that coordinated attacks on high profile deals works. Bash for cash, smash, hash or stash: The more you state it isn't happening the more we are sure that it is. Your contrarion indications are eating you alive, just like they ate Holtzee, Mitchell, Redmond & Herbie. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Mega-hedge fund manager Daniel Loeb recently disclosed a double-whammy to his investors: substantial losses early in the third quarter of 2008, and the initiation of a formal SEC investigation into the operation of Loeb’s fund, Third Point Partners. Loeb blamed part of his firm’s losses on the unfortunate fact of being short financial stocks just when the SEC decided to temporarily enforce existing laws prohibiting illegal naked short selling of a handful of such firms. Loeb blamed the SEC investigation on a perception that his communications with other hedge funds violate securities laws. While nobody outside the SEC can know with certainty just what it is about Loeb’s communications with other hedge funds that might be problematic, based on my observations of Loeb’s stock message board postings, I do have a theory. In this installment, we’ll examine apparent coordination between Daniel Loeb and David Einhorn, manager of mega-hedge fund Greenlight Capital. According to his book, Fooling Some of the People All of the Time, Einhorn established his much-storied short position in Allied Capital (NYSE:ALD) in early May of 2002. Einhorn first publicly outlined his short thesis on the late afternoon of May 15, 2002. The next morning, Allied held a conference call to address Einhorn’s claims. Interestingly, Einhorn himself did not participate in that call, however the first several questions - which achieved a much greater level of specificity and detail than Einhorn offered the night before - were asked by Daniel Loeb. Either Loeb is an unusually quick study, or he and Einhorn had communicated substantially on the subject of shorting Allied Capital in advance. Interestingly, on Allied’s Yahoo Finance message board, one of the biggest proponents of the Einhorn thesis also turns out to be Daniel Loeb. In this message, for example, Loeb’s alter-ego, senor_pinche_wey (as proven here), confronts a poster who questions the veracity of Einhorn’s claims regarding Allied. A few weeks later, Loeb’s alter-alter ego, mr_pink_esq (also proven here), says of Einhorn’s analysis: “Looks like Einhorn has this one nailed. Einhorn has one of the best reputations in the business. He would hate to be on the wrong side of this trade.” And lest you think Loeb was just offering his buddy Einhorn moral support, consider this post, in which Loeb wonders aloud (in the third person) how he might spend the “millions He will make on his ALD short. He was considering purchasing Himself a new car. However He is torn between the Aston Martin DB9, the Bentley GT and the Ferrari 360 Spyder…Maybe if this thing goes bust He can buy Himself a Mercedes Maybach.” In all, Loeb, with the direct support of known paid message board basher Yolanda Holtzee (using such account names as ms_mint_green_esq and regulators_have_been_notified) personally posted scores of such messages over three years. This appears to be an example of Loeb and Einhorn coordinating their efforts on the short side. Coming soon: a clear-cut example of Loeb coordinating efforts with another hedge fund manager in his role as a so-called “activist investor” (and in so doing, skirting key securities laws while holding a metaphorical gun to a target company’s head).